TDX Group launches V+ services to manage vulnerable consumers with problem debt

TDX Group, the leading provider of data and technology-driven debt solutions for businesses, has launched the V+ range of services to support organisations in identifying, engaging and managing potentially vulnerable consumers.

The V+ services use a range of data sources, including TDX Group’s purpose built Financial Vulnerability Indicator score, to assess cases within a creditor’s customer base, highlighting those at risk of financial vulnerability, or those already in financial crisis.

TDX Group data shows that in the first four weeks of lockdown there was a three-fold increase in the number of consumers identified with short term vulnerability, and coronavirus was mentioned directly in more than half of conversations between consumers and the TDX Group specialist supplier panel.

V+ will enable companies to evolve their collections and recoveries strategies to suit this new environment, ensuring regulatory and government expectations are met to drive appropriate outcomes for vulnerable consumers in problem debt.

The V+ range of solutions are fulfilled through a curated panel of specialist Debt Collection Agencies (DCAs), managed through TDX Group’s own specialist conduct and oversight framework.

The V+ specialist DCAs recruit employees with a different skill-set, typically from health, social care and wellbeing backgrounds. The agencies provide extended training and are held to the highest standards by TDX Group to deliver a differentiated debt collection approach, focused on individual consumer circumstances. Remuneration is aligned with these standards, rewarding behaviours that reinforce the fair treatment of vulnerable consumers, rather than the traditional model linked to cash collections.

The language of all communications is tailored appropriately and delivered via the recipient’s preferred contact channels. Placement lengths are extended beyond typical strategies to allow time to reach the optimal outcome for both the consumer and creditor. Where necessary, consumers can be guaranteed access to a specific agent managing their case.

Antony Dear, Director of Solutions and Consulting at Equifax, said: “We recognise organisations need to redesign their collections strategy as coronavirus related furloughs, redundancies and reduced working hours increase the number of people in financial difficulty. Through V+ we can offer our experience and support to those companies who need it. V+ is the right solution when a creditor recognises that a regular collections process is no longer appropriate for their vulnerable consumers.”

Carlos Osorio, Director of Debt Recovery at TDX Group, said: “Earlier and better identification and treatment of vulnerable consumers help creditors exceed regulatory requirements, it also improves the customer experience giving them the opportunity to engage and resolve the situation. Businesses must use available data sources to check upfront whether a customer is in financial difficulty so they can then act in the best interest of that customer.

“This human approach to vulnerability works because the V+ panel is empowered and equipped to work flexibly with people in debt, to achieve the right outcome for their unique circumstances. We have complete comfort that customer interaction is of the highest quality. By using data, knowing customers better, and dealing with them more appropriately, we have the opportunity to change people’s lives for the better.”