So why exactly are debt collectors a useful entity for the economy? We believe our industry provides what is a very useful service despite it not being the most beloved or glamorous industry around. See why in our latest blog.
 

Any business or person can experience debt. In general, debt is not something to be ashamed of or feared. When used properly, credit can enhance your life, business or circumstances. Well managed debt can improve your family life with a new home, car or appliance. Credit can purchase machinery to improve your businesses services. We must though be aware of what we are borrowing and our ability to repay. This is the border between “good” and “bad” debt.

If you haven’t received a call from AYOM or a company like ours, you can count yourself lucky. The reason being you have managed debt responsibly. What we mean by this is that a debt collector does perform a valuable and necessary service. Every day, we and those like us get in touch with those in debt to arrange full or part payments to resolve a situation. When you say “debt collector” to the average person, they may react in a negative fashion. However, therefore we believe debt collectors perform a very valuable function.

Why are debt collectors useful for the economy?

Debt collectors are regulated

Gone are the stereotypes. Forget what you think you know about debt collectors sending in “heavies” to drag out valuables. While high court enforcement does still have officers who remove goods, we try to use this as a last option. Modern tactics include discussion and assessing situations. We must of course work in a firm but fair manner as we are regulated by numerous entities. The most prevalent regulated is the FCA. The Financial Conduct Authority covers many types of consumer debt, meaning debts owed by the general public. They ensure we have systems in place to assess debtors and offer fair repayment terms. It also ensures we meet all legal criteria to bring about resolution. While the FCA does not cover business debt, many of their rules we apply to business cases as part of our “best practice”.

Speaking of best practice, AYOM is also part of another industry body. The CSA (Credit Services Association) also seeks to set rules on collection practices. The difference between the CSA and FCA is the CSA is voluntary. Members join and adhere to stricter guidelines than the FCA to ensure we meet even higher standards. We have been a member of the CSA for over half of our existence. We have been a member of the CSA for over half of our existence. This is to ensure we meet the highest standards possible in our everyday duties.

We keep money in circulation

One of the biggest benefits to the economy of our industry. If debt collectors all wound up this afternoon, a big chain reaction would happen. Money recovered using proper collection methods would cease and money which would have been repaid would still be uncollected. This can become a problem as companies or individuals may either write these debts off or be forced to wait much longer for repayment. From a business standpoint, writing off debt means money which should be benefitting the business is not available. For a person, forgetting about the debt could mean valuable cash not being spent on lifestyle and importantly, being fed back into the economy. The money would become wasted and not be available for reinvestment.

Last year, AYOM collected and paid out over £1,000,000 back into UK businesses. That is a million pounds which is now able to be reinvested in the economy. With financial fears surrounding Brexit, more capital for investment is key for so many businesses. Our goal this year is to double our investment and put even more cash back into the UK’s economy.

We help those with money problems

Yes, honestly!

The old stereotypes of debt collectors are dying. We provide a financial service and have duties of care for both sides. Of course, we represent our client, but we must act as the intermediary. Money can cause a lot of tension quickly, and we are there to diffuse that. We must also look at what the debtor’s situation is. We must look at their income, employment, family life and more. We do the very same with businesses. There is no point shouting and demanding money from people who cannot pay the amount asked.

It is with this in mind; we have a lot of options for payment plans. People can pay using several methods all at once or in smaller repayments. The skill in our job is to secure payment in a reasonable time. There’s no point accepting £1 a month for a £200 debt.

This part of our job can eb the most rewarding. The initial conversation may sometimes feel tense or off putting for those in debt. But we aim to settle them into affordable plans that ensure both sides are happy. Those who owe must still be able to live comfortably or businesses remain solvent. Bankruptcy is no good for either side meaning we take care in finding he right balance of repayment and financial freedom. Once payments are set up, we ensure we only get in touch to check how the plan is working every now and then, ensuring no unwanted letter or texts are received. Doing this helps many people and business owners take control of their own financial situation and stay on top of their debt. You only need to check our Trustpilot platform to see so many happy people on both sides of the fence.

Boost your cashflow

If you are a business or individual with debt needing repayment, AYOM are happy to advise. Getting your money back via firm, but fair means is our business. We hope to take some of the emotion out and act as a party you can trust. If you’d like more information on debt collectors and the roles, we play in handling your debts, you can get in touch here. Alternatively, you can call 0800 130 3357 or email enquiries@ayom.co.uk for more details.




Request a Callback