Debt management company warns creditors to prepare for increased activity

Debt management firm TDX Group has claimed that creditors should prepare for an expected increase in the activity of consumers suffering from financial problems as a result of Covid-19.

Carlos Osorio, UK debt collection manager at Equifax TDX Group, said the suspension of various areas of debt collection and enforcement provided only a temporary solution.

Without predicting an increase in the number of consumers needing help when collections continue, creditors will likely find it difficult to cope, Osorio added.

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“While the temporary halt in debt collection activities, in both the public and private sectors, has provided much needed respite, it does not solve the central problem of whether people will be able to pay when collections resume.” , Osorio said. .

“The box has been thrown on the road, and creditors need to predict the expected surge in business.

“The key question will be how to increase their staffing capacity quickly enough to prepare for the heavy workload of their collections teams.

“With offices and call centers requiring social distancing measures, the task of increasing staff and training becomes much more complicated and expensive. Upcoming issues include long wait times in the contact center and perhaps less efficient interaction with customers who need help.

“This will impact the quality of the collections business at a time when clients need quick and empathetic assistance.

“Creditors must build sufficient capacity and must not wait for collections to start to pick up, otherwise they may simply increase the pressure and stress on already financially vulnerable customers.”

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