Tailored support and the need for flexibility in forbearance

One of the core tenets of the collections sector has long been the importance of understanding the customer’s circumstances and finding mutually agreeable solutions.

During the Covid-19 pandemic, we saw the regulator introduce prescriptive forbearance requirements. It is entirely understandable that the regulator would take such an approach facing unprecedented circumstances, but we are concerned that this could preface a move to a more prescriptive approach to forbearance in general.

Rather than simply set out our concerns about a move to prescriptive forbearance, with this paper we wanted to illustrate the importance of flexible forbearance and firms’ ability to understand a customer’s circumstances and tailor an approach to support the customer, whilst also exploring some of the problems that can be generated by prescriptive interventions around forbearance and supporting customers.

View the report

Press release

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