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In Focus Collections


Talking seriously


Policies which take mental health fully into account can increase debt recovery


Judy Terry Independent public relations professional judyterry@btinternet.com


A recent article stating that 50% of debtors suffer from mental-health issues, ranging from stress and depression to suicidal tendencies, was a timely reminder of how difficult a job the collections industry faces. It was also a timely reminder of the


excellent work which continues to be done by the Royal College of Psychiatrists and the Money Advice Trust to work with creditors, lenders, and debt collectors to improve recovery, whilst treating potentially vulnerable customers fairly.


Taboo So, their 2014 document, Lending, Debt Collection & Mental Health is an essential tool for anyone in the sector. Whilst summarising the findings, experiences and insights derived from a collaborative programme, it notes that mental health is a challenge, but no longer a taboo subject. In research going back to 2007, they


have analysed the issues – and benefits – in tailoring policies to recognise, understand and support mental wellbeing, when 59% of creditor staff report that, if they could take customer mental health fully into account, they would be more likely to recover debt.


Changed circumstances It is a fact that few people deliberately get themselves into debt, and changed circumstances is a major factor: relationship breakdown, job loss, illness. Encouraging customers to be honest


about their personal circumstances, in the knowledge that the information would be treated in confidence, enables debt collectors to support them through the crisis, and recover monies owed.


May 2019 The report concludes with a four-point


plan, which ‘considers the immediate indicators of progress or success against which creditors might be measured when working with customers with mental-health problems, or a mental capacity limitation’: l Policy is the obvious starting point – every creditor should have a written policy for working with customers with mental health problems and limitations, precisely describing what practical steps need to be taken, and clearly communicated to staff. Where debts are outsourced, reasonable steps should be taken to ensure these organisations also have a mental-health policy.


l The gap between policy and practice needs both internal and independent scrutiny – every creditor needs to devise mechanisms to measure, minimise, and understand the gap between its policy ambition and practical realisation. This should involve collaboration with


external bodies with relevant experience in mental health and mental capacity with the aim of developing long-term partnerships. lWhat has been learnt about mental health can be applied elsewhere – whilst good progress has been made, it should continue to be everyone’s business within the creditor sector. Using mental health as a blueprint for


In research going back to 2007, they have analysed the issues – and benefits – in tailoring policies to recognise, understand and support mental well- being, when 59% of creditor staff report that, if they could take customer mental health fully into account, they would be more likely to recover debt


l Effective policy needs capable staff – policies cannot be effectively delivered unless creditor staff have the necessary skills, knowledge, and confidence. Training should equip staff for the job,


rather than providing general knowledge that is not directly or easily applicable.


www.CCRMagazine.com


every customer circumstance or condition will help ensure the commercial needs of the business are met and that customers who are potentially vulnerable to financial detriment are treated fairly and sensitively.


Conclusion It is seriously worth sparing an hour to read this report; I have attempted to summarise key points, but cannot fully do it justice when the content is so far reaching. As a former county councillor, I am


only too well aware of hidden needs, and people’s reluctance to admit when they are at the end of their tether, so the strategies recommended here really do make essential reading. By implementing them lives can really be


changed, and businesses also benefit. A range of invaluable staff training


packages have been developed with key partners, increasing understanding: www.samaritans.org, www.mhdebt.info, and www.connectingwithpeople.org/courses. CCR


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