People will always remember how they were treated by companies during the debt crisis of 2020. How do you want to be remembered?
The coronavirus outbreak has wreaked havoc across the world and upended the working lives of people all over the UK – leaving millions of Brits unemployed and faced with unexpected financial difficulties.
In our white paper, we highlight the change in debt trends, providing advice on how you can prepare for the new debt era and how to guide your customers through this time.
This paper sets out the imminent challenges in debt recovery and debt profiles, caused by the Covid-19 pandemic. It provides guidance on some of the key areas of debt management that would benefit from focus at the early stages of recession to limit loss, maintain business reputation and protect vulnerable customers.
The insight highlights how the profile of debt is likely to shift from public to private sector with an increase in debt related to ‘luxury’ purchases. It considers how GDP will suffer an unprecedented reduction leading to the deepest recession since the end of WWII and how customer protection, including those who are vulnerable, must be at the heart of debt recovery practices. We propose that prioritisation should be given to a review of existing debt recovery policies and that changes to debt recovery policies and practices should be implemented through robust practices. Finally, we recommend that Expert opinion should be sought to enable the optimum balance between debt recovery and customer protection.
