Improvements in creditor response times under new FCA regime

Harrington Brooks reports significant changes in creditor behaviour since the Financial Conduct Authority (FCA) began their new regime and also outlines plans for a smoother working relationship with the creditor community.

Our credit relations team ensure we have strong levels of trust and co-operation with creditors.
Our credit relations team ensure we have strong levels of trust and co-operation with creditors.

Since the advent of changes in the regulation of the consumer credit sector on 1 April 2014, we have found there to be a noticeable shortening of response times from creditors, especially smaller companies. Some are still lagging behind FCA guidance on turnaround times, which makes the job and responsibility of the credit relations team even more important.

Each month we manage more than £920 million of unsecured debts for over 75,000 customers and distribute £7.6 million to creditors, on behalf of our customers. With 64% of unsecured debt being written off at the end of an IVA and 89% of creditors freezing interest and charges (% by value of debt), it’s easy to see why having close relationships with creditors is so important to Harrington Brooks’ customer base.

With experience and regular analysis of the data exchanges, we ensure that potential issues are spotted and rectified quickly. Creditors trust the systems, service and delivery of information that we supply, to the extent that in the past they have asked us to pilot new ways of doing things, and then rolled these out successfully to the wider debt resolution community.

In the future we are looking to develop a “creditor portal” in the interests of processing transactions accurately at even faster speeds. In effect, every time we issue a notification of intended financial management plan it would be performed as a paperless data exchange, giving creditors increased security and access to information 365 days a year, 24 hours a day.

Darryl Matthews, Group Head of External Relations, said:

“As a team Harrington Brooks are passionate about the service we supply to creditors and customers. Our relationships with creditors are at an all-time high, and we have earned respect by investing time and energy. By participating consistently within important industry forums we have also challenged other bodies, processes and perceptions.

“We can already see improvements as a result of FCA regulation and there’s now even more focus for creditors to work with Harrington Brooks to take on board the customer agenda as well as their own. This focus has given us even more impetus to push for future enhancements, to ensure that we get the best outcome for our customers.”

If you are finding it difficult to pay your debts, or are struggling with contact and pressure from creditors, give our friendly advisers a call today.