CM magazine Nov2021

CMNEWS
A round-up of news stories from the
world of consumer and commercial credit.
Written by – Sean Feast FCICM
Intrum’s return suggests success
in shift to outcome-based models
CREDIT management group Intrum has returned
to the contingency collections market in the
UK, suggesting a greater understanding and
acceptance of outcomes-based models over
cash. The company says it now offers a full
UK debt collection service, allowing clients to
benefit from its continuous investment in technology and
analytics as well as award-winning customer care. The move
complements Intrum’s established early arrears, white label
and debt purchase services.
UK MD Eddie Nott said there is demand from clients
for access to high-quality, bespoke collections systems,
technology and customer service on a contingency basis.
“The launch of the UK DCA service means we can provide
the full cycle of debt collection services to our clients, from
white label early arrears to contingency collections and debt
purchase. Clients can be sure their customers are in safe
hands, with the market leading customer care for which
Intrum is renowned.”
Speaking exclusively to Credit Management, Eddie
explained the reasons why Intrum left the market and why
now is the right time to return: “We left the contingency
market in 2010 at a time when the regulatory environment
was changing,” he says. “Margins were under pressure given
the cost of compliance was increasing but rates were not, and
we didn’t want to compromise on the levels of customer
care provided. We were also uncomfortable with a
commission model that prioritised cash collected as the key
measure of success.
“Over a decade later, the market has matured and creditors
understand and accept the costs of collecting debts in an
ethical way. Even in commission-based models, the focus
is on outcomes rather than only cash measures. There is
real value for creditors in refining the number of suppliers
they use across their customer lifecycle, from early arrears
through to contingent and debt sale – in terms of the cost
of oversight and auditing, for example. There are also
operational efficiencies by utilising a single supplier.”
In terms of the wider landscape, Eddie says that there has
been considerable consolidation and some players have been
forced to exit: “Despite a shift towards selling debt earlier,
creditors are keen to retain flexibility and we can offer that,
perhaps as a route into other services, such as white label.
With our brand, ownership structure and funding, we can
provide stability of service over the long term.”
In addition, Eddie says, the investment the business has
made in technology and tools, as a significant purchaser of
debt, is of real benefit when used in a contingency market:
“The DCA service gives creditors a chance to trial our services
and see the benefit of those tools in a different way.”
“The launch of the
UK DCA service
means we can
provide the full cycle
of debt collection
services to our
clients, from white
label early arrears
to contingency
collections and debt
purchase.’’
Eddie Nott,
MD-UK at Intrum
Advancing the credit profession / www.cicm.com / November 2021 / PAGE 5