UKAR ARENA | A NEWSLETTER FOR DEBT ADVISORS | SPRING 2016 | ISSUE 11 | UKAR-ARENA.CO.UK
“ONE OF THE BIGGEST CHALLENGES
IS SUPPORTING CUSTOMERS OF
FIRMS THAT ARE NOT AUTHORISED
BECAUSE THEY DO NOT MEET THE
REQUIRED STANDARDS.”
For example, if they agree to freeze interest or
charges under a DMP, we would expect them to
take a similar approach when dealing directly with
their customer.
We have also been talking to creditors about how
they can proceed and manage the process when
a firm they were working with doesn’t receive
authorisation. We expect them to give forbearance
and other appropriate help and have already seen
some really good practice.
For example, when one creditor became aware
that a firm wasn’t going to receive authorisation
they identified which customers of theirs would be
affected and made sure they had at least 60 days’
‘breathing space’ – time to assess the situation
and, with the help of their debt advisers, to get
new arrangements in place.
At the same time, there will be people who, despite
our best efforts, do not respond, perhaps because
they are vulnerable or experiencing other difficulties
linked to their debts. We still need to do everything
we can to reach them, and to explore different ways
of communicating.
We’re also aware that when firms don’t receive
authorisation they may decide to sell their book on.
We wrote to firms in November 2015 to set out our
expectations of both selling and buying firms and
to remind them that communication with customers
is paramount. In every scenario, communication is
key – we are being active in driving that process so
customers can get the help they need.”
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The views in this article are those of the contributor and do not necessarily reflect those of UKAR.
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