Bob Dylan once sang “The times they are a changing”, I can think of no better statement to describe the present landscape of the debt resolution industry and the way in which the relationship between debt solution provider and creditor is developing.

Creditor Climate 2013

In 2012 I wrote about the creditor climate and the difficulties we experienced in communicating with certain companies, one of which was Barclays. Fast forward to the present day and things could not be any more different. We have developed an excellent relationship with Barclays whereby we communicate completely electronically and all our queries are answered within the same week.

Barclays are not alone in building up these processes;

the vast majority of companies we deal with are now responding positively to our requests for improvements and also suggesting them themselves.

In the past where we were only able to send our client’s payments to their creditors by cheque, 99% of our monthly payment distributions are now made by BACS (Bankers’ Automated Clearing Services) meaning the funds are transferred directly into their company accounts avoiding any delays.

There still are some companies who are resistant to changing and working alongside us, these companies do not recognise the benefits of moving with the times. There are collections companies who still use techniques that involve manipulating a debtor’s fear of court action and collections charges to bully them into repayment plans which do not meet the debtors need for financial rehabilitation.

Debt Management Protocol

With the impending Debt Management Protocol due to come into effect very shortly and the Financial Conduct Authority due to begin regulating all types of consumer credit activity, creditors, debt collection agencies and debt solutions companies who are not willing to change, face extinction. As the famous song also says:

you better start swimmin’, or you’ll sink like a stone”.

We for one welcome the prospect of the cowboys of our industry being washed away for good.

All of this change and potential progress has a huge beneficial impact on one group of people especially – those individuals with debt who have had an unexpected change in circumstances and have sought professional help to get their lives back on track.

They are the ones who will receive the correct advice on the most appropriate debt solution that suits their situation and enjoy a service free of unnecessary delays.