Reviewing 2021…and looking ahead to 2022 in the collections & debt purchase sector

It’s now 18 months since I took over as chief executive of the collections and debt purchase sector’s only UK trade body, the Credit Services Association (CSA) - and as we reach the end of another turbulent year with all the challenges the pandemic continues to bring, I am immensely proud of our industry’s resilience and commitment to maintaining the highest standards.

Our annual UK Credit & Collections Conference (UKCCC) and inaugural CSA Awards in September, which was one of the first post-lockdown face-to-face events of its kind, told the story of innovation, integrity, and amazing staff dedication, flexibility, and customer service – in the face of quite extraordinary circumstances. CSA Member firms have consistently reported to us that their customer engagement has endured well and despite the withdrawal of Government pandemic support packages, collections rates (on the whole) have not been adversely affected and remain reasonable.

This has been achieved while continuing to lead the way in best practice treatment of customers. In fact, at a recent Money Advice Liaison Group (MALG) meeting, frontline debt advisers commended our member firms for being the best ‘creditors’ to deal with, particularly on behalf of vulnerable clients. When I have had the opportunity to visit member firms myself over the course of this year, I have heard many stories of amicable debt resolution, where customers, creditors and their collections agencies have reached mutually beneficial new arrangements. I have been constantly impressed by the willingness of collections agencies to go above and beyond to offer favourable repayment plan terms and forbearance to customers – and there are so many stories of amicable debt resolution that deserve to be told, and which would dispel many of the myths and misconceptions still lurking about the collections sector despite the huge progress that has been made.

At the CSA, our focus is on improving customer engagement, representing our sector to decision-makers at the highest level, and promoting excellence and integrity in standards across the industry. A key part of this is the provision of fit-for-purpose, high quality learning & development solutions, including the specialist Apprenticeship programmes we offer to CSA member firms and organisations in wider sectors to upskill their people in business-critical credit, collections, compliance, counter-fraud, and debt advice functions. And our recently re-launched Collector Accreditation Initiative (CAI) has been helping benchmark the capability of collections staff with the latest regulation and best practice. 2022 will see the roll out of exciting new training modules to further support skills development and talent attraction/retention in the industry and we look forward to introducing these to member firms in the new year.

Financial services regulators have also been increasingly busy, with proposals for a new ‘consumer duty’ and the prospect of the ‘statutory debt repayment plan’ for further consultation next year. Credit availability for the wider public requires a well-functioning credit cycle, which in turn requires a competitive collections sector. We continue to support moves to raise standards and protect consumers, but also to strenuously highlight the potential risks that double-digit fee and levy increases may have on the sustainability of collections specialisms.

There are many new challenges that we must face in 2022, including the growth of digital customer communications, Environmental, Social and Governance (ESG) reporting obligations, and inflationary pressures squeezing customer and business resources alike. At the CSA, we will do our utmost to champion the benefits of early engagement and dialogue as the means of solving problem debt and the removal of barriers that may impede conversations between skilled collections professionals and the customers they seek to assist.

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