Payday Lenders failures in Debt Collection
Payday Lenders have come under fire a lot recently in the press due to their debt collection practices. The FCS (Financial Conduct Authority) has reviewed debt collection practices of payday lenders and found unfair practices in every one of them.
The review found that customers are being treated unfairly and in many cases these customers are being led into serious financial loss. These failures include;
• Not recognising customers in financial difficulty
• Not directing these people to relevant debt advice services
• Offering inflexible repayment options
Many of these issues had arisen from poor record keeping and failure to deal with complaints effectively.
Churchill Debt Recovery Solutions pride themselves on dealing with customers in a professional and fair way. We understand the need for debts to be collected in a timely manor but we also adhere to good practices and provide outstanding service to ensure that people with financial difficulty are treated with compassion and understanding.
Our staff are trained to a high level which provides a perfect balance of improving situations for our clients as well as those who find themselves in debt.
FCA review
Tracey McDermott of the FCA has pointed out that the Payday lenders who are failing their customers will have to start being held to account after the recent review found failings in debt collection practices.
“Our rules are designed to ensure loans are affordable; that customers who get into financial difficulty are treated fairly and that they are not pressurised into unaffordable and unsuitable repayment plans.
The FCA has also reported that it has been encouraged by the steps that are starting to be taken to review debt collection procedures, including changes to senior management and revisions of current procedures.
Churchill Recovery Services can help you to ensure that your debt collection procedures are fair and effective. For help with your debt collection please call on of our knowledgeable advisors on 0845 074 3748.