Regulatory Alerts2022-10-31
Arrears Management in Consumer Credit
The Dutch Authority for the Financial Markets (AFM) conducted an investigation into how consumer credit providers manage payment arrears to ensure vulnerable customers achieve a debt-free future. The report establishes five key principles for safeguarding customer interests: maintaining productive contact, basing solutions on the specific financial situation, ensuring high-quality resolution policies, empowering employees, and aligning collection partners with customer interests. The AFM expects providers to implement these standards, utilizing behavioral insights to overcome customer inertia and provide sustainable, empathetic financial solutions.
Share