In the face of sustained economic strain, collections and complaints teams are feeling the pressure. With more consumers in financial difficulty and regulatory expectations rising, firms need to re-evaluate how they support customers before, during and after a missed payment.
In this post, we take a closer look at the current landscape – and identify areas where operational attention is needed the most:
Volumes Are Climbing, and so Are Customer Expectations
It’s no secret that late payments, arrears, and affordability-based complaints are all increasing – particularly across motor finance, credit cards, and buy-now-pay-later (BNPL) services. At the same time, customers are more aware of their rights and quicker to raise concerns, especially if they feel misinformed or unsupported.
Consumer Duty is Reshaping Collections
The FCA’s Consumer Duty is more than a policy shift – it’s a mindset change. Firms now need to show not only that they offer forbearance or help, but that those options were fair, timely, and clearly understood by the customer. The bar for “good outcomes” has moved.
Evidence and Insight Are Critical
Regulators are increasingly asking: Why was this decision made? Where’s the record? Firms need joined-up MI that links complaints, collections, vulnerability flags and outcomes. Root cause analysis (RCA) must feed back into both strategy and frontline behaviour.
Cross-Team Alignment is Now Essential
Collections, complaints, QA and risk teams can no longer operate in silos. The best-performing firms are investing in cross-function training, shared customer communications, consistent tone of voice, and aligned KPIs. Proactive actions help reduce repeat contact and improve customer trust.
Five Operational Focus Areas
- Early Identification: Prioritise early identification of financial distress and empower staff with flexible solutions, backed by policy.
- Customer Communications: Ensure communications to customers are easy to understand, avoiding jargon and assumptions when explaining key information.
- Audit Trails: Tighten audit trails for affordability and vulnerability decisions. A well-documented customer file enhances everyone’s capability to make the right decision and support customers.
- Complaints Management: Use complaints as a warning signal, not just a resolution step. Ensure you have controls and processes that support root cause analysis and facilitate learnings to be taken across all areas of the business.
- Resource Planning: Plan resource appropriately to deal with surges in volumes. Providing a rapid response to customers mitigates unnecessary escalation and further risks to vulnerability, whilst also ensuring regulatory requirements are met.
Elevate Your Collections and Complaints Approach
Beyond meeting regulatory demands, the goal is to build operational models that reflect real customer needs. Customers in difficulty need clarity, empathy and fair treatment.
Firms that can deliver this effectively will not only see a reduction in complaints but also build trust and loyalty with their customers in the process.
At Momenta, we have a wealth of experience to support firms in managing Collections and Complaints challenges with confidence. Our proven bespoke solutions help you navigate the regulatory complexity and deliver better customer outcomes. Here is what we do:
- Advise on the suitability of processes and procedures
- Provide a contingent workforce to support varying demand
- Deliver a full outsourced Managed Service
Partner with us to transform your Collections and Complaints function. Contact Momenta today to discuss your next steps.
