Yabber Global

Arrears – regulators direction of travel

We often chat with our clients about the regulatory direction of travel; in our last blog we looked at how risk managers were mitigating increasing arrears risks post COVID induced interventions. Yabber News

This month we are aware that regulators are also turning their attention to the risk of increasing arrears.  This is not surprising; like collections professionals and risk managers, they are becoming increasingly concerned that senior managers are being lulled into a false sense of security because consumer credit and mortgage arrears remain close to historically low levels.  Despite these bullish views, all professionals in the sector are watching the unwinding of COVID induced government interventions very closely.  

In the UK, the FCA is applying increasing pressure to ensure that all lenders comply with its fair treatment of borrowers’ requirements, especially those in financial difficulty.  In these unique times, the regulator is keeping an even closer watch on the way vulnerable customers are treated.  There is a clear direction of travel including a requirement to establish and implement clear, effective, and appropriate policies and procedures for dealing with customers in arrears.  Proper governance and oversight is vital in balancing the needs of customers and shareholders in arrears management decisions, and this is where the FCA expects stakeholders to deliver effective forbearance and other protections to customers in financial distress.  

The FCA will continue to focus on good governance and oversight, including the requirements in the Consumer Credit sourcebook (CONC) and Mortgages and Home Finance: Conduct of Business sourcebook (MCOB) to keep lenders on track to satisfy their regulatory requirements.  

In this climate the adage “if you can’t prove what you say you said, you didn’t say it”, has never been more relevant.  This is where Yabber comes in.  We can help firms improve compliance, reduce costs and increase revenue while monitoring 100% of call centre interactions, including arrears and collection calls.  To learn more, arrange a demo of the system or simply have a chat, give us a call to find out how we can help.