The Closing of the Door, Part 1: The Impending End of Furlough and Forbearance

On 31 October 2020, furlough and forbearance will end. The government hopes this will restore a measure of normality to the UK economy, laying a foundation for recovery in 2021.

However, these changes are likely to trigger economic chaos and mass unemployment in the short term. According to a recent report by the think-tank Bright Blue, two in five (44%) companies with staff in furlough will have to make some or all of them redundant when the government withdraws its support. Less than half (48%) using the Coronavirus Job Retention Scheme expect to keep all furloughed staff on the payroll after 31 October. 9% expect to lay off most furloughed staff while 3% expect to make all furloughed employees redundant.

Beyond this, many retailers and other traditional businesses are unlikely to survive the difficult months ahead. The lockdown between March and June heralded the worst UK recession in modern history, with the economy shrinking by almost a quarter in the first six months of 2020 (Source: ONS). Looking ahead, one also has to factor the UK’s impending departure from the EU into the equation.  Although the exact terms of this are still uncertain, they might well inflict yet further damage on an already crippled economy.

Beyond such economic and financial factors, the virus itself is far from spent. Indeed, infection rates are steadily rising as winter approaches and the government is already suggesting it will not hesitate to reintroduce more stringent containment measures if they are required. The catastrophic impact of another prolonged lockdown on jobs and businesses is almost impossible to calculate.

Unprecedented Need for Collections

Considering the post-furlough situation with a dispassionate eye, it is obvious that an unprecedented increase in defaults on vehicle and asset payments is about to occur. Millions of redundant employees will be facing financial hardship and unable to meet their financial obligations. Many blue chip lenders will have to manage debt portfolios inherited from recently defunct lending companies, typically full of vulnerable customers presenting unusual arrangements and the most difficult circumstances. With the Financial Conduct Authority doing everything it can to protect such customers, banks and other major lenders will need a professional but caring collector to take their needs in hand as never before. 

Swift Asset Services have all the skills and knowledge to tackle the spate of collections due to begin in November 2020. We are experts in reengaging vulnerable customers with our clients and helping them to negotiate a realistic programme of repayment. Our tracing, resolution and recovery services are exemplary, as our figures demonstrate:

• 98% success rate on prime phase 1 instructions.
• We average a 3 day turnaround from instruction to recovery.
• 75% success rate on phase 2 instructions.
• 27% of instructions result in the customer paying the creditor in full as opposed to recovery.

Although we go to exceptional lengths for our clients, there is more to our service than mere professionalism. With over twenty years’ experience in the industry, we also take care to protect the customer’s rights in strict accordance with the FCA’s guidelines. This diligence is especially important during the present crisis, when the FCA is especially keen to protect vulnerable customers.

We keep meticulous records of every case via our secure client portal, be it the voluntary surrender of a single vehicle or a full fleet repossession. Treating customers fairly is key to all our practices and deeply embedded within the culture of Swift Asset Services:

• All our staff are fully conversant with current FCA guidelines and will refer any sign of potential debtor vulnerability to the lender prior to an enforcement action.
• We provide full auditing, reporting and real time case updates on your instruction via our secure client portal.
• We carry out stringent DBS and credit rating checks to ensure all our representatives are above reproach.
• Swift do things ‘by the book’ and always strive to prioritize the customer’s unique needs and concerns at every step of the recovery process.

Phase 2 Work at Phase 1 Prices

In fact, we are so confident we can deliver results in the post-furlough economy that we are willing to undertake Phase 2 collections at Phase 1 prices for selected new customers. Not only that, we are also offering Phase 3 collections at Phase 2 prices – all on our usual no-win, no-fee terms.

If this sounds like the answer to your needs in a time of uncertainty, please get in touch.

 ‘Swift Asset Services – A Safer Pair of Hands’