Debt Management Strategies from Wescot Credit Services

As CEO of Wescot Credit Services Paul Jenkins has a wealth of knowledge and expertise relating to the debt collection market in the UK.  In response to a recent request for his thoughts on how banks specifically could manage debt more effectively moving forwards, he was able to identify some strong strategic paths that could help.  

Most banks have, over the years, acquired a variety of high-risk assets.  As part of a general portfolio in more stable times these assets have been valuable.  In today's economy too many of these assets represents an unacceptably high level of risk.  Disposing of some is a strategy that not only removes a degree of the risk from the banks, but also releases much needed capital back onto the balance sheet.  This is a responsible approach that will also do much to elevate the banks in the eyes of the regulators.

Wescot knows that compliance has become a key element of any bank strategy since the collapse.  Regulators and legislators are just looking for reasons the clamp down hard on risky behaviour.  One of the best ways for banks to alleviate this pressure is to actively demonstrate an awareness of and dedication to the principles of TCF, or Treating Customers Fairly. 

If banks can flow these principles into their debt sale, collection and recovery processes the benefits will be two-fold.  First, the regulators will be satisfied, and second, a focus on good procedural practice will deliver better all-round results to the bank.  This should apply not only to internal policies, but also up and down the supply chain.  Any organisation involved in assisting the banks in their debt management should as a default embrace TCF principles at their core.

Finally, the wholesale adoption of the requirements of Basel III by banks will do much to engender confidence in the ability of the banking sector to respond to criticism in a positive manner.  To protect their assets from future fluctuations in the sovereign debt markets, banks need to ensure that their equity and capital levels remain healthy.  Disposal of high-risk assets and more effective, customer-focused debt management are key enablers of this strategy.

Wescot have over 40 years of experience in debt collection, and their own strategic approach to risk management allowed them to weather the storms of the last 5 years relatively unscathed.  Banks seeking to re-establish confidence and protect their future positions may be wise to consider these suggestions for risk management put forward by one who knows.

Wescot: ethics and compliance are central to success

Wescot Credit Services Ltd is a thriving company. Initially based only in Scotland, the company has expanded its operations to cover the whole of the UK and now has three debt collection agencies, in Hull, Glasgow and Saltcoats. With over 650 employees, the company is connected through its cutting-edge technologies; a virtual call centre which is available to clients and debtors 24 hours each day. Operating predominantly within the telecoms, utility and media sectors, Wescot’s impressive client list includes blue chip companies such as HSBC, Barclays, Lloyds Banking Group and Royal Bank of Scotland as well as a number of important new clients within the public sector.

With a strong track record in offering a total debt-management service, from debt recovery, tracing, and debt purchasing through early stage, collections outsource, to litigation and enforcement, this company is well positioned to continue its expansion. Particularly in a challenging economic climate, handing over the management of debt to a company like Wescot enables clients to focus attention upon expanding their customer-base, improving service and maximising cash flow and profits.

An ethical company, Wescot prides itself on maintaining professionalism and quality, and constantly strives to improve upon the services it offers to its clients. The debt recovery industry is today subject to considerable regulation, and Wescot not only supports this tightening of control, but has played an active role in shaping the regulation through consultation and lobbying. Whilst the company’s primary objective is to facilitate arrangements between its clients and individuals whose accounts have fallen into arrears, a commitment to compliance is clearly essential to ensure that debtors are treated with dignity and fairness.

Wescot has incorporated the principles of the OFT’s Debt Collection Guidance into all its activities and processes, and has set up a stringent auditing mechanism to monitor liaisons between its employees and the public. Also central to the company’s processes are the FCA’s ‘Treating Customers Fairly’ principles, and all employees are required to pass annual compliance tests. The company supports a number of charities within the free advice sector and actively encourages debtors to seek financial advice.

Safeguarding the interests of its clients' companies, whilst at the same time ensuring that debtors are treated fairly is not easy, but through Wescot’s commitment to ethical standards and its stringent approach to compliance, it has achieved that balance, and at the same time enhancing its enviable position as industry market leader.