The service is designed to help lenders avoid arrears and ultimately comply with recent government directives to keep the number of repossessions low. With an estimated 3 million fixed rate and discounted mortgages coming to an end in 2008 and 2009, an increasing number of customers risk falling into mortgage payment trouble. This is a problem dramatically compounded by increasing numbers of customers using credit cards to meet priority bills, including mortgage payments* .
Payplan’s arrears management service includes:
• A financial health check towards the end of a customers fixed rate
• Income and benefit maximisation
• Full support while customers pay their priority debts and arrears
• Full range of solutions to deal with their unsecured creditors
• Access to Free Debt Management plans
• Individual Voluntary Arrangements
By outsourcing to Payplan, which has 17 years of experience in the sector, lenders maximise the likelihood of sustaining arrangements with higher risk clients, allowing themselves to focus on broad, high level strategies. Through the use of this service, lenders can also enhance their commitment to treating customers fairly.
Payplan’s service includes the use of ‘Hotkey referral’. This is a free dedicated referral number which allows lenders to transfer clients directly onto a call with one of Payplan’s Helpline Department staff, who can advise customers on how to address their situation immediately.
Phil Bushell, Arrears Manager at Payplan, commented:
“2009 will be an unprecedented year for missed payments and arrears. In order to weather this storm, early intervention for vulnerable customers is vital.
“Without looking at the whole of a customer’s debt, traditional solutions such as payment breaks and capitalisation of arrears risk delaying and exacerbating future problems. Mortgage lenders are often unaware of the high levels of unsecured debt their customers are carrying separately, and yet this has a huge impact on the ability to repay their mortgages.
“This new service uses Payplan’s vast experience in understanding the needs of customers and lenders, and makes sure that a solution can be reached that leads to peace of mind for customers, and a continued revenue stream for lenders.”
