In an ideal world....the good debt collection practices

[Joa]

The Money Advice Liason Group has recently published the document below, drawn up by both advisers and debt collectors. They would welcome you comments on it.

 

MALG - GOOD COLLECTION PRACTICES

 

INTRODUCTION

 

 

 

Good debt collection practices assist both creditor, debt collection agency and debtor. On this assumption there will be positive outcomes for creditors, debt collections agencies and debtors alike. People should be treated with courtesy and as they would expect to be treated themselves.

 

 

 

GENERAL POLICY STATEMENT

 

 

 

Codes of Practice for both advisers and collectors should be visible and transparent. Complaints procedures for both advisers and collectors should also be visible and transparent.

 

 

 

Communication channels should be kept open at all times and every effort should be made to continue to build on existing good practice and focus on strengths.

 

 

 

COMMUNICATION

 

 

 

Communication should always be two-way, open and transparent. Encouragement should be given for the receiving and giving of feedback. It is important to ensure that such feedback will be well received.

 

 

 

The difference between an offer and a proposal should be clearly understood. Some debtors cannot offer any repayment - it would help creditors to know from the start that there were no assets or income.

 

 

 

The use by one creditor of several collections agencies to collect the same debt causes frustration, confusion and time wasting.

 

 

 

Wherever possible when a debt is sold, case history information should be passed on.

 

 

 

Collectors should be encouraged to adopt a positive, courteous and professional approach to debtors and advisers as this will elicit better results than more aggressive collection techniques.

 

 

 

CONSISTENCY

 

 

 

Good collection practices should be fair, proportionate and include a uniformity of process. Wherever possible, standard forms should be used, eg the Common Financial Statement.

 

 

 

Advisers should ensure a full and accurate picture of their clients is given to enable collectors to make the correct decisions.

 

 

 

Collectors should accept The Common Financial Statement (CFS), its workings and payment offers. They should read and reply to letters and provide the adviser, when requested, with the accurate size of the debt.

 

 

 

Creditors and debt collection agencies should not assume that a money advice client will not pay.

 

 

 

TRUST

 

 

 

Advisors and collectors should get to know each other better, understand each other's practices and have the belief that each is trying to do the right thing. It is important to listen to each other and if there is a mistake correct it swiftly in the right spirit.

 

 

If you wish to make a comment on the above document, please write to [email protected]

I would like to ask you to use your common sense; this is a policy document so no pleas for help, no long rants, just facts as they are on the ground.