Credit and Reputations

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These are challenging times to work in the credit industry. When the whole of the world is at panic stations about country credit rankings, government debt, business debt, let alone personal debt – the industry has its work cut out holding up the responsibilities end of the debate at the end of a telephone line with a debtor.

We are working in times of forbearance for personal collections and government prompted “time to pay” policies for businesses falling behind with their crown debt. Those at the epicentre of the financial world – banks – have not been allowed to fail. And how time to pay policies can be reconciled with the premise of the Insolvency Act, which seeks a level playing field of solvent companies, is anyone’s guess.

Pity then anyone with the job title – debt collector, bailiff or insolvency practitioner. We run awards promoting best practice and success for these sectors so we know what we’re talking about. Every year we’re in the news for simply being preposterous enough to believe people who work in these sectors can get awards for their good work. This year we really are touching a nerve – the Evening Standard has written about October’s Insolvency & Rescue Awards no less than three times – and I don’t remember them writing about any of the thousands of jobs or viable businesses saved by those shortlisted.

Here at Credit Today we’re used to it. We’ve had comedians refuse to hand out the award for Alternative Lender of the Year and even the occasional egg throwing threat at one of our events from a vigilante consumer site.

Sadly, those that believe in the adversarial nature of the creditor debtor relationship – most of the mainstream press it seems – are missing the point. Engagement between creditors and debtors is the order of the day. At Credit Today’s Utilities and Telecoms conference in windy Blackpool last week there were many examples demonstrated of constructive relationships between the two sides. Debtor support group P*lymouth CAB and energy provider EDF Energy demonstrated how they had teamed up to provide an alternative focus for debtors* to engage with the firm they owe money to.

Both reflected on the number of people that were ready to call the CAB office rather than EDF to provide the real reasons for why they couldn’t pay – often based on unique circumstances to do with their lives they felt uncomfortable relating to a commercial organisation. The benefit for EDF was the ability to understand better a silent part of the customer base it had previously been unable to contact.

The Thames Water speaker who spoke about their firm’s debt amnesty initiative to write off past debts so debtors would come forward and register to pay ongoing bills was equally poignant on the need to find new ways to connect with debtors.

The industry is demonstrating innovative ways of working and engaging with debtors in these difficult times. How the industry tackles the way it presents itself with debtor group representatives and the media will become ever more pressing as disposable income continues to shrink. We’re ready, as ever, for a no doubt bumpy ride.

Kamala Panday, publisher, Credit Today

Posted on 27th September 2011 by Heather Greig-Smith

 

 

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