INTEND2PAY.co.uk - more details
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INTEND2PAY is an independent organization that promotes responsible debt collection practices between creditors and consumers. Through its website, INTEND2PAY brings together creditors and consumers who pledge to communicate respectfully. Both creditors and consumers make promises to act in agreed ways. This alternative to traditional debt collection is less stressful for consumers and simpler for creditors. It aims to improve the customer experience and reduce mistrust in the debt collection process.
INTEND2PAY.co.uk - more details
- 1. INTEND2PAY “Supporting Responsible Debt Collection” INTEND2PAY is an independent body whose purpose is to support and promote responsible, respectful and considerate debt collection practices, for the benefit of Consumers and Creditors alike. Through our secure and confidential website (INTEND2PAY.co.uk), we bring together responsible organisations and their genuine customers, who, when joining INTEND2PAY, both make a promise to act in an agreed way. Together these two promises create a unique alternative to current debt collection communication. Less stressful and free for Consumers, simpler and less costly for Creditors, INTEND2PAY breaks down the mistrust and misinformation which can build up in debt collection, and improves the 'Customer Experience' for consumers. The 2 Promises The Consumer Promise Consumers with intent register at INTEND2PAY.co.uk, pledge their willingness to pay, and promise to keep to realistic arrangements. The Creditor Promise In a return promise, their Creditors who have joined INTEND2PAY agree to deal with the debt in a ‘proscribed manner’, which negates the need for some traditional collections strategies and significantly reduces the cost of collection. This ‘proscribed manner’ involves communicating with the Consumer only by email with a ‘customer service type’ approach consistent with someone with intent. Creditors also pledge to work within guidelines laid down by Regulatory Bodies such as the OFT and FSA.
- 2. How It Works The website is marketed by Creditors via letter, telephone and web, to find those customers with ‘intent’. Receptive customers register securely on the website, providing their name, account number, postcode and their email address. They pick out their creditor from the list of members, and their registration data details are then sent electronically to their chosen Creditor. The Creditor, who, by joining INTEND2PAY has promised to deal with these registered customers by email only, thereby segmenting them for a different type of collections action. Creditors who wish to publicly show their ‘Treating Customers Fairly’ credentials via an independent website become members of INTEND2PAY by annual subscription. Intent is proven by the timely payment of agreed amounts, which maintains the Consumers ‘right’ to remain in the scheme. Background to the development of INTEND2PAY.co.uk 1. Recent OFT guidelines on Debt Collection (November 2011) mean contact strategies for many creditors have changed or will need to change. 2. Customers are far more difficult to get hold of, and much time and money is wasted in call centres trying to generate Right Party Contacts. 3. Conversations are now longer, leading to diallers becoming less efficient. 4. Little reliable measure of ‘intent’ has found its way into scorecards and segmentation routines. 5. Over the past 2 or 3 years there has been increased governmental and legislative pressure to treat customers fairly. Compliance has become a major priority.
- 3. 6. Consumers are sometimes ill served by the ‘advice sector’. Debt Management and IVA sellers are profit making organisations. Money Advice, CAB etc have limited resources and funding. 7. Creditors who try to act fairly are ‘tarred with the same brush’ as those who don’t, since there is no current way to differentiate. All bad practice seems to makes its way into the media, but good practise does not. Consumer benefits of registering with INTEND2PAY The removal of collection letters and telephone calls from the process reduces the stress involved in dealing with debts. It provides more control over a Consumer's situation and therefore less need to resort to third parties such as Money Advice, CAB and Debt Management Companies. It keeps Creditors ‘at arms’ length’ and stops external bombardment by letter, phone etc. Customers have time to sort out their situation without what many see as harassment. It identifies and confirms a Consumer's intention to pay. It is easier for a third party such as a family member to help the Consumer, rather than having to obtain permission to talk about the account. It avoids expensive calls to creditors and also letter/postage costs. It gives confidence to Consumers ignoring their debt to do something about it. Creditor benefits of joining INTEND2PAY It facilitates more efficient and effective use of collectors’ time, and speeds up the contact process. Every collector action or response to these customers is to a ‘Right Party Contact’, without the need to wait for post to arrive, or finding the customer by phone.
- 4. Postage, SMS and telephony costs for these customers will be reduced substantially. Less customers will ‘bury their heads in the sand’, and more will start engaging in the payment process. Intent is defined by participation – this population becomes self-segmenting, and is not sent to DCA’s or for legal action. This in turn saves commission and legal costs. The remaining non-registered customers' collection strategies become much easier to determine. If they have been given the opportunity to stop collection letters and calls and have not taken it, they either lack access to a computer or internet phone, or have no intent – the latter being more likely. It allows different and more accurate provisioning for those customers on INTEND2PAY. It reduces the amount of shift work required for collectors. Less ‘old style’ collectors will be required, as dealing with these customers with intent could be carried out by customer service staff – potentially with different salary, recruitment and training costs. This group of customers has prime potential for rehabilitation and re-lending when their circumstances change. Fewer third parties will be involved in the collections process. There are PR opportunities in being seen to be using a ‘fair’, independent, transparent scheme which relieves pressure on the Consumer, particularly given the current trends in how debt is dealt with. The 'Promise' Creditors make when joining INTEND2PAY includes a pledge to adhere to 'T.C.F.' and OFT Guidelines, and the guidelines of other Regulatory Bodies. Complaint numbers are likely to be reduced. Valuable MI reporting will be available. It facilitates a new ‘across the board’ approach for Creditors, thus improving the reputation of debt collection.
- 5. Other potential consequences The service should receive support from Government bodies, as it reduces pressure on Consumers and encourages fair treatment. It promotes self-help, thereby taking pressure off the voluntary sector, and discouraging the fee- chargers. The fact that Consumers use the service free of charge is a major plus, as it allows more of their income to pay down their debt. Those in debt who do not intend to pay are further exposed, and will find it more difficult to ‘muddy the waters’ as a means of delaying or avoiding payment. ‘Heavy handed’ Creditors would also be more obvious. PLEASE NOTE INTEND2PAY is an independent organisation. It does not provide debt advice, nor does it take advertising. It simply brings together customers who intend to pay, with their creditors who are committed to treating customers fairly, and wish to be seen to be doing so. Creditor members subscribe to the INTEND2PAY service, registration is free to Consumers. Copyright Keith Ackerley, INTEND2PAY Limited December 2012