Wescot appreciates that an effective tracing solution also provides an opportunity for customer re-engagement

Under the regulatory framework ushered in by the Financial Conduct Authority (FCA), never before has it been so important for organisations to ensure that they have an effective and fair tracing system in place. It is no longer the case that a ‘one size fits all’ approach is appropriate when it comes to tracing activity; businesses need to ensure that appropriate treatments are applied to individual cases and that adequate provisions are in place to ensure that third parties are not contacted in error. In particular, there are likely to be significant repercussions for those organisations who repeatedly contact the same third parties in error, both from a compliance point of view and, more widely, in terms of damage to that organisation’s reputation. As Wescot is well aware, it is important to treat actual customers fairly. It is equally as important to try and avoid distress for third parties who may be approached by mistake.

One problem faced by businesses is over how to identify a genuine ‘goneaway’ situation. The new regulatory regime reflects this. The issue is also relevant when it comes to determining whether reasonable attempts have been made to make contact with a customer before any formal action is taken to recover the debt. It is no longer acceptable for an organisation to plough on regardless with formal action and ignore the fact that a customer has failed to respond to letters sent to him and that he has failed to answer telephone calls.

wescotAlso of relevance is the fact that the way organisations interact with customers has changed dramatically over the last few years. In many b2c relationships, the vast majority of contact is online. If it is a longstanding relationship which suddenly turns into a non-contact scenario, the challenge faced by a business is to consider whether the last known physical address and telephone details for that customer are correct. In this climate, many businesses are likely to benefit from effective early arrears reconnection services. Not only can this approach maximise the chances of recovery, it can also increase the chances of rehabilitating the relationship between the customer and the organisation. Businesses are likely to benefit from approaching a company with a proven track record in customer tracing. Wescot for instance, employs a highly experienced locate team coupled with an effective validation process – both of which combine to help re-establish contact between customer and client.

Wescot understands the changes in the collections niche that have occurred in recent years

Since 2008, a number of important factors have posed challenges for creditors and debt collection agencies. For one thing, there is of course the broad economic picture to consider. The last five years have seen the most significant and prolonged economic downturn since the 1930s. On the one hand, this means that many consumers have struggled with decreased levels of disposable income over recent years. At the same time, concerns about the financial services sector as a whole has led to tighter regulation and a greater emphasis on compliance.

Against this backdrop, it may be natural to assume that recovery rates would have decreased over the last five years. From the point of view of one of the leading UK debt collection agencies, Wescot, this has not in fact been the case. While there was an initial decline in the immediate aftermath of the unsecured portfolios collapse of 2008, recovery activity for this particular company actually improved markedly (when compared to a fixed 2006 benchmark).

wescotBy looking closely at the way this company operates, it is possible to see how it has managed to achieve considerable success against what may be regarded as a ‘difficult’ financial landscape. For one thing, the company aims to treat customers fairly and to engage with each customer in an effective manner. In this way, it is possible to open up a constructive dialogue and to come up with a realistic repayment plan. This is in marked contrast to the bad practices that previously earned the sector a bad name and which Wescot has always rejected. Such practices include poor tracing methods – including doing little or nothing to verify customer contact details to try and ensure they are as up to date as possible. Other examples of bad practice include aggressive letters, an excessive number of phone calls and uncontrolled doorstep visits.

So far as Wescot is concerned, such practices are unfair, ineffective and very often counterproductive in terms of reaching a satisfactory outcome for all parties concerned. For one thing, this type of behaviour runs contrary to the current compliance regime. Equally as important, this type of approach eliminates the possibility of a meaningful relationship being rebuilt between the organisation and its customer. It also significantly undermines the ability of the collections agent to engage in a meaningful way with the customer and to bring about a satisfactory resolution to the situation.

Wescot knows compliance ought to be seen as an investment rather than a burden

It is fair to say that in the minds of the general public, the image of the financial services sector has suffered over recent years. Instead of merely paying lip service to the issue of compliance, organisations ought to take their responsibilities seriously so that they can be seen to be delivering fair outcomes to customers. This is something all organisations engaged in the consumer credit niche ought to take into account when choosing debt collections solutions. For one thing, failure to take it seriously increases the risk of an organisation falling foul of the tightened regulations that have been introduced under the new compliance framework.

Equally, if an organisation is engaged in the type of unprofessional practices that were all too common in certain quarters of the debt collections world in the past, there are likely to be serious adverse consequences so far as that company’s public image is concerned. Such behaviour included sending out overly aggressive correspondence and telephone calls. It also included poor data validation processes, resulting in third parties being repeatedly contacted in error regarding matters that were not related to them.

wescotA model debt collection agency is one that has compliance at the heart of everything it does. For anyone looking for a debt collection solution from a reliable company, it is worth paying particularly close attention to Wescot. This leading UK debt collection agency is not only a leading member of the Credit Services Association, it has also been active in helping to shape and improve practice standards for the consumer credit industry as a whole.

Wescot knows better than most how the way in which the approaches used by reputable debt collections agencies have evolved over the years. Part of this is down to the fact that ‘compliance’ is not a new concept. Reputable market leaders such as Wescot have been providing a benchmark in terms of fair treatment of customers for some time. In turn, policymakers have introduced specific industry-wide regulations and guidelines that are designed to ensure that all operators within this niche should strive to meet these high standards. The company says that its customers are often surprised by just how customer-centric its approach is. In turn, this means that effective solutions can be worked out. Such solutions are realistic so far as the customer’s circumstances are concerned – as well as meeting the needs of organisations.

Wescot knows over-reliance on ‘smart-data’-based tracing solutions may increase the incidence of mis-trace scenarios

wescotFor the credit services industry (and particularly those parts of the industry whose activities include tracing customers with whom organisations have lost contact), changes to the housing market over recent years have had significant implications. The high loan-to-value mortgages and interest-only deals that were common prior to the 2008 downturn have now either disappeared completely or have become an extreme rarity. This means greater numbers of people are living in short term rental arrangements or else are living with parents or other family members under informal arrangements for longer periods of time. For the consumer credit industry, this means it is often harder to differentiate genuine ‘goneaway’ scenarios from those situations where an individual is intentionally ignoring all attempts to make contact.

This has led to the development of what is referred to as ‘smart-data’-based tracing solutions. Whilst such solutions can provide a useful tool in those situations where an organisation is seeking to re-establish contact with an individual, they have their limitations (especially if used in isolation). What’s more, as Wescot points out, there is a marked correlation between the growth of these products and the incidence of mis-tracing. The company places a strong emphasis on treating customers fairly, which means it understands the need for organisations to pay due care and attention to the source and accuracy of the data they hold on customers and how they check and then go on to use that data. Avoiding mis-trace scenarios is an important part of this.

One potential cause of high mis-trace levels is the fact that the majority of organisations use the same type of credit reference agency (CRA) trace lead-generation data tools. It is very often the case that the same data sources are accessed on multiple occasions. If that information happens to be incorrect, it is easy for multiple mis-traces to occur. Wescot welcomes the fact that CRAs are taking steps to address this problem. One useful idea devised by the CRAs is a shared information line to deal with those instances where a mis-trace is identified. In such circumstances, all CRAs will be able to update their records to highlight incorrect data. This should reduce the chances of repeated mis-traces against an individual. For businesses looking for a locate solution with a proven track record, Wescot is worth serious consideration. The company combines tracing expertise with up-to-date validation processes to deliver results on behalf of clients and to treat customers fairly.

The importance of improving consumer confidence

Wescot Understanding what contributes to sustained economic growth is extremely important in relation to making the correct decisions to bring about such change. Immediately following the credit crunch, and with families throughout the country struggling financially, the Bank of England introduced extremely low interest ways in the hope of cushioning the blow of the tough financial times. The interest rates remained low for a substantial period of time which did indeed improve the financial situations of families throughout the United Kingdom. Following these cuts to interest rates in 2008 it was reported that families had more money to spend after they had paid household bills. Annual discretionary income trackers assess how much disposable income a family has after the deduction of the cost of living. These trackers had shown that following the drastic reduction in interest rates, a typical families disposable income increased from approximately £139 to £165. This increase lasted for roughly two years after the interest rates were lowered and brought a stability to the economy in the United Kingdom.

The improved stability of the market would not last. In 2010, the amount of disposable income that a family had to spend began to steadily decrease. This was due to a number of factors such as increases in the cost of living, rising prices for consumer goods and low levels of wage growth. Despite the cost of living increasing significantly over a five year period, the average household income only increased moderately therefore having a negative impact on a families disposable income levels.

Disposable or discretionary income plays a hugely significant role in the stability and improvement of the economy. It has been concluded that in order to strengthen the economy in the United Kingdom, consumer confidence must be restored. Consumer confidence is vital in terms of the amount of money a family is prepared to spend each and every week. Should a family have a low level of disposable or discretionary income, the confidence of that family to go and spend the money will invariably be low. This results in a sterile market place and problems for businesses and individuals alike as families tighten their purse strings and refuse to spend on items that they deem to be unnecessary.

Debt collection agencies such as Wescot are a good indicator as to how the economy is performing. Recent industry reports suggest that companies such as Wescot have reported that levels of unsecured debt had dropped significantly since 2005 as families attempt to tighten their budget in the wake of the credit crunch.

Wescot | Importance of Training to Great Customer Service

At Wescot, learning and development is a key aspect for the business moving forward. The landscape of the credit industry is changing, it would be short-sighted of Wescot for the company to not devote a lot of time and effort into developing the staff and preparing them for the new strategies necessary to overcome these obstacles. This is in addition to the customer service driven training that all Wescot employees receive upon arriving at the company and continue to develop throughout their time at the debt recovery agency.

Customer satisfaction is one of the main business objectives at Wescot. This goes for their clients, i.e. the companies that are still owed money, as well as the individuals that Wescot are tracking down for remuneration. To this end, there is a dedicated learning and development team at Wescot to ensure that every staff member is on the same page, no matter who a customer talks to at Wescot they will experience a great customer service and knowledgeable reception.

The industry of credit management is facing a turbulent future with the result of the Financial Conduct Authority (FCA) taking over as a regulating body. Companies that operate in this sector, like Wescot have had to adopt new strategies and business models in order to comply with the more stringent rules imposed on them by the FCA. The learning and development department have been busy too, making sure that their training programmes in the future will focus on the new legislation regarding debt recovery. It is only through working together as a team at Wescot that the company will continue to maintain their lead as the UK’s largest debt recovery company.

wescotConstant training and learning is also important to motivating a workforce. The more time that Wescot dedicates to improving the skills of their employees then they will feel more engaged with the company. This translates to a better, more efficient workforce and will contribute to the success of Wescot as a whole.

Mike Rustill is Wescot’s learning and development team leader and he brings a wealth of experience in managing in house training to the company, an asset to a company with so many staff members to keep developing.

Wescot – Money Advice Scotland annual conference

Money Advice Scotland hosted its 24th Annual Conference in Glasgow in June 2013. The long-standing event is seen as an important and informative event which is utilised by many people from varying backgrounds. The 24th Annual Conference addressed many different issues, but dedicated a lot of the event to the changes within the financial world and the regulatory process.

One of the key issues at the event concerned the changes in bankruptcy legislation, which will have a major impact on many people and businesses within Scotland itself. Also on the agenda at the conference were discussions relating to welfare provision with particular emphasis being placed on the effect that it will have on the consumer. Many of the changes that have recently been put in place were discussed at the event with many debating who will be the ones to benefit from the changes. The event gave like-minded people the opportunity to meet in one place and talk about issues concerning credit and debt.

The introduction of the Financial Conduct Authority was also addressed at the conference which was once again sponsored by Wescot, one of the largest debt collection services in the United Kingdom. The Financial Conduct Authority has been set up to deal with the conduct of large banks all the way down to small businesses and traders and it is hoped that this new authority will play an important role in the transparency of financial issues in the future.

wescotMany of the leading industry experts were on hand at the conference to offer their expert opinion and discuss relevant aspects concerning the current financial sector. The event once more played host to exceptional keynote speakers such as Margaret Curran MP, who discussed the changes to the welfare system whilst Paul Lewis of the BBC chaired the opening day’s events.

Wescot have been sponsoring the event for many years and are extremely proud to be associated with such a dedicated and comprehensive event. Wescot employ over 650 staff throughout the United Kingdom and are considered to be one of the leading debt recovery agencies in the United Kingdom. The fact that the company sponsors such a prestigious event is proof itself that Wescot are leading players within the financial sector and have a keen interest in the current issues.

Wescot | Importance of Learning and Development

For any business in the modern world, having a strong learning and development programme is key to maintaining the success of the company. People change jobs far more frequently than they used to, so getting a new influx of employees on the same level as the rest of the team is important, not to mention enhancing the skills of the staff already employed there. Wescot is the country’s biggest debt recovery company and employs over 650 people, one of the reasons they are able to handle all 5 million of the accounts that they process every year is through the dedicated training that the staff receive at the company.

Wescot is a customer focused debt recovery agency, at the highest priority is maintaining a positive working relationship with all of their clients. One of the ways that Wescot can do this is through their extensive learning and development scheme that regularly twescoteaches the staff that the customer is necessary. So for every person who works at Wescot, they will deliver the same high standard of service to every one of the debt recovery company’s clients.

There are many ways in which Wescot ensure the success of their learning and development. Linking all training to the performance of their employees is an effective way to show that by learning x, they are actively improving their ability to perform y. The reviews that Wescot perform on their employees is an integral part of this process as the learning and development team can monitor how effective the training has been. Another objective of Wescot is to ensure that their training is fun and engaging. For any employee to feel respected and valued by their company, they have to be engaged through learning activities. This then translates to a greater performance from members of the team that go through this training and therefore a greater customer service from Wescot as a whole.

The learning and development team comprises of some of the leaders in their field. For instance, Mike Rustill who leads the team, has joined Wescot from O2 where he was head of training there and he has won several awards for the success of his training programmes. Clients can rest assured that their needs will be met as a result of the high training standards set by Mike Rustill and the team.

Wescot | Customer Driven Learning and Development

Wescot is a debt recovery company that is based in Hull, Glasgow and Saltcoats. Employing 650 people, Wescot are able to process the 5 million accounts per year that they receive, to the high standard for each of the company’s clients. Customer satisfaction is a philosophy that runs right through Wescot and is most pronounced in the learning and development Wescotprogrammes that the team put together. With the changes that the debt recovery industry is currently undergoing, there is even greater emphasis on a successful training department to better cope with these new changes.

The Financial Conduct Authority (FCA) has recently taken over as the regulator of debt recovery companies. This means that the team at Wescot behind learning and development have worked hard to make sure that the training that their staff receive adheres to the guidelines set out by the FCA. Complaint management is an area that has received greater scrutiny amongst other areas. For Wescot, it is important that they are able to maintain close relations with their clients and the employees at the company are trained to explain to clients exactly what they can expect under the new rules from the FCA.

In order for employees at Wescot to feel motivated to convey the company’s philosophy of customer satisfaction, they have to feel engaged with the company. One of the most effective ways of increasing their engagement level is to enhance their training and skills. Wescot’s learning and development department have put together a training programme, that through reviewing all employees they can work on the areas that need improving. What this means for Wescot’s clients is that every employee should be dedicated to satisfying their needs and everyone delivers the same high standard of service.

Ultimately, employees at Wescot have to be aware of what the company’s aims and objectives are. The learning and development team have a comprehensive induction process that relays this information to all new employees but they also extend this throughout the whole company. Under the leadership of Mike Rustill, a highly trained and educated L&D leader that joined Wescot from O2, the L&D department ensure the success of the company through their training and review processes.

 

Wescot | Updating the Debt Recovery Process

The current economic climate, despite showing some signs of recovery, is still putting a lot of pressure on people financially. This has a knock-on effect to companies involved in the credit process and as such the six years since the credit crunch has forced many creditors to update their operating procedures in light of the changing industry. Couple this with the changes implemented by the new regulation body, the Financial Conduct Authority (FCA) which has in fact put greater pressures on credit manawescotgement companies then businesses are in a state of flux. Wescot, the country’s largest debt recovery company has however, adapted some of its processes in order to remain at the head of the game.

The average level of disposable income for 2013 was £139 per week. For anyone with outstanding debts then this severely reduces the amount at which they can pay and puts pressure on debt recovery companies as the timescale on a collection is lengthened. To overcome this problem and still deliver a high standard to their clients, companies must be forthcoming with what targets they can reasonably achieve.

When the FCA began regulating the debt recovery market, one of the new rules they introduced meant more efficient complaint handling from debt recovery companies. In order to handle the number of complaints from account owners, Wescot turned to Equinti, a software company that creates programmes to drastically change the efficiency of background processes. Their Perito software has enabled the debt recovery company to organise their complaints better and ensure that the most pressing matters are dealt with first.

In the debt recovery industry, there is still a need for traditional snail mail as a physical letter is far more persuasive than an email that gets ignored in the inbox. During the recession it is important that all businesses operate as efficiently as possible. To this end, Adare is a company that effectively handles large volumes of mail, both by delivering the letters themselves, to speeding up the process of creating the correspondence in the first place. SmartEdit is a programme from Adare that Wescot have utilised to rapidly speed up the time it takes to write letters out, as many are fundamentally the same with some minor changes.

By updating their processes, debt recovery companies can remain on top whilst the industry changes.