Corporate Policy Handbook

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Est. 1972

Arrears & Collections Policy Handbook 2013-14

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Arrears and Collection Policy Version 1, published October 2013

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Table of Contents Chapter One: General Customer Charter Responsible Lending Laws Which Regulate Our Business Types of Laws OFT Debt Guidance 2003 Consumer Credit Act 1974 & 2006 Consumer Protection of Unfair Trading Regulations (CPRs) 2008 Description of Goods Acts Data Protection Act 1998 Consumer Protection Act 1987 Complaints Payment Methods Meter Direct Debit PayPoint Credit & Debit Card Payments Cash Cheques Collections Lifecycle Process Arrears Measurements Arrears Responsibility Arrears Control Process Automated Activity Payment Control Units (including Optica)

8 8 11 11 12 15 16 17 17 17 22 23 23 25 31 32 33 33 34 35 36 38 39 41

Chapter Two: Customer Account Manager (CAM) Field Roles & Responsibilities Assessment & Underwriting CAM Weekly Planner Collections: On Round Making Collections Maximising Revenues Banking Arrears Management Customer Types Why Do Customers Go into Arrears?

Other Reasons for Arrears Debt Management Tools Home Visits Notepad

48 49 50 51 53 57 58 62 63 64 66 73 75 78

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Contents

Tagging Arranged Payment Schedules Telephone Calls

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79 80 82

Chapter Three: Field Debt Manager (FDM) Field Roles & Responsibilities Arrears Decision Maker Deferment Fresh Start Refinance (FSR) Customer Returns & Company Terminations Company Returns

88 89 90 91 93 95

Chapter Four: Field Operations Manager (FOM) Field Roles & Responsibilities Courtesy Calls New Business Courtesy Calls Debt Resolution Automated “Critical Care� Courtesy Calls Scheduling FOM Weekly Planner Debrief The Monday Debrief The Midweek Debrief The Daily Debrief Weekly Debt Review Tracing Category 39 Write-offs Customer Refunds

102 103 103 103 105 106 109 110 112 116 118 120 123 124

Regional Manager (RM) Field Roles & Responsibilities How PCP Impacts on Profit & Loss RM Weekly Planner RM Weekly Debt Review Early Write-offs

128 129 130 131 132

Appendices Appendix 1: Category 2 Meter Locking Letter Appendix 2: Category 4 (Arrears Increasing) Appendix 3: Category 4 (Maintaining or Reducing Arrears Only) Appendix 4: Category 11 Default Notice Appendix 5: Category 20 Arrears Appendix 6: Regulatory Information (Arrears) Appendix 7: Regulatory Information (Defaults)

136 137 138 139 140 141 142

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Chapter One

General

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Customer Charter Responsible Lending We believe in responsible lending to all customers.

We will: • Ensure all marketing material is clear, transparent and complies with all legislative requirements.

• Ensure product pricing is comparable and competitive against other companies in the sector.

• Carry out an assessment of affordability in order to establish that customers can afford to repay the loan in a sustainable manner throughout the term of the agreement, including completing a full income and expenditure check before purchase.

• Encourage customers to consider whether hire purchase is the best option for them and signpost them to independent sources of information concerning how they can improve their credit rating.

• Provide a detailed assessment to validate the application, residency and income status.

• Cap all new customer loan repayments to 20% of disposable income.

• Provide the customer with a clear explanation of the terms of the agreement and also explain their rights and obligations under the agreement.

• Provide multiple payment methods that best suit, to include: home collection, weekly or monthly Direct Debit and PayPoint with discounts offered where payments are made by electronic means. In addition we will offer further discounts on purchases made by existing customers from time to time along with payment method discounts.

• Provide detailed quotations for modified and parallel contracts demonstrating the impact of each on both the weekly and total amount payable, allowing the customer to make an informed choice. Visit or contact the customer on a regular basis to assess the customer’s continued ability to make their payments; monitoring any change in financial or personal circumstances and offer assistance where necessary.

• Allow customers up to thirty days to withdraw from the agreement without the need to give a reason and without charge.

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General: Customer Charter

We believe in helping customers during difficult times.

We will: • Never charge late fees as we believe that late fees further exacerbate any arrears position.

• Treat all customers who fall into arrears with empathy and respect, offering a number of options to assist customers including alternative payment schedules, reduced and or partial payments when required for a temporary period or permanent period.

• Direct all customers requiring assistance to free organisations that can help, such as the Citizens Advice Bureau or the national debt line. Details of these organisation and others will be found on the company’s website and in all its marketing literature.

• Deal promptly and fairly with any complaints that the customer may have and will inform customers of their right to contact the Financial Ombudsman service if the complaint has not been resolved to their satisfaction.

• Be sensitive to any physical and mental health problems customers may have. We understand that any given situation may be unique and will be handled with empathy, care and respect.

• Have appropriately trained employees who will respond accordingly, particularly when dealing with complaints and arrears management.

We may need to ask for medical information and professional health assessments to ensure we carry out the correct course of action for each case.

• Provide free death benefit. In the event of a customer’s death we will write off the remaining balance and all products left to the customer’s estate.

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We believe in being open, honest and transparent with all customers.

We will: • Include all charges upfront in the APR, including: the cost of arranging the loan, the cost of collection and the guarantee of no late penalty/fee charges and all interest payments.

• In any marketing material, for all products include the manufacturer’s model number, the cash price, the weekly price when purchased on credit, the total amount payable, the terms of the agreement and the representative APR. • In any warranty or insurance material provide clear guidance on customer’s statutory rights and in addition where multiple products are covered to alert customers to the possibility that a single home contents policy may be a cheaper option.

• In accordance with legislation, issue annual statements detailing payments, outstanding balances and costs for any additional optional warranty and insurances.

• Provide ad-hoc statements outside the annual cycle, on request and free of charge.

• Respect personal information supplied to the company by customers and observe a strict duty of confidentiality about their personal financial affairs and shall not disclose any such details to any third party, except where we have your consent or are required to by law.

• Conduct Mystery Shopper tests in each region on an annual basis to ensure compliance with our responsible lending guideline and all other customer facing business processes.

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General: Customer Charter/Laws Which Regulate Our Business

Laws Which Regulate Our Business Dunraven Finance Limited has an obligation, like all businesses, to operate within the confines of the law. Failure to do so could lead to Dunraven Finance Limited being fined or, in extreme cases, the company could lose its credit licence. This would ultimately lead to the business being forced to close down and therefore a loss of jobs.

Dunraven Finance Limited is a responsible business with good business practices; it takes its obligations very seriously and forbids any colleague from contravening any of the laws that regulate our business.

The policies and procedures that Dunraven Finance Limited issue are designed to ensure that colleagues comply with the law. These policies will be updated to reflect any changes in the law. It is your responsibility to ensure that you comply with the policies and procedures.

Both the company and any individual concerned can be prosecuted if found breaking the law, whether the offence was intentional or not.

Should a colleague fail to comply with the policies, procedures and the laws that regulate our business, disciplinary action may be taken, which could result in dismissal.

Types of Law Two types of law are established by Acts of Parliament to protect and regulate.

Criminal Law Generally this protects ordinary people against violent acts or dishonesty. It is worth noting that road traffic and some business law offences can be tried under criminal law. Criminal law is enforced by The Crown, which includes the Police, Customs and Excise, Trading Standards and the Office of Fair Trading. Any prosecutions would be handled by a magistrate in a criminal court.

Civil Law This law generally deals with disputes arising between two parties. An example in which civil law would prevail is a breach of contract. Any cases would take place in a civil court.

Dunraven Finance Limited has to be mindful of both types of law, so too must its colleagues who must work within the confines of the law.

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There are a number of laws that regulate our business. Where Collections and Arrears Management are concerned, we have: • • • •

OFT Debt Collection Guidance 2003 (updated November 2012).

Consumer Credit Acts 1974 and 2006.

Data Protection Act 1998.

Consumer Protection for Unfair Trading Regulation 2008

Dunraven Finance Limited forbids any colleague from contravening any of the laws that regulate our business.

OFT Debt Collection Guidance 2003 The OFT has laid out guidelines on what it considers to be unfair business practice. To adopt an unfair business practice will place the company’s credit licence in jeopardy. The law allows “reasonable” action when trying to recover a debt; this is anything not considered to be harassment. Both the Office of Fair Trading and Trade Associations (run by the credit industry) have produced guidance on what activities may be considered harassment and should therefore be avoided by creditors.

The following list is taken from the Debt Collection Guidance for holders of consumer credit licences.

“It is unfair to communicate, in whatever form, with consumers in an unclear, inaccurate or misleading manner” • • • • • •

Letters that look like court claims Not making it clear who the company is or what their role is (e.g. pretending to be a bailiff ) Unhelpful legal language Not giving balance statements about the debt when asked Contacting individuals at unreasonable times when asked not to Asking individuals to contact us on premium rate phone numbers.

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General: Laws Which Regulate Our Business

“Putting pressure on debtors or third parties is considered to be oppressive” • Contacting individuals too frequently. It is deemed reasonable to make up to six attempts at contact per week. This may be done by phone calls or visiting the customer three to four times in a day until contact is achieved. All attempts should be note padded.

• Pressurising individuals to sell property or take out more debt to pay off the debt to you.

• Using more than one collection company at the same time or not telling individuals when their debt has been passed to another company.

• Pressurising individuals to pay in full or in large instalments they cannot afford.

• Making threatening gestures or statements.

• Ignoring disputes about whether individuals owe the money.

• Trying to embarrass individuals in public or threatening to tell a third party about the customer’s debts, a neighbour or family member for example.

“Dealings with debtors are not to be deceitful and/or unfair”

• Sending letters addressed to “the occupier” or discussing the debt with someone without knowing if they are the customer.

• Refusing to deal with an adviser acting on their behalf.

• Not accepting reasonable offers or passing on payments they make.

• Refusing to freeze action if they dispute the debt.

“Charges should not be levied unfairly”

• Claiming collection costs when the original credit agreement didn’t allow this to happen and making the individual think they are legally liable for the costs.

• Not putting the specific amounts that can be added for collection costs in the original credit agreement.

• Adding unreasonable charges.

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“Those visiting debtors must not act in an unclear or threatening manner” • Employees must carry ID at all times.

• Employees should explain the reason for any visit and give individuals notice of the time and date they will call where possible.

• Employees shouldn’t visit if they know the individual is ill or vulnerable and if they find they are unwell or distressed they should leave.

• Employees should not enter an individual’s house if they do not want you to and should leave when asked.

• Employees should not visit individuals at work or other public places such as a hospital (unless requested to do so by the customer).

• Employees should not call at unreasonable times or intervals (before 8am and after 9pm Monday–Saturday, anytime Sunday), unless by prior arrangement with the customer.

“Those contacting debtors must not be deceitful by misrepresenting their authority and/or the correct legal position” • Claiming or inferring to work for the court or as a bailiff.

• Implying action can be taken that is not legally possible. An example of this would be implying that we will take an individual’s property.

• Using a business name or logo that implies we are a government body.

• Implying that court action has been taken against the individual when it has not or can legally cannot. For example, referring to bankruptcy or sequestration proceedings when the balance is too low (less than £750) to qualify for such proceedings or claiming a right of entry when no court order to this effect has been granted.

• Implying that not paying their debt is a criminal offence.

• Threatening to take court action in England/Wales if you live in Scotland or the other way round.

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General: Laws Which Regulate Our Business

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Consumer Credit Act 1974 & 2006 Credit providers and brokers are regulated by the Consumer Credit Act. The law requires credit providers to exercise care when asking a customer to take out a credit deal and when dealing with problems once they have entered into the deal. To aid regulation, businesses are required to hold a Credit Licence, issued by the Office of Fair Trading.

The definition of ‘Credit’ in the Consumer Credit Act 1974 is as follows: “Credit includes a cash loan and any other form of financial accommodation.”

A Hire Purchase agreement is a financial accommodation between Dunraven Finance Limited and our customer, which is why we are governed by this law.

Customers must be kept informed of the state of their accounts, especially in relation to arrears and defaults.

The OFT have issued guidance on the fitness requirements. This relates to whether a business is fit to hold a credit licence and evaluates the licence holder's future competence in addition to its past conduct. BAYV could not operate without a credit licence. The OFT also has strong powers to investigate suspected cases of misconduct and to apply a wide range of sanctions, including fines of up to £50,000 or further conditions on the credit licence for breaches of licence requirements. The Act also established an independent Consumer Credit Appeals Tribunal, as part of the Tribunals Service to deal with appeals against licensing decisions.

The EU Consumer Credit Directive 2010 was implemented into UK Law on 1st February 2011. The directive introduced various changes into consumer credit laws. These included: • • • • •

Revised documentation on credit agreements.

Pre-contract information.

New rules on advertising.

The need for creditors to give adequate explanations about the credit product.

Requirements around responsible lending and affordability.

The Hire Purchase Agreement Goods are sold by the retailer to the credit provider but the credit provider agrees to sell the goods, as owner, to the customer on the condition that all the payments due are made. Title in goods (the ownership of the goods) does not pass to the customer until the customer has fully paid the contract.

The majority of our customers choose to take advantage of our flexible Hire Purchase scheme and are afforded protection under the Consumer Credit Act 1974 and 2006. Therefore, all debt related issues are strictly regulated. Failure to comply with debt procedures may lead to prosecution. Such prosecution could lead to severe consequences for both the colleague who commits the offence and the Company. Fines are limited to £50,000 per misdemeanour however under the FCA they will be unlimited and the company could lose its credit licence.

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Consumer Protection of Unfair Trading Regulations (CPRs) 2008 As a company providing credit to consumers, Dunraven Finance Limited is afforded rights under the Terms and Conditions of the Hire Purchase Agreement.

These rights require the person(s) who we enter into business with to honour the payment terms of their contract. However, it is important to note that we must not fall outside of the law when trying to enforce our terms and conditions through our collections/arrears process.

We also have legal responsibilities, the CPRs ban companies in all sectors from using unfair commercial practices towards consumers, and apply to all practices that occur before, during and after a contract is made. If customers are treated fairly, then the company is likely to be complying with the CPRs. The CPRs contain a general prohibition on unfair commercial practices and a prohibition on commercial practices that are misleading and aggressive. They list 31 practices that are prohibited in all circumstances because of their inherently unfair nature, many overlap with previous legislation covered including ignoring a customer’s request for you to leave their home and not return, and making persistent and unwanted demands by telephone, fax, email etc.

The Consumer Protection of Unfair Trading Regulations (CPRs) clearly identifies specific practices and conducts that are unacceptable and would therefore constitute an offence. As a colleague of Dunraven Finance Limited you must accept responsibility to act within the confines of the CPRs. The CPRs also makes it an offence when personal behaviour, taken together the Company’s actions, constitutes harassment. However, the regulations also state, “You can do anything which is reasonable to secure the payment or to enforce the liability by legal process”.

Colleagues should note that anyone found guilty of breaching the CPRs is liable to be convicted and fined. This policy document is designed to protect colleagues from falling foul of the law.

To decide if a practice is aggressive, consideration will be given to use of threatening or abusive language or behaviour, the timing and location of the incident and any threat of taking action that cannot legally be taken.

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General: Laws Which Regulate Our Business

Descriptions of Goods Act The general provisions of making it an offence to mislead customers about goods and services under the Trade Description Act have been replaced by the Consumer Protection from Unfair Trading Regulations 2008. The CPRs prohibit misleading actions and omissions which cause or are likely to cause the average consumer to take a different decision in relation to a product. A misleading action will occur when a commercial practice misleads through the information it contains, for example giving false or deceiving information to a customer.

Under the CPRs, traders are prohibited from providing false or deceiving information about the main factors consumers are likely to take into account when making decisions relating to the product. This includes information relating to the price and the main characteristics of the product.

Data Protection Act 1998 Under the Data Protection Act, it is an offence to disclose any customer information with a third party. Should a customer choose, the act gives them access to any personal information that we may hold on file, both manual and computerised. The act protects the customer against written, verbal and electronic disclosure of their information. It is therefore extremely important that you avoid sharing or discussing anything concerning a customer with anyone other than the actual customer.

The law puts the onus on the company to establish whether the individual involved in communication is in fact the customer. Information cannot be shared, even with the customer’s partner, unless prior written authorisation has been obtained and proof of this is available. If their partner or spouse is present and they ask you questions about the account you must politely refuse, even if they say that they have been given permission. We must never collect from an address if only a minor is present. If a minor answers the door you must politely enquire if an adult is present, if not then establish when an adult will be back and arrange to call then. Buy As You View will not collect from any property where there is not someone aged 18 or above present.

The law also states that any information that we do hold must be relevant to our business and factually correct. The information held must also be kept up to date.

From time to time, customers may choose to consult a third party, such as the Citizens Advice Bureau or a solicitor. If this occurs then it is our responsibility to seek written consent from the customer before disclosing any information. Only once written approval from the customer is gained can we discuss their account with the permitted party.

Consumer Protection Act 1987 The aim of the Consumer Protection Act is to help safeguard the consumer from products that do not reach a reasonable level of safety. The main areas dealt with can be described as Product Liability and Consumer Safety.

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Product liability The Act allows injured persons to sue producers, importers, and own-branders for death, personal injury or losses on private property valued above £275. The injured party must be able to show that on the balance of probabilities, the defect in the product caused the damage. Prior to this Act, the injured party could only sue the supplier under the Sale of Goods Act. Defective products are defined as being products with which the safety is not such as persons generally are entitled to expect. On the other hand, a product will not be considered defective simply because it is of poor quality or because a safer version is subsequently put on the market.

Consumer safety Regulations require producers and distributors to take steps to ensure that the products they supply are safe, that they provide consumers with relevant information and warnings, and that they keep informed about potential risks.

Safe products are defined as being products which, under normal or reasonably foreseeable conditions of use, including duration, present no risk, or a minimum risk, compatible with the product’s use and are consistent with a high level of protection for consumers.

As part of continuous training and development, all colleagues will be required to attend a yearly refresher course on laws that regulate the business and therefore increase their awareness of how to manage and support customers in arrears.

Mental Health and Consumers Mental health problems/disorders are not the same as a lack of mental capacity—a borrower could have a mental health problem but still have the capacity to make relevant financial decisions. A contract is not legally binding if the party does not have mental capacity.

When dealing with debtors who suffer from mental health problems, the OFT’s Irresponsible Lending Guidance suggest that creditors pay attention to the Money Advice Liaison Groups (MALG) ‘Good practice awareness Guidelines for Consumers with Mental Health problems and Debt’.

Consumers with mental health problems are nearly three times more likely to be in debt than others. The term mental health problem refers to a range of mental experiences that can limit a consumer’s ability to cope with day to day living.

Consumers suffering from mental health conditions can experience financial difficulties due to a range of factors such as: • Lack of money management skills • Reliance on benefit income

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General: Laws Which Regulate Our Business

• Fluctuations in income due to inability to work • Difficulties in communication.

The MALG guidance provides guidelines for creditors who are dealing with debtors who suffer from mental health problems (not all guidelines will be relevant to collectors).

Guideline 1: Creditors should have procedures in place to ensure that people in debt with mental health problems are treated fairly and appropriately.

Guideline 2: Staff should be trained on the reciprocal impact of mental health problems and people’s ability to manage money and debt.

Guideline 3: Creditors, advice agencies and health and social care professionals should work in a joined-up way.

Guideline 4: Creditors should have procedures in place to accurately record relevant information on client files and manage accounts appropriately.

Guideline 5: Creditors should establish referral mechanisms to ensure targeted help is offered to consumers with mental health problems or those acting on their behalf.

Guideline 6: Where a mental health problem has been notified, creditors should allow a reasonable period for advisers to collect evidence and present it to the creditor.

Guideline 7: Creditors who outsource debts to debt collection agencies should ensure that they are satisfied that such action is consistent with MALG guidelines, and relevant codes of practice.

Guideline 8: Where the debt of people with notified mental health problems are sold, the creditor should wherever possible endeavour to ensure that the purchaser complies with the intention of the MALG guidelines.

Guideline 9: When a creditor is made aware that a consumer has a mental health problem, they should only initiate court action or pursue enforcement through the courts as a last resort, and only when it is appropriate and fair to do so.

Guideline 10: Give consideration to writing off unsecured debts when mental health problems are: long term, hold out little likelihood of improvement, and are such that it is highly unlikely that the person in debt would be able to pay their outstanding debt.

Guideline 11: Should a person’s DLA (disability living allowance) and AA (attendance allowances) award be added towards disposable income for the purposes of paying off debt?

Guideline 12: (applicable to advisers not creditors) Advisers will provide creditors with evidence to confirm a client’s debt and mental health status that is proportionate to the type of action requested from the creditor.

Guideline 13: Creditors will accept evidence provided from an agreed list of practitioners.

Guidelines 14 and 15 are not relevant to creditors.

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What Should Creditors Do About Mental Health?

1. Deal with disclosure.

1. Acknowledge For example “Thanks for sharing this information, it will help us to deal with your account better”

2. Inform Inform the customer how their information will be used, stored and shared

3. Request Consent Request the customer’s consent to record information about their mental health

4. Ask • Does your mental health affect your financial situation • Does it affect your ability to deal or communicate with us as a creditor • Does anyone help you manage your finances?

5. Signpost • Specialist team or senior staff member in the company • Free Money Advice agency: Citizens Advice etc.

• NHS Direct, for practical/emotional support

2. Encourage disclosure, improve recovery rates.

Not knowing about a customer’s mental health problem is a missed insight for creditors staff. It is recommended that creditors take steps to encourage customers with a mental health problem to disclose this.

Explain how information about customers’ mental health will be stored. Such an explanation can be included in standard ‘how we use your information leaflets’ and Privacy notices.

Giving frontline staff the skills to identify the warning signs of mental health problems and broach the issues sensitively with customers.

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General: Laws Which Regulate Our Business

3. Include mental health in organisational policies.

It is recommended that: • Creditors should have a written mental health policy.

• The policy should address each of the ten issues contained in this section.

• The policy reflects other legal or professional frameworks that need consideration.

4. Give staff the skills to deliver these policies.

Training needs of staff will vary—mainstream collections staff for example require brief training whereas specialist staff would require detailed guidance.

5. Use specialist team or staff member.

In certain situations, help will be needed from a specialist team (could be management) or staff member whose role is to work with customers and complex cases.

6. Use medical evidence to aid decision making.

Obtaining medical evidence may not be necessary for every customer who discloses a mental health problem.

Medical evidence may be necessary when there are unanswered questions following a discussion with a customer.

7. Work with third parties.

It is recommended that where a customer discloses a mental health problem, creditors should routinely ask if they are receiving any support from relatives or friends and if appropriate signpost them to third party support agencies. Where customers nominate a third-party individual or agency to deal with their account, creditors should suspend contact with the customer as early as possible.

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Complaints Customers have the right to make a complaint to Trading Standards or the Financial Ombudsman. Many of these could be prevented by better communication between CAM, management and customers and also by prompt resolution of concerns and enquiries.

Last year all complaints referred to the Financial Ombudsman Services were found in our favour. This is because we have solid policies and procedures and therefore it is important that they are adhered to.

Failure to contact

Service repair

Meter collection

Faulty goods

Account query

Delivery query

Behaviour

Product quality

Wrong information

Damaged goods

Service failure

Misccellaneous

Failure to deliver

Ombudsman complaint

Property damage

Every one of the above could result in a customer refusing to pay and becoming a Type 2 customer (refer to Arrears section). This is within our ability to prevent through improved communication and follow-up. Refer to the complaints policy for full details.

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General: Complaints/Payment Methods

Payment Methods BAYV provides customers a choice of different payment options to best suit their preferred method of payment. These are:

Meter Cash is the traditional method that people use to make their payments. The cost of providing a personal in home service is higher than with Direct Debit and PayPoint because the CAM has to call more frequently. This higher cost of collection is reflected in the higher APR. Cash payers will have the meter set to best suit their viewing habits; this may be standard Hours per Pound or Weekly Pay mode of operation.

The meter is still our primary collection method and collection tool and we can use as a back up option for customers who pay by Direct Debit and PayPoint also. The Mark IV allows the customer the benefit of using the meter to put additional in if they wish or it can help them budget effectively. One of the advantages the Mark IV has over previous meters is that it is not restricted to hours per £1, so providing that customers put in their weekly terms at the start they will have unlimited viewing (free running).

Benefits of the Mark IV Meter to the customers: • A more attractive device.

• An enhanced display with additional scrolling display line designed to inform customers how much is required to revert to normal hours per pound or, if on weekly collect, how much they need to kick into free running.

• The ability to receive message alerts directly to the meters display, confirming when due for collection, when a delivery is booked for or when a service call has been arranged for.

• More flexible payment options with multiple payment methods: ■ Standard hours per pound (Old Money Manager Mode).

■ Hours per pound adjusting (CNC).

■ Weekly Collect with option for Cash, Direct Debit and PayPoint.

• Ability to change meter settings remotely: ■ Adjusting hours per pound.

■ Adjusting payment amount.

■ Adding emergency credit to the meter.

■ Master reset of meter to attempt to fix issues remotely.

• Access to information, such as how much is in the meter without waiting for a visit to count meter contents.

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The benefits for the field staff are much the same: • The better looking meter means that it is less of an objection to overcome when selling to a new customer.

• The enhanced display means that customers will have less need to contact field staff to enquire about the meter and its settings, cutting down on account enquiries and meter calls.

• Advance notification of collection visits which will ultimately lead to higher first time hit rates for on round collections.

• Increased payment options meaning that the best payment option can be selected for the customer leading to increased customer satisfaction, less account enquiries and less meter calls.

• Direct Debit and PayPoint means that field teams can grow the size of their rounds/regions without increasing the number of visits they need to make.

• Advanced warning of payments into the meter will allow potential payment issues to be spotted early, allowing remedial action to be taken much earlier which in turn prevents the customers from getting too far into arrears before their next scheduled collection, reducing the likelihood of a termination or company return taking place later on down the line.

• Remote control will allow field staff to discuss meter settings with the customer, agree tweaks that best suit the customer’s circumstances and make the changes without needing to gain access to the customers home.

• Advanced warning of potential concerns when meters don’t connect to central servers to upload meter readings.

• Alerts when the battery is low, when unauthorised access is made and when the meter is full or reached the maximum allowed in a customer’s meter.

• The ability to set APS remotely to support better on round clearance.

• The ability to restrict the meter.

The functionality of the new meter is designed to provide customers with the best possible experience available to them in this market both in terms of the meter itself and also the way their CAM’s, Field Debt Managers and Field Operational Managers help them to manage their accounts.

The Money Manager Mark IV has been designed to give customers and employees the tools they need to allow customers to improve their lifestyles by helping them to save towards buying essentials goods on a hire purchase contract. Ultimately it is designed to help every customer from sale to ownership, understanding that along the way they may require help to deal with changes in circumstances in a genuine, empathetic manner that puts the customer first.

Customer Viewing Patterns The Viewing tab takes viewing information retrieved from the daily meter readings and builds a typical daily viewing profile using average viewing patterns over the last 13 weeks.

Usage of this information is governed by both the Data Protection Act and Company Policy. The viewing pattern data is designed to help us provide the customer with the best possible customer service as possible. Data captured

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enables the business and the field teams to develop round collection priorities as well as delivery and service times based upon times of the day that best suit the customer. The Mark IV Console and Panasonic provide users with a window into the customers viewing patterns.

The colour coding for the Viewing Patterns are: • Better than 80% chance of customer being in show as Green.

• 60–79% chance that customer will be in show as Amber.

• Less than 60% chance that customer will be in show as Pink.

Direct Debit Direct Debit is our least expensive form of payment and is fast becoming the preferred method of payment by customers, particularly weekly Direct Debits.

Our experience of Direct Debit with existing customers is very good. Direct Debit enables the customer to receive interest rebates and also helps customers budget more effectively, it means that they don’t have to wait in for the CAM to call and it saves them having to run around looking for pound coins part way through their favourite TV programme. Weekly Direct Debit payments are automatically credited to the meter once the customer payment has cleared and is set up to run in Weekly Pay mode until the following week’s payment day.

When setting up a meter for the Direct Debit payment method a two days clearing period is required for the bank to confirm that the Direct Debit collection has been successful.

Customers can get paid weekly, fortnightly and monthly. It will be necessary to capture multiple payment frequency/dates and then select the main payment day to use when either carrying out the New Business assessment or setting up a Direct Debit for an existing customer. For customers who receive benefits, then this should be their benefit/pay day. Customers who work will be more likely to get paid monthly but in most instances we find customers prefer to pay by weekly Direct Debit. The default rate is significantly lower on weekly Direct Debit therefore this should be promoted rather than monthly. If we set up for the wrong payment date it may mean that we try to collect payment too early or too late, causing the customer’s Direct Debit to bounce and the bank to charge the customer for not having sufficient funds.

New Business Customers A Direct Debit Mandate need to be completed for each New Business customer when setting up a Direct Debit before there is a live account to post the details to. This is on the Panasonic.

For a weekly Direct Debit, there is a notification period of 5 days before the first Direct Debit collection is requested. The customer should be notified of this at the time of completing the Direct Debit paperwork. It should also be explained to the customer that they should put their terms in the meter until a successful Direct Debit payment is taken.

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Once the Direct Debit has been set up, the paper mandate must be disposed of in confidential waste, the appraisal must be filed along with the agreement.

Existing Customers Including Customers in Arrears Existing customers who choose to pay by Direct Debit will need to contact Customer Services or Regional Office and complete the mandate/appraisal over the phone, in time their CAM will be able to complete this on the Panasonic. This is the prescribed option for Direct Debit setup unless a valid reason is indicated in the notepad, in which case an account enquiry should be raised for sales to call and discuss.

A DD should not be set up for a customer if 3 Cancelled Direct Debits have occurred in the last 3 months. This is shown on the notepad as “Direct Debit cancellation letter sent on (dd/mm/yy)”.

When setting up a Direct Debit for a customer, it is important that the customer is made aware of: • • • •

Any arrears up to the first payment. Options are as follows Including the arrears on the first Direct Debit payment Using the meter until the Direct Debit begins Making a card payment/payments

The Direct Debit Guarantee. The Direct Debit may be set up using another person’s bank account (.e.g. the customer’s partner) but the bank account details must be taken from the account holder and not the customer. The direct debit guarantee must be read aloud to the bank account holder.

Once a DD is set up for an arrears customer, an Account Enquiry should be raised to inform Sales that the customer will now be paying by DD so that this is visible to the CAM, under the code “Direct Debit Customer in Arrears”.

New Business and Existing Customers The customer must be made aware that: If a Direct Debit is due on the 29th, 30th or 31st of a month which doesn’t contain those dates (e.g. February) then the Direct Debit will be called for on the next working day.

If a Direct Debit is due on a weekend, then it will be called for on the Monday of the following week.

If a Direct Debit is due on a bank holiday then it will be called for on the next working day following the bank holiday.

The system will send the customer a notification letter confirming the details following set up.

Money Manager Mark 4 Each Direct Debit customer requires a Money Manager MKIV meter unless they have an Item with a PCU unit. The system will automatically raise a delivery note for a MKIV where the customer does not already have one fitted. Following

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successful Direct Debit payment, the Meter will switch to ‘free running’, for that week/month (depending on payment frequency). If at any point the Direct Debit collection fails or is cancelled, the Meter will revert back to ‘hrs per £’ or “weekly/fortnightly” and the customer must put money into the meter to receive viewing.

Secondary Sales When completing a Secondary Sale the Direct Debit will automatically change to accommodate the new terms. The customer must be made aware of this at point of sale and a Direct Debit notification letter will be sent automatically.

If the sale is subsequently declined, the terms will revert to their original level.

This may not occur in the same week.

Failed Collections When a payment fails an automated notepad entry is tagged with the reason why, such as: • Direct Debit Bounced: Amount £x.

• No Account (or Wrong Account number) Notification received from bank via Bounced file/Direct Debit automatically cancelled.

• No Instruction. Notification received from bank via bounced file. Direct debit automatically cancelled.

If a weekly Direct Debit payment fails then a £2.50 charge is applied to the account and the next week’s payment is called for in the usual way. If the 2nd payment fails then another £2.50 charge is applied, and the instruction is suspended. The customer will revert to paying by cash. They will stay in the suspended status for 7 days, and if not reinstated in that time they will be cancelled. A notepad entry is tagged stating: “Direct Debit cancellation letter sent on (dd/mm/yy)”. This will only be sent after the 2nd consecutive bounce.

Direct Debits which have been suspended may be reinstated by customer services team leaders at any point during the 7 day duration, if the customer brings their account up to date, or makes alternative arrangements to make up the missed payments and discuss why the previous direct debits failed, and confirms future collections will be successful.

If a monthly Direct Debit fails then a £10 bounce charge is applied and the payment is called for again 7 days after the failed direct debit is reflected on the customer’s account. The notepad entry is tagged as: • Direct Debit Bounced: Amount £x ,Reason 0175 Refer To Payer • Represent Direct Debit on dd/mm/yy If this is also unsuccessful then another £10 bounce charge is applied and the instruction is suspended. The customer will revert to paying by cash. They will stay in the suspended status for 7 days, and if not reinstated in that time they will be cancelled. A notepad entry is tagged stating • Direct Debit cancellation letter sent on (dd/mm/yy)

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The represent of the Direct Debit can be stopped up to 3 working days before the represent is due. This can be requested by customer service team leaders, but requires the customer to either bring the account up to date without the represent, including the failed collection charge; or the customer contacting customer services to inform them that if the represent is called for it will not be successful, and that they wish to make alternative arrangements to make up the missed payment.

Automatic Cancellation upon Direct Debit Failure If certain reason codes for failed direct debits are received from the bank, the direct debit will be determined as no longer viable and will automatically cancel the instruction without representing or suspending the direct debit first. These reasons include: • • • • • •

instruction cancelled payer deceased no instruction account closed invalid account type incorrect account details

Failed Weekly and Monthly Direct Debits The customer’s bank details are removed from the account screen when the Direct Debit is no longer active. Customer Service will contact the customer to determine the reason for the cancellation and aim to reinstate the Direct Debit; if we are unable to contact the customer a notepad entry must be left.

A report is issued daily to the regions to inform them of any failed Direct Debits.

After 2 failed Direct Debit payments, customer services will attempt to call the customer to resolve the problem. A meter call will also be raised. The account will be re-issued onto the normal round that it would belong to if it was a meter/cash customer and if the customer does not pay up to date by the end of the week then it hits the arrears cycle.

Suspension of Direct Debit Collections Failed collection calls due to insufficient funds will result in Direct Debits being suspended to allow time to establish contact with the customer and either reinstatement of the Direct Debit agreed or amendment to another payment method. The reinstatement of suspended direct debits to live will permit the business to call for the Direct Debit on the next available due date, without incurring delays caused by the 5 day set up time. If Direct Debits are not reinstated to active within a 7 day period they are automatically cancelled by the system.

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Blocking Setup of New Direct Debit’s for Customers Where customers persistently cancel Direct Debit instructions or incur high collection failures, the system will place a blocked status on the customer’s account. This will prevent new Direct Debit being set up on the customer’s account for a period of 3 months.

The blocked Direct Debit Status can be removed at any point during the 3 month period by customer service team leaders, but will require contact between the customer and customer services to discuss what has happened to result in the blocked status and how re-occurrence can be prevented.

Amending Existing Direct Debit Details Request to Change Date/Day of Existing Direct Debit Arrangement For any Direct Debit, if the customer calls 3 or more working days prior to the next due date we can amend the Direct Debit for the following call. If they call less than 3 working days before the Direct Debit is due, the day will remain the same for the following occurrence but will amend the occurrence after.

DIRECT DEBIT DUE DAY

LAST CHANCE TO MAKE CHANGES

Monday

Wednesday

Tuesday

Thursday

Wednesday

Friday

Thursday

Monday

Friday

Tuesday

Saturday

Wednesday

Sunday

Wednesday

Request to Change Bank Details Changing customer bank details requires communication between banks and will incur a 5 day notification period before collection; this is to allow for cancellation of old Direct Debit and set up of the new Direct Debit. If the next collection is 3 or more working days away then changes can be made straight away and the system will call for the Direct Debit on the next due date after the 5 day notification period has ended. If the next collection is due in less than 3 working days, the changes should not be made until after this collection.

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Paying Higher than the Suggested Amount Customers can choose to pay a larger amount weekly/monthly permanently as this will then reduce the length of time it will take to finish the account. The amount to be paid can be set at this level at the outset or can be changed by the customer at any time, giving the necessary 5 days notice.

Temporary Higher Payments Customers can also choose to make higher payments for a nominated period of time and revert back to their normal weekly/monthly term. This can be used to clear small value arrears. The start and end dates for this higher rate can be set on the system and after this time the payments will revert to their original level.

Duration The duration box is used to control temporary higher payments and should not be completed for any other reason.

This should be left blank and will ensure the Direct Debit will continue to collection until the customer’s account is fully paid. When secondary sales are made the Direct Debit will automatically adjust, if a duration is set it will stop, whether any secondary sales are made or not.

Letters There are a several reasons why a customer on Direct Debit will receive automated letters.

Direct Debit Confirmation Letter: This will be sent to every customer when a Direct Debit is set up on their account.

Direct Debt Amendment Letter: This is sent when any changes have been made to a customer’s Direct Debit e.g. Amount, Date, Account No etc.

Direct Debit Cancellation Letter: This will be sent to a customer when they have 2 consecutive bounces.

Setting up the Money Manager Mark IV in Readiness for Direct Debit Payments This will be automatically set to Weekly collections for Direct Debit or PayPoint customers.

Note: Customers who opt to pay by monthly Direct Debit will have their meters automatically set up as free running because the different number of weeks between some monthly collections means that the weekly collection mode will not work. If a monthly Direct Debit bounces the system will automatically put the customers meter into 3 hours per pound. Customers will only be given 5 hours free running with the first bounce to enable them to resolve the issue and retain viewing (weekly and monthly).

The payment day needs to be set to the payment date agreed with the customer and the default hours per pound for fall back should be set to ÂŁ3 hours per pound.

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There is no option for Monthly Collect on the MM Mk IV. In this instance the meter will be set up for Weekly Collect, however a whole month will be posted and so the meter will end up with 3 weeks in reserve, which will deduct by 1 as each week goes by. For the occasional 5 week periods the central server will need to credit the unit with enough free hours for 8 days viewing. This is preferred than having to switch in to “Free Running” and then switch back to weekly collect the next week because there are fewer server interactions involved.

PayPoint PayPoint is an alternative payment method and is good way of customers paying their account at the same time as they pay other bills at their local convenience store or Post Office. PayPoint customers benefit from a monthly interest rebate.

With PayPoint the meter will be set up to operate in Weekly Pay mode. The meters payment day will be set to the day that the customer chooses to specify and is usually when they receive their wages or benefits.

When a payment is made at a PayPoint terminal we are notified of the transaction instantly and within approximately 10 minutes the meter will be credited.

Set up of the Mark IV should be automatically set to weekly collections. The payment day needs to be set to the customer pay day. The default hours per pound for fall back should be set to £3 hours per pound. It should not be possible to adjust this for weekly collections.

Until the customer receives their PayPoint card they will have to put money in the meter as normal. Once they receive their PayPoint card the customer will be able to pay their weekly instalment either at the post office or in any local convenience store. The meter will still be left on the TV and so the customer will have the option to pay extra into the meter as they would with Direct Debit. If the customer chooses to pay by PayPoint then PayPoint will be set up as the default payment method and the system will automatically request a card from the card printers.

As soon as payments from PayPoint are received and confirmed by BAYV’s payment server the MM Mk IV server should credit the meter with the payment received. The lead time from set up to delivery of the card is typically 2 weeks, during this time the customer will have to pay by cash through the meter.

After two successful weekly or fortnightly payments the customer’s payment method can be changed to PayPoint. Up until this point the customer’s main payment type will be meter.

Customer Service has the ability to place a customer onto a PayPoint Payment Method. A script has been designed to read to the customer for the PayPoint Set up Screen.

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Key Areas to Note about PayPoint: • No more than one PayPoint can be made in one day.

• The minimum payment value possible is £2 and the maximum is £70.

• There will be a maximum of 20 minute delay between when the payment is made and before this payment registers on the meter.

• If the customer loses their payment card they should notify us immediately on 0845 121 5690. There will be a £1 charge to cover the replacement cost of the card; this cost will automatically be applied to their account.

• If they fail to maintain this payment method, we will revert to cash collection from the meter.

Refunds/Scenarios Claims can fall within 2 categories, through PayPoint and through Customer Service: 1. Claim through PayPoint • If a customer or retailer realises that the wrong details have been processed, in the first instance, providing the retailer hasn’t performed another transaction, a reversal can be performed.

• If a customer or retailer realises that the wrong details have been processed, but has now performed another transaction the retailer should refund customer and contact PayPoint for a refund.

• If a customer or retailer realises that the wrong details have been processed the retailer issues customer with a refund rather than performing reversal. Retailer should contact PayPoint for a refund.

2. Claim through Customer Services • If a customer walks out of store and realises that they have made an error.

A refund will only be given providing the following: • The payment error was made and reported within 24hours.

• The account is up to date with no outstanding arrears.

The refund process will take place using BACS. All Team Leaders and Senior Team Members within Customer Services have the ability to process refunds.

Credit & Debit Card Payments Credit and debit card payments are usually used as a way of making up a short payment or making an interim payment whilst a Direct Debit facility is set up.

There are very few customers who use this as a sole method of payment. The minimum permitted card payment is £5 as there is a cost to the business to process payments made through this method. Card payments are not currently processed through the PMO although we are looking to have this feature available later in the year. In the interim card payments should be called through to Regional Office (prior to 6pm) or the card payment line on 01656 754704 after 6pm. They will take the card details and process on the Oracle system so the payment does not get posted on the PMO.

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Accepted Cards Only the following cards are accepted by Dunraven Finance.

• • • •

VISA Credit VISA Debit MasterCard JCB

The card type should be checked before proceeding with processing a payment.

Card Holder Before processing a card payment you must ensure you speak to both the customer and the card holder if they are not the same person, and verify both are happy to proceed with the transaction.

Please Note: The presence of the card holder is NOT sufficient, you must speak directly to the card holder when processing the payment, and they must provide all details themselves.

Cash There are a small number of customers who pay solely by cash and do not have a meter. This is not encouraged because we have no way of tracking important information like viewing patterns, etc and it is much harder to resolve arrears situations with customers who have no meter as they are less likely to be able to come up with larger sums of cash whereas the meter helps them budget more effectively. Cash is often used as a method of topping up where customers are short in the meter. In all instances cash must be posted to the account using the PMO as soon as it is collected.

Cheques Customers may offer cheque payments as a way of payment however CAMs should be aware this can be used as a way of delaying payment and the customer may know that the cheque will bounce. Always try to take a card payment as the first alternative but if this is not possible ensure that the cheque details are complete—date, value (words & signature match), signature and all card details are taken and recorded on the back alongside the customer account number. This payment method will eventually be phased out. Business cheques are not accepted by the company as they do not have a cheque guarantee card issued to cover them. All cheques must be made payable to Dunraven Finance limited and should be reviewed to ensure they are correctly completed before leaving the customer’s house.

Cheques are generally used when a customer is short, although there are a small number of customers who pay their full terms by cheque every 8 weeks. The PMO will not allow any customers who have had 2 previous bounced cheques to pay using this method. Post dated cheques must never be accepted. This clearly shows the customer does not have the relevant funds available.

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Collections Lifecycle Process Grey tinted boxes = New

Delivery note cancelled & sales lead updated with outcome

Sale completed (NB or SB)

Automated APS kicks in

NO

YES

Sale completed (NB or SB)

Underwriting passed

NO

Acc. tracking off plan

YES

Goods delivered YES Account set up

NO

Wk 3 Automated Mark IV courtesy call

Acc. UTD & running OK YES Issued on to NML round

Collected up to date YES

Issue on regular 8 wkly collect

NO

NO

Delivery note cancelled & sales lead updated with outcome

Sale completed (NB or SB)

Meter call raised

NO

CAM visit to connect meter or collect PUTD

Issues resolved YES

APS set up (commitment made) YES

Refer to Arrears flowchart

NO

Consider termination

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Arrears Measurements TLC Arrears are measured through the total number of late customers(TLC) divided by the total number of customers x 100 = Total Late Customer % Late Customers Total Customers

X 100 = Total Late Customer %

On Round Cash to terms (CTT%) CTT% is the percentage of collectable cash due actually collected, measuring the impact of shortages and uncollected whilst taking into account all cash, including meter calls and brought forward, coming into the business. By focusing on the bonus programme you will improve this area.

Arrears Cash to Terms Arrears cash to terms is the percentage of cash collected in arrears as a monetary and % value of the contractual payments in arrears.

Arrears Categories Categories identify where the customer lies in the Arrears Cycle by breaking the cycle down into categories of lateness. These categories are: 1–8 Weeks: FRONT-END 9–16 Weeks: MID-RANGE 17+ Weeks: BACK-END

Summary The fewer customers you have in arrears, the more money you will have collected. Therefore, by ensuring your TLC% is kept low, your bad debt charge will remain within budget. The best approach to minimise your arrears is to ensure that all efforts are made to collect from the customer whilst they are ONRound, avoiding movement into the Arrears Cycle. However, should you fail to collect payments on Round, every effort must be made to collect them within the Arrears Category 1–4.

The more customers that you allow to roll through into the next category, the more difficult it will become to help the customer get back on track. This increases the likelihood that the customer’s account will have to be written off or that the RM/FOM will be given no alternative but to sanction Company Return of the goods.

To avoid the poor resolution of Company Return or write-off, you must be on the lookout for early warning signs and take preventative steps. You will be required to work with the customer to help them manage their accounts through potentially difficult times.

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Arrears Responsibility The below diagram shows who is responsible for what and when.

CAT 5-39 FDM support On round

Cats 1-8

Cats 9-16

Cats 17-24

Cats 25-30

Cats 31+

Cat 39 write-off

CAT 0-39 CAM responsibility CAT 0-39 FOM responsibility CAT 0-39 RM responsibility

Implications of Arrears All accounts that do not fully meet their commitment to pay on time and in full will be escalated into the arrears control process consisting of the ‘Front-end,’ ‘Mid-range,’ ‘Back-end’ and 25+ categories. As the customer moves through the cycle, they will be measured by their ‘number of weeks in arrears’. Accounts will move through this process until such a time when the customer has brought their account up to date, a remedy has been applied to ensure that the account has moved back to the normal collection cycle or the account has been terminated.

For example, an account ON ROUND that didn’t pay will be escalated to ‘Wk 1’ and will continue to move through the process until the account is brought up to date.

Each time an account goes into arrears Buy As You View has to provide for it. A Bad Debt Provision is made on the outstanding capital balance on all accounts in arrears. The Provision increases as the account moves through the arrears cycle. For example a customer with a capital balance of £1,000 will have a bad debt provision at week 1 of arrears of £340 until all arrears are paid. This provision is not increased in weeks 2 to 8 categories. If all arrears are not collected and the account moves into week 9 the provision increases by £260 to £600 whilst the customer is between 9 to 16 category, and so on. This process will continue until the customer reaches week 31 arrears where the total bad debt provision increases to a maximum of £735 (73.5%). Assuming the account is written-off, normally at week 39 the remaining capital balance of £265 (£1000 less £735) is charged to the bad debts.

In addition, all unpaid interest is added to this capital balance and is also written off at week 39 and will be lost to the Company. This demonstrates how important it is to get a customer through to ownership of goods.

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The % provision by arrears category will change each year depending on our collections performance (see diagram below).

On round 0% Provision

WK 1-8 34% Provision

WK 9-16 60% Provision

WK 17-24 68% Provision

WK 25-30 72% Provision

WK 31+ 73.5% Provision

WK 39write-off 100%

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Arrears Control Process Grey tinted boxes = New

Consider termination

FSR

YES Cust. qualifies for FSR

NO

NO

Seek approval for FSR (Risk)

Consider part term

YES Cash collected covers new wkly terms

NO

YES

NO

Customer short on round

YES

APS setup (commitment made)

Collect as per APS

YES CAT 4 Cust. paid <4 wkly terms

YES Defer (will be automated)

Returns to NML round

YES

Manual Process

FOM: Full debrief with CAM on follow up required/ actions to improve

Continues on NML round

Automated Process

FOM: Wkly review of 1 round CAT 1-39 (PDFs)

PUTD

by EOW

CAT 1 arrears

Discuss with RM to commnuicate required FDM follow up & actions

Drive resolutions

CAM: 1x visit /wk min. update tag not epad CAM: 8/16/24/32 visitonround Updatetag/notepad FDM: Issued with all CAT 5+ calls RM: CAT 8 review debrief FDM on follow up needed RM: Follow up with FDM on previous weeks CAT 8

Payment in full

Trace run

Full term

Part term

FSR

Deferral

APS working towards

CAT 1-4 Arrears text Mon. AM Arrears text Wed. PM CAT 2 Meter locking letter sent CAT 3 criteria apply lock meter CAT 5 Ltr A-increasing arrears Ltr B-holding arrears

CAT 11 Default letter

CAT 20 Final notice

CAT 39 write-off

Customer Services | VR CAT 1-39 Arrears calls weekly

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Automated Activity Texts Week 1–4, the customer will receive 2 texts per week on a Monday & Wednesday.

The text content is detailed below: Cat 1. Sorry we missed you last week. Please contact Buy As You View on 0845 121 5690 quoting your ref no.

Cat 2. Please contact Buy as You View urgently on 0845 121 5690 quoting your ref number.

Cat 3. We have been unable to contact you regarding your account. Please contact Buy As You View urgently on 0845 121 5690, quoting your ref number.

Cat 4. Your account is in arrears. Please contact Buy as You View on 0845 121 5690, quoting your ref number, to discuss.

Letters Collection letters are another effective collection tool. They act as evidence of our effort to contact a customer in order to help resolve their arrears problems.

Our collection letters are automated and need no input from our CAMs.

Cat 2. Meter Restriction Letter This is sent to all Cat 2 customers with Mark IV meters notifying them that if they fail to contact us to come to an arrangement then their meter may be restricted within 7 days. Refer to appendices for a copy of the letter.

Cat 4. Late letter 1 Varies depending on whether they are maintaining or increasing their arrears.

Refer to appendices for a copy of the letter. This letter is a legal requirement under Section 86(b) of the CCA.

Cat 11. Default Notice The Default Notice is a legal requirement the Consumer Credit Acts. The default notice is a formal letter sent by the creditor to notify the customer that they are in breach of their agreement and to explain to them the consequences if they fail to resolve the situation. The Default letter must be received by the customer to allow Dunraven Finance Ltd to: • • • • •

Terminate the agreement.

Demand earlier payment of any sum.

Recover possession of any goods.

Terminate any right conferred on the customer.

Enforce any security.

Default notices are normally sent when the customer has reached Category 11 of the arrears cycle. However, we can send a letter before this point if the Regional Manager has agreed that this is the only appropriate course of action.

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The SSM has the facility to process these letters. This must expire before the collection can take place.

In Scotland, an FDN must be sent and allowed to expire before any product collection can take place, at any stage of the agreement life cycle.

In either case, the first and essential requirement is to issue a Default Notice.

Consumer Credit Acts 1974 states that creditors may not take action against the customer whilst the Default Notice is in force, (no less than 14 days). Section 87 of the Consumer Credit Act requires a default notice to be issued to a customer prior to taking goods back; the intention is to give them time to bring the account up to date. Once a default has been served no action can be taken on the account, for example the agreement cannot be terminated or the goods recovered, until the 14-day period has expired. If the customer fails to bring the account up to date after the 2 weeks have expired then the goods can be taken back and a Collection by Consent Form completed. Should Dunraven Finance Ltd decide to take the customer to court, this will be a decision made by the Director and can only take place following the issue of a Default and the allocated timeframe expiring. If no solution has been reached between Dunraven Finance Ltd and the customer at this point, we can issue a claim form to start proceedings. This could result in a County Court Judgement against the customer. The court may then issue an Order to repay the debt immediately or by instalments. If the balance exceeds £750, Dunraven Finance Ltd can consider making the customer bankrupt. We may also pursue a Recovery of Goods Order.

The most cost effective solution is to collect the goods. This is still a negative result for Dunraven Finance Ltd because every Company Return incurs bad debt costs to the business.

If goods were bought on Hire Purchase or conditional sale agreements, Dunraven Finance Ltd can collect the goods as they remain our property until total payment is received.

In England and Wales, if the customer has paid over one third of the purchase price, the company will have to get a court order before the goods can be taken back (unless the customer consents). In Scotland, a court order may be required at any time, though the law is ambiguous. Refer to Appendices for a copy of the letter.

Cat 20. Final Late letter Sent to all customers, this is a legal requirement under Section 86(b) of the Consumer Credit Act 1974 and must be sent within 6 months of the Week 4 late letter. Refer to Appendices for a copy of the letter.

Automated Meter Restriction (Cat 3) Automated meter restriction takes place at Category 3 in the arrears cycle. Meters will ONLY be auto restricted if the following criteria have been adhered to: • there has been a relevant notepad entry each week of the past two weeks • the meter has been communicating • there is no APS set up on the console

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• the TV is active (we have had a Viewing pattern in last 8 days) • there have been no payments in the last 7 days If all these factors are correct then the meter will be automatically restricted on the Wednesday when they have reached Cat 3 arrears.

Payment success rates from meters that have been restricted are very high with 60% resulting in payments are being made within 7 days of restriction however the number of meters we restrict is severely limited due to poor field practices, the more meters connecting, the more we can restrict. The more notepads you put on, the better likelihood we can restrict.

Restricting is a powerful tool in arrears management when utilised correctly but it is presently under-utilised due to inconsistent field practices.

Automated Arrears Calls (Cat 1–39) Customer Services have an auto-dialler which calls all arrears categories as per below: Monday Tuesday Wednesday Thursday Friday Saturday

Cat 9–16 Cat 5–8 Cat 5–8 Cat 1–4 Cat 1–4 Cat 1–4

They recycle the calls usually 3 times a day so every category gets a call attempt at least 3 times a week.

The customer has the option to request a call back via customer service, be transferred into customer service to make a card payment or can automatically book a call for the CAM to call, this is done via a meter call and the customer chooses when they want the meter call to take place over next 2 days.

Payment Control Units (including Optica) Payment guidelines Both a new customer being signed up on Direct Debit and an existing customer who is converting to direct debit as a secondary sale will be given a grace period if purchasing an Item with a PCU unit. This effectively permits the customer a payment holiday whilst the direct debit is being set up. This will mean that the customer’s account does accrue arrears in the interim period whilst the Direct Debit is being set up and that we are allowing the customer to have the product free of charge for two weeks.

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How the Grace Period Operates Existing Direct Debit (DD) Customers If the DD is already set up, the expiry date of the Item with a PCU unit will be set to the next due payment date.

Existing Paypoint (PP) Customers If the PP is already set up, the expiry date of the Item with a PCU unit will be set to the next due payment date.

New DD Customers • Two week’s grace period will be permitted for the customer to allow them to be set up on DD or PP. • If a new customer is converted to DD within two weeks of the installation of the customer’s first Item with a PCU unit device (i.e. not the installation date of future Item with a PCU unit purchases or SCO installations), the grace period will be modified to coincide with the first scheduled payment.

• If a cash customer is converted to PP within two weeks of the installation of the customer’s first Item with a PCU unit device (i.e. not the installation date of future Item with a PCU unit purchases or SCO installations), the grace period will be modified to coincide with the first scheduled payment.

• If further DD or PP instructions are received by the system within two weeks of the installation date, the grace period will be further modified to coincide with the new first scheduled payment.

• If a DD cancellation instruction is received within two weeks of the installation of the customer’s first Item with a PCU unit device, the grace period will revert to cover the two week’s from installation.

These rules are designed to handle new business and DD-converting secondary sale customers without giving any grace period to existing DD or PP customers or to customers who cancel DD instructions and subsequently sign up to DD again.

After two weeks has elapsed from the time of installation, the grace period for that customer will remain constant unless manually adjusted or unless: • Customers who fall into arrears category 1.

• The customer modifies their agreement.

Providing the customer consistently makes their payments on time as promised, the arrears accrued in the grace period that will be present on the console will not be required to be settled until the end of the customer’s agreement.

In the event that a customer never enters into arrears cat 1, the arrears accrued in the grace period will be carried on the customer’s account in the same way as those customers who have paid consistently throughout the agreement. The customer will not be expected to cover these arrears until the end of the agreement.

However, in the event that the customer falls into arrears category 1 then the customer will be expected to cover the full arrears on the account which includes any arrears accrued during the grace period. If the customer is able to make up

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all missed payments with the exception of the grace period arrears, the TV can be unlocked.

The Locking Process. What happens if the Payment Fails?

An automated payment control unit (PCU) monitors the payments from the customer—Direct debit or PayPoint. If a Direct Debit bounces or a PayPoint payment is not made on time the PCU will instruct the TV to lock and display an alert. The customer can remove the lock by making a payment or by setting up an APS with customer services.

The Item with a PCU unit system isn’t linked to the customer’s arrears but is based on a system of moving an expiry date when payments are received. As described above all customers are given a grace period for the direct debit to be set up and the Item with a PCU unit TV will not lock during this period regardless if the customers falls into arrears CAT 1.

The Item with a PCU unit locking is determined by payments made and a moving expiry date on the TV and is NOT associated to the arrears on the account. The only business rule that has been implemented in terms of arrears for an Item with a PCU unit, is it will not lock for any customer who isn’t in arrears.

Current System Currently, when a customer registers their Item with a PCU unit their service expiry is set to an initial value as shown below: CUSTOMER PAYMENT TYPE

EXPIRY DATE

Active Direct Debit

The next due payment

Pending Direct Debit

The next expected Direct Debit payment

Active PayPoint

The next due payment

Pending PayPoint

The next expected PayPoint payment

Other Customers

One week following the registration

Any time a payment of the full weekly terms is made (regardless of the payment type) the expiry date is pushed back by one week. If a partial payment is made (regardless of the payment type) the expiry date is pushed back by a similar portion of a week. For example, if the customer pays half their weekly terms, their expiry date will be pushed back by 3.5 days.

Direct Debit payments are handled optimistically. That is, when a payment is requested from the bank, the system assumes it will be successful and moves the expiry date as described. If the bank subsequently reports that a payment has failed, the expiry date is brought forward using the same rules as above. If an Item with a PCU unit customer’s Direct Debit bounces twice they have a

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further 7 days from loan-book shutdown on the week of the 2nd bounce to resolve this before it falls into the arrears cycle.

All modifications to service expiry date are subject to business rules which prevent the expiry date falling out of business hours. If the time element of the expiry date is before 8am, it will be modified to a random time between 8am and 3pm on the same day. If the time element of the expiry date is after 3pm, the expiry date will be modified to a random time between 8am and 3pm on the following day. If the date element of the expiry date is not on a working day (e.g. weekend or bank holiday), it will be pushed backwards to the first following working day.

Arrears Management An Item with a PCU unit meter call is raised 48 hours after the TV has locked if we have had no communication with the customer. This is for the CAM to attend.

If a customer has a bounced Direct Debit they will be contacted via Customer Services in the same way as a normal Direct Debit customer would be.

If a customer cancels their Direct Debit or has two consecutive bounces the account will hit the arrears cycle at loan-book shutdown that week and will roll into Cat 1 of the arrears cycle. An Item with a PCU unit customer is the CAMs responsibility from the minute a bounce or missed payment occurs in exactly the same way as a Direct Debit customer is. The arrears process should be followed as it would be for a meter customer.

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Chapter Two

CAM

Customer Account Manager

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Field Roles & Responsibilities All field employees have a responsibility to lend wisely and make sound, commercial decisions, making the correct decisions at the front end will support improved collection practices which will ensure that each customer is as profitable as possible for us. Excellent customer service will also be a factor in this. Below are the main roles and responsibilities which impacts collections and arrears for each field role.

CAM Responsibilites: Collections • • • • • • • • • • •

Visiting & collecting from customers every 8 weeks minimum.

Collecting any shorts/arrears due by doing call backs.

Achieve cash collection targets weekly.

Manage arrears customers Cat 1–39 working with the FDM for resolutions.

Make secondary sales per week as per target.

Seek out new customer referrals every day as per target.

Resolve any customer enquiries and clear all meter calls within customer timeframes.

Complete new business assessments as required.

Complete customer returns as terminations professionally and only where no other resolution is possible.

Adherence to legislation and Company policies & procedures for all aspects of the job.

Treat the customer fairly at all times.

CAM Responsibilites: Arrears • • • • • • • • •

Manage arrears customers Cat 1–39 working with the FDM for resolutions.

Visit all Cat 1–4 every week at least once & notepad Visit all Cat 8/16/24/32 every week at least once & notepad Tag all arrears customers Notepad every arrears visit, even if visited more than once daily Attend all arrears meter calls Ensure every meter is working & connecting on every visit Action low battery alerts Remember Cat 1–39 is YOUR responsibility

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CAM: Field Roles & Responsibilities/Assessment & Underwriting

Assessment & Underwriting One of the easiest ways to prevent the likelihood of an account going into arrears is quality assessment and underwriting. This is why we have the New Business RAG programme which identifies the employeeâ&#x20AC;&#x2122;s assessment capability (in terms of level of training) at any given time.

The aim of the process is to ensure that the quality and consistency of assessments is maintained and only those deemed qualified to do so (Green Rated Assessors) can make, what should be, responsible lending decisions.

The assessment process is also measured through a series of cohorts which enable us to review how many assessments each Green Rated Assessor (GRA) has completed, how many were passed and how many subsequently went on to be successful accounts.

An employee must have completed three months continuous service with the company and have successfully passed their 90 day probationary period to be trained on assessment, this is to ensure they have a solid knowledge of the business and the implications of good and poor assessment decisions which should support a solid decision making process.

The exception to this will be colleagues who have been recommended by their Regional Manager, and will be agreed by the relevant Divisional Director, for instance, a member of staff may have been recruited externally or recently promoted into a management role. In these circumstances they will immediately enter the process.

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CAM Weekly Planner 01/07/2013 • • • • • •

On Round collection Cat 8/16/24/32 NB RAF 15% SS Meter calls General enquiries

03/07/2013 • • • • • • •

On Round collection Cat 8/16/24/32 NB RAF 15% SS Meter calls General enquiries Debt focus - 3% cash

02/07/2013 • • • • • •

On Round collection Cat 8/16/24/32 NB RAF 15% SS Meter calls General enquiries

05/07/2013 • • • • • • • •

On Round collection Cat 8/16/24/32 NB RAF 15% SS Meter calls General enquiries Debt focus – 3% cash Pull forward

04/07/2013 • • • • • • • •

On Round collection Cat 8/16/24/32 NB RAF 15% SS Meter calls General enquiries Debt focus – 3% cash NB Courtesy call meter calls • Pull forward

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CAM: CAM Weekly Planner/Collections: On Round

Collections: On Round Customers are required to make their payments on time and in full. This is called an ON ROUND Payment. However, some customers may pay late. Success will depend on how effectively and efficiently you manage the collections process described in this document.

Remember, your objective is to get as many customers as possible to ownership.

As a company we are measured on our collections performance. Collection results are also used to establish the performance of individual CAMs. By adhering to the policies laid out in this section, you will ensure that you manage your time effectively and consequently you will achieve the expected results.

Those that adhere to these policies will enjoy consistently good results, which will ultimately lead to enhanced relationships with customers, improved customer satisfaction and more time to devote to the management of arrears.

Talk to Your Customers During the collection of normal “On Round” payments, you may identify information that could jeopardise future On Round payments. Events, such as the loss of income or relationship separation, should be flagged against the customer’s account and a note made to check the customer before the next collection date (between 2 and 4 weeks later) to ensure that their change in circumstance has not caused their account to start falling into arrears. The automated APS on the Mark IV console should also identify this. The same procedure should apply for holidays; consideration should be given to collecting prior to the customer’s holiday. Catching problems early can avoid unnecessary terminations and Company Returns.

Another reason to talk to your customer is the time of year. Every effort must be made to persuade customers to adjust their meter settings in April as preparation for the reduced viewing summer period. However, if a MKIV meter is fitted and the customer is set up on the weekly/fortnightly algorithm this problem is alleviated.

What Makes a Good CAM? The sign of a good CAM is their ability to handle every customer, whether in debt or not, with ease and purpose without being judgemental or condescending. A good CAM can talk and correspond with different people and overcome objections enabling them to work towards speedy and effective resolutions. A good CAM’s conduct and decisiveness can be the difference between working at a profit and not and this will become evident with the new Profit & Loss reports. The CAM should never lose control of an account.

Dealing with customers is a testament to a CAM’s effectiveness and they should treat each customer as they would wish to be treated.

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CAM REQUIREMENTS Skills

Knowledge

Attitude

Listening

Customer

Determination

Questioning

Debtor

Positivity

Negotiation

Laws

Assertiveness

Organisation

Policies & Procedure

Empathy

Flexibility

Can do

Numeracy Tenacity

What Does a CAM Do? A CAM collects money but in addition to this they sell. They have 3 basic requirements: • Create goodwill and build a customer relationship.

• Promote cost effective collection.

• Sell the company philosophy and the right products at the right level and the right price.

By using common sense the CAM can be an asset to the company and is pivotal to the company success. The only manner in which the cash flow of the company is maintained is through the services of a CAM who understands the job and the importance of it. The CAM has the best understanding of the business and training is essential, getting the right people into the right job will make the company more successful.

CAM Judgement CAM should have the ability to apply judgement to situations—both sales and collections—and this will influence the manner in which the accounts are handled. Negotiation, listening and counselling are all important parts of the job and it is important that CAMs try to understand the customer’s circumstances whilst also doing right by the company.

Collection Tools (Auto APS) We have an automated system on the Mark IV console which reviews all Mark IV customers every week at loan-book shutdown and identifies any customers who are off track on their payments by more than 2 weeks’ worth of terms. The console then sets up an automated APS which will set their terms owed over the remaining weeks until collection to support them meeting their full terms when on round. The automation happens weekly and it will flex the payments up or down accordingly. The customer will receive notification via a message through the Mark IV.

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All Auto APS customers are automatically set to one Hour per Coin, this was implemented when we turned on APS across all the Regions and followed the pilot which pointed to setting up an APS and also reducing the hours per coin was the most successful approach.

The system creates a report which shows which customers have had an APS set up and looks at the following: • • • • •

Weekly terms Weeks before collect £ Arrears £ Net Arrears Outcome (this will only reflect an outcome if they have been issued for collection since, if they have not been issued yet they will all show as Amber in the final column).

This report will allow you to look at those customers who historically had an APS and how successful it was and also the ones which have just been put onto APS. The report could also be used as a focus for accounts the week prior to collect on pull forward to try to resolve issues beforehand.

Making Collections • • • • •

Never enter a customer’s house unless there is an adult present.

Never peer through a customer’s window or letter box.

Never use a back or side door unless the customer has given permission to do so.

Never enter a property unless you are invited in.

Never conduct field activity unless you are carrying your ID badge.

Counting Money Counting Money is a skill that has to be learnt. In Buy As You View, successful CAMs have a set routine for counting cash which they should follow after first syncing the meter to establish how much should be in it and notifying the customer. After the sync, the following process should take place: • Rule 1. Count money in front of customers.

The reason it is imperative for CAMs to count money in front of customers is to provide the customer with reassurance and trust. Managing accounts is about trust and the relationship between the CAM and the customer. Some customers may try to attend to other matters while CAMs count the money, they must be asked to stay in the room.

• Rule 2. Count money in piles of £10.

Counting money in piles of £10 makes it visible for the customer to see how much money will be collected. This confirms the trust and the customer will be under no illusion about the amount collected.

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• Rule 3. Organise money into piles of £10 into rows.

This prepares and organises the CAM for bagging the money and once again makes it visible for the customer.

• Rule 4. Confirm the amount collected and rebate.

The CAM should leave the customer in no doubt about the transaction. It is the same for any customer in a retail business when the checkout operator confirms the change when paying for goods.

• Rule 5. Bag the money and pass the rebate back to the customer.

• Rule 6. Enter the payments into the handheld whilst still in the house and verify meter settings, telephone numbers and ask for RAFs/sales.

Customer Receipts On the collections where money is given back to the customer in the form of a rebate a receipt must be signed by the customer and a copy left with them. The customer is signing to confirm the amount collected and any rebate that has been given.

The receipt lists: • • • •

The customer’s account number, name and address & date.

The meter yield.

The amount allocated to the account.

The amount given back in the form of a rebate.

Note: This is the only proof the CAM will have to say that monies have been given back to the customer. This is to safeguard the CAM and the customer.

Dealing with Shortages (this will be covered in more detail in the arrears section) • Step 1. Ask the customer for the shortage.

“That will be £20 please Mrs Smith.”

• Step 2. If the customer cannot pay you in cash.

“That’s not a problem we take debit cards, if you have your card I can sort that out for you now.”

• Step 3. If the customer does not have a debit card.

“Ok I have some other calls to make but I will pop back round in about 45 minutes to collect it.”

• Step 4. If the customer says that she cannot get out to get the shortage.

“Ok I go past here on my way home I will pop back in at about 7.45 for you.”

• Step 5. If the customer still says that is no good.

“Ok what time suits you tomorrow morning 9 or 10 o’clock?”

• Step 6. If the customer still cannot do that then make an arrangement to collect the shortage before the end of the week. Avoid Fridays if you can, as this will be your busiest day for appointments.

There are a number of questions that should be asked on every collection: • Verification of customer’s telephone number: This is essential to ensure that

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•

•

• •

our records are kept up to date at all times and will help with future sales and debt follow-up.

Meters Hours/Type: This is to ensure that the meter is fulfilling the customer and BAYV needs and the customer is able to meet terms and we are capturing the right data. CAMs must ensure the meter is fully functional before leaving the property.

Sales: Where the customer has not bought for a while or clearly has capacity, we should always ask if they are interested in buying anything else and leave a copy of the catalogue.

Referrals: Does the customer wish to recommend anyone as a potential BAYV customer.

Meter Information: Always check on the PMO and resolve any connection issues etc., whilst in house.

Meter Management One of the most important tools in field collections is the meter. Each field employee needs to be an expert in understanding how the meter can work most effectively for them and the customer. Keeping the meters working and achieving their full potential is critical to good collections and arrears management. There is a report called the ‘Meter Health’ report on the console which shows any which have outstanding alerts.

The report looks at the following: • • • • • •

unauthorised opens status connection status viewing status coin drawer status arrears category low battery status

The report gives each meter an overall health score. By giving the arrears category data and also the number of weeks till collect this will enable managers to print off this data and get CAMs to focus on those accounts where there are the biggest issues (lowest overall %) but also to improve productivity by tackling them when they are already out for collection (round 0) or alternatively before collection to improve on round performance.

The 2 greatest issues are non connection and non viewing meters, by reducing these 2 problems we will be able to drive better arrears activity through the Mark IV console as we are only able to restrict meters and set APS up on meters which are connecting.

Out Cards If a customer is not in when we call, the CAM should leave an out card, asking them to contact us to make an appointment. This should always be sealed. When completing out cards as a result of arrears activity you must: • Never write anything on it other than the information the out card asks for.

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• Never leave Out Cards with the customer’s debt figures visible or pinned to the doorframe.

Collections Security Awareness To minimise the risk to the employee and BAYV, the CAM must be security conscious at all times.

• • • • • •

Money bags should be carried discreetly and carried in clothing.

Personal panic alarms must be worn.

Money bags must be deposited in the safe in the foot well or boot in the car.

The safe cover must be placed over the safe.

No more than £1500 should be held in any safe.

All cash should be retained in the safe except where less than £20 in change.

• BAYV collections should be kept separate from personal cash at all times.

• Cash held should never exceed £3000 (where 2 safes are held) and should not exceed £1500 overnight regardless.

Security Procedures • Doors: Keep all doors locked when counting money, preparing banking using the safe.

• Cash Collected: Keep below £1500 in each safe at all times. Perform banking at regular intervals.

• Personal Alarms: These should be worn at all times when working in the field.

• Cleardown: Always action if there is more than £250 in safe or if you have not already banked any of that day’s collections. Bank all money collected up to this point.

• Personal Safety: When handling an aggressive customer remain calm and polite and always stay at arm’s length from the person.

• Safes: Must be kept locked at all times when safe is not is use. Safe keys must not be left in the car overnight and should be secured on the employee’s person at all times.

• Company Vehicles: No goods, including phones, SatNav etc belonging to staff should be left on show at anytime. Vehicles must be fully checked for security prior to delivering an item or making a collection.

• Banking: should be completed in a safe area, with doors locked and within easy reach of the PO. If an incident occurs call your line manager and take further advice.

• Robberies: In the unlikely event of a robbery do exactly what the robbers tell you to do and give them exactly what they want. Do not resist in any way. Follow the instructions detailed on the robbery tips. Immediately afterwards call the Police and call your line manager. Where possible please ensure any witness details are obtained.

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Maximising Revenues Sometimes whilst on round a customer may ask to close down their associated accounts e.g. All Sorted or Equipment Protection accounts. This usually happens when the customer is in arrears. This should only ever be a last resort as these services are valuable revenue streams and are also fundamentally important to preventing further debt if the customer later has a problem with their goods. If the customer is insistent on cancelling these accounts the following procedures should be adhered to.

Cancellation of "A" & "P" Accounts "A” & "P" accounts are crucial to ensure total peace of mind for our customers in the event of breakdown or theft of their goods. The weekly cost for them is low and in most cases, much cheaper than our competitors. Both are also a vital source of income for the company. These accounts should not be closed as a way of controlling arrears and the following practices must be adhered to if a customer wishes to cancel.

Cancellation of All Sorted "A" Customers must pay their "A" account up to date to the point that they wish to cancel (as they are paying in arrears and have already benefited from the cover).

Customers must write into the Regional Office to request a cancellation (a Collection by Consent form is not acceptable). This letter should not be taken from the customer during the collection; it must be posted to the Regional Office.

Customers are not entitled to have any payments made on the "A" account up to the point of cancellation (unless it is within the first 30 days of set-up) transferred to the "D" account—even if this is within the first year as they are paying for provision of loan sets, goods being collected and returned if repaired etc.

EPS: ("P") Customers must pay the "P" account up to date to the point that they wish to cancel (as they are paying in arrears and have already benefited from the cover).

Customers must write in to the Regional Office to request a cancellation (a Collection by Consent form is not acceptable). This letter should not be taken from the customer during the collection—it must be posted to the Regional Office.

Customers must provide a copy of their valid household insurance document.

EPS cannot be cancelled without this, as it is one of our underwriting requirements. The customer is not entitled to have any payments made on the "P” account up to the point of cancellation transferred to the "D" account as they have benefited from this cover unless they claim they did not request it in the first place and have proof that they had home insurance.

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Banking Banking should be completed at regular intervals throughout the day. Safe limits are £1500 per safe (£1500–1 safe, £3000–2 safes) and must not be exceeded whilst on round. There is no requirement to collect up to the maximum permitted safe limits before a deposit can be made. Banking should be completed frequently to minimise the risk of theft.

A clear down banking must be completed each day between 4.30pm and 5.30pm if there is more than £250 in safe or if there have been no collections banked for the day so far banked i.e. there must be at least 1 bank deposit per day for the current day’s collections.

Any money collected after the clear down banking must be reconciled at the end of the day and the Bank Deposit Slip completed. These takings must be deposited at the Post Office (PO) the following day.

There should be no more than £1,500 retained overnight in vehicles regardless of how many safes are fitted in the vehicle. If over £1,500 is collected after cleardown, the employee must notify line management and agree the actions that need to be taken. Line management must notify the Field Auditor and confirm that banking procedures have been followed correctly during the day to ensure non-compliance issues e.g. cleardown completed too early/not completed at all, have not contributed to the excessive cash being held.

NO money should be retained in homes overnight.

Collections from one day must never be combined and banked on the same slip as money collected on another day.

The employee should always park in a safe location and ensure all doors/ windows are locked/shut when completing banking preparation.

Daily Reconciliation • Count cash in the safe.

• All notes should be counted and separated into their respective denominations; coins should be bagged in denominations as follows: • When large volumes of coins are to be deposited, the individual £20 coin bags must be placed into the £500 bags provided.

• Mixed denominations of coins should not be placed within the same bags.

Any full bags e.g. £500 worth of £1 should be sealed & labelled as Buy As You View and with the date recorded.

• All cheques accepted must have the customer’s account number and date of collection recorded on the reverse. The details of each cheque must be logged and attached to the Weekly Banking Confirmation Sheet and must be passed to the Administrator for banking by 12 noon each Tuesday. Note: Post–dated cheques are not an accepted form of payment and should not

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be taken under any circumstances.

• When the cash has been counted and prepared for deposit this should be reconciled with the ‘underbanked’ amount displayed on the Panasonic Mobile Office (PMO).

• If there is a discrepancy in the money available i.e. over or under versus the ‘underbanked’ amount displayed on the PMO, the receipts issued since the last bank deposit should be checked to verify the value of the receipts issued match the collections posted (this check will identify if a payment has not been posted or an incorrect value has been applied to an account).

If there are any variances that cannot be identified through the receipt checking process, the employee must deposit the exact amount of available cash regardless of any shortages/surpluses.

✖ Under NO circumstance should employees make up a shortage in banking with their own money. ✖ Under NO circumstances should surpluses in banking be withheld/removed.

Line Management must be notified of any variances immediately.

• The paying-in book must be completed in full with a breakdown of the denominations listed on the both the paying-in slip and counterfoil sections.

• When the cash is deposited at the PO, the Clerk scans the barcodes on the paying-in slip.

• A receipt will be issued together with the paying-in slip as confirmation of the deposit. The PO receipt value must be checked and verified as correct to the amount deposited before leaving the Post Office.

Banking on the PMO • Select the ‘Banking’ icon.

• A breakdown of all payments collected for the week will be displayed on the left; un-banked payments are displayed RED and banked payments displayed GREEN. Cash and cheque payments are identified separately and any bank deposits already completed are listed on the right.

• As bank deposits are processed, the PMO will automatically calculate any difference between the payments posted and the values of the cash deposited. This will be shown as a discrepancy if applicable.

• Discrepancies will be displayed throughout the week and the totals are reset every Monday morning (providing the PMO has completed a successful end of week download).

• When the ‘Add Bank Slip’ icon in the bottom right hand corner is selected, this will display the bank slip entry screen. The ‘Calculated to Bank’ field is automatically populated by the PMO.

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• The ‘Amount to Bank’ field must be completed by the employee and must be the physical amount of cash available for deposit; any disparity between the two amounts will automatically populate in the ‘Discrepancy’ field.

• The ‘Name of Bank’ field is automatically populated by the PMO. • The ‘Receipt Amount’ field must be completed by the employee and must be the value of the PO receipt issued—any disparity between the ‘Calculated to Bank’ and ‘Amount to Bank’ fields will automatically populate in the ‘Discrepancy’ field.

• The Bank Slip Number and the Receipt Reference (Usually the ‘Session I.D. No’ on the PO receipt) fields must also be completed by the employee.

All details entered must be reviewed for correctness prior to confirming the Bank Slip through the PMO as errors cannot be amended after submission.

Cheque Banking The customer’s main D account number must be entered as the reference number for both the Bank Slip Number and APS Receipt Reference fields.

Saturday Banking The Saturday banking procedure remains the same as the rest of the week. The only exception is the procedure that must be followed after the post office has closed on a Saturday (usually midday). In these instances, the Bank Slip Number must also be used as the ‘Receipt APS reference’.

This is ONLY acceptable on a Saturday afternoon; the Bank Slip Number should NOT be used as the ‘Receipt APS Reference’ on any other day of the week.

In order that collections completed on Saturday are included in the current week’s collection reports, all bank slips must be created and closed (as above)

by Saturday afternoon/evening when collections have been completed for the day and the PMO fully downloaded i.e. the screen must display ‘last synchronisation completed’ with the current date and time showing as correct; a minimum of 1 second download time must be displayed to evidence the synchronisation has been fully completed.

Log Off/Log On Banking The employee must ‘log off’ the PMO at the end of each day. If there is any unbanked cash or cheques when collections are completed for the day (e.g. residual collections after cleardown banking between 4.30 & 5.30pm), the PMO will prompt the completion of the first stage of the bank slip for the outstanding amount. When the employee ‘logs on’ to the system the following morning, the bank slip that was part completed the previous evening will prompt full completion.

The ‘Amount to Bank’ and the ‘Bank Slip Number’ will have been populated the previous evening and will be greyed out. The employee must complete the ‘Receipt Amount’ and Receipt Reference’ fields when they have deposited the outstanding banking.

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Bank Holiday Banking Ensure that all money collected on Friday prior to clear down is banked between 4.30â&#x20AC;&#x201C;5.30 pm. Any money collected after this final clear down should be banked on the Saturday morning.

Any money collected on Saturday morning should be banked before the Post Office closes (12.30pm). Any cash collected after this (Saturday pm) will be small amounts and should be banked first thing on Tuesday. Any money unbanked at the end of Saturday should be secured in the safe with the safe cover on until it is banked on Tuesday.

These times are summarised below for easy reference: MONEY COLLECTED

MONEY BANKED

Friday prior to clear down

Between 4.30â&#x20AC;&#x201C;5.30 pm Friday

Friday after clear down

Saturday morning

Saturday morning

Prior to Post Office closing (12.30pm)

After Saturday morning (small amounts)

As a priority on Tuesday morning

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Arrears Management By entering into an agreement with Dunraven Finance Ltd the customer is committing to pay every instalment on time and in full. If, for some reason, the customer fails to do this and falls into arrears, then it is our responsibility to identify what caused this to happen and to agree a mutually beneficial solution to the problem.

Many of our customers manage their finances from week to week. Research shows that the majority of our customers are concerned about falling into arrears because it would be extremely difficult for them to catch up their payments. This is one of the main reasons why many find the meter so attractive; if set and used correctly, the customer should not fall into arrears.

Sometimes, when an unexpected bill arrives, the customer may not have the money to put into the meter. When this happens we must be quick to respond; once arrears start to accrue we have a limited window of opportunity to help the customer to get back on track.

We value every customer and want to ensure that we do everything in our power to keep that customer and maintain a positive relationship, even during times of difficulty. We also need to ensure that we carry out our collection activities in the most efficient manner, whilst protecting our customers’ rights, dignity and integrity.

Preventing Arrears By far the best way to control arrears is to ensure that customers choose to put Buy As You View high up their list of priorities when deciding what bills to pay.

Building strong relationships with your customers and giving them plenty of reasons to pay on time in full will be a factor in this.

CAMs, who successfully build and maintain solid relationships with their customers, will ensure that their customers continue to buy, make their payments ON ROUND and provide additional orders to sign up family and friends. By taking a pro-active approach, you will reduce the number of customers failing to meet their terms ON ROUND. We can only expect a customer to live up to their commitment if we live up to our own commitments.

Key tips: • Keep your promises & commitments, if you say you are going to do something, do it!

• Notepad all arrangements and communications with the customer to prevent the customer receiving unnecessary communication as this could constitute harassment.

• Be open and approachable so that customers come to you early with their problems, the sooner you can help them avoid falling too far into the arrears cycle the better.

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• Communication is crucial and everything should be done to keep communication channels open to work towards a solution.

• Explaining customer obligations and commitments at the point of sale, it is a joint contract.

What to Do When Clearing Arrears on Customer Accounts When a customer falls into arrears it is their obligation to clear the amount overdue in a timely manner. Upon clearing their arrears, it is important that you reinforce the customer’s commitment to honour the terms of the agreement and gain confirmation that the problem has been addressed and payments will be made on time in the future. Doing so, will educate the customer that their scheduled payments are important. This will also ensure that the EPS and All Sorted Cover remain in place and will improve the customer’s credit rating with us.

Dealing with Problems Dealing with problems in a timely and effective manner is absolutely crucial.

Failure to do so can put the relationship with the customer at risk. The sooner we make contact with the customer and make an arrangement, the less likelihood there is of the account continuing through the arrears categories.

Taking ownership of the problem, keeping the customer informed and following up to make sure any promises are kept, will ensure that the customer continues to allow us to collect money owed. This will prevent the likelihood of the account resulting in write-off.

It is impossible to establish the best course of action for a late paying customer without first establishing what led that customer to pay late. Essentially we have four types of customers:

Customer Types Type 1

Type 2

Can pay and do pay

Can’t pay but want to pay

75% of all customer collections fall into this category. These customers must not be neglected and the CAM must continue to build a strong relationship with them.

Type 3

Commonly these will be your customers who part pay. Often the customer will make every effort to pay on the day or, if not, later in the week. Utilising the meter often resolves the situation.

Arrears Customers

Can pay but don’t want to It could that a service issue has arisen or that something has happened to the customer’s financial circumstances. The CAM needs to establish the reason for the lack of payment and offer support and solutions.

Type 4 Can’t pay and won’t pay

First payment defaults may appear in this type. Review the customer’s payment history to establish what solution could be offered. Often a Company Return may be required to resolve the situation.

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Why Do Customers Go into Arrears?

Causes & Solutions TYPE 1: OCCASIONAL ARREARS

POTENTIAL SOLUTION

Establish the cause for the arrears

Pay in full that day (card payment option)

Always keep commitments (or could end up as Type 3)

Pay short on later date

Recognise key times of year where yields may drop or DD may bounce (Bank hols)

APS (approx. 4 wks max usually, longer if necessary)

Adjust the meter

Possible deferral: refer to criteria

Change to MKIV Meter

-

Give them contact number for future

-

TYPE 2: UNEXPECTED ISSUE

POTENTIAL SOLUTION

Establish the cause for the arrears and how long this problem will exist.

Pay in full that day (card payment option)

Ensure that ongoing weekly terms are met & cleared within 8 weeks

Pay short on later date

Identify this type of customer from their payment history

APS

Change to MKIV Meter

Possible deferral: refer to criteria

Conduct review to agree suitable solution & timeframe

Possible FSR: refer to criteria

Gain commitment

Consider downgrade

Give them contact number for future.

Consider part return Consider full return but leave door open for return if they manage to resolve their issues

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TYPE 3: DELIBERATE ARREARS

POTENTIAL SOLUTION

Establish, â&#x20AC;&#x153;Why do they not want to pay?â&#x20AC;?

Pay in full (card payment if required)

Review their payment history

Pay short on later date

Has there been a trigger or unresolved issue e.g. customer is rejected for a Secondary Sale or service problem?

APS

Require more effort to resolve (may need management intervention)

Possible deferral: refer to criteria

Agree a course of action & gain commitment back

Possible FSR: refer to criteria

Keep our commitment or problem will escalate

Consider downgrade

Take ownership

Consider part return

Be sympathetic, apologetic & understanding

Consider full return but leave door open for return if they manage to resolve their issues

Deal with the problem

-

TYPE 4: FIRST PAYMENT DEFAULT

POTENTIAL SOLUTION

Is there a problem with the meter, is it set correctly?

Full payment within 24 hours

Review payment history, did they stop paying from the start?

Full return

If not establish why they have now

-

Have they absconded?

-

Prop & trace (refer to Trace policy)

-

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Other Reasons for Arrears Death in the family Key Tips...

• Always offer condolences before anything else. Respect the customer’s grief, show concern and sympathy.

• Your approach needs to be very soft. This can be reflected in your tone of voice.

• Always try to establish the relationship of the deceased to the customer e.g. “I am so sorry.

Is it someone close?”

• Ask the customer when it would be convenient to call back. Offer alternative days.

• Record that there is a death in the family in the customer notes for future reference.

Family member in hospital Key Tips...

• This can be as sensitive an area as a death in the family. The customer must always be given the benefit of the doubt.

• Show concern and sympathy e.g. “You must feel dreadful; it’s such a worry when loved ones are ill.”

• Establish the seriousness of the illness e.g. “How long is she likely to be in hospital?”

• Ask if it is convenient to empty the meter e.g. “I appreciate that it’s probably very hectic for you right now, will it be convenient if I quickly empty the meter for you and leave you to get on?”

• If the answer is no, then try to establish when it will be convenient to call. You may even have to say… “I’ll call back in a few days to see how things are.”

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It’s not my house, I don’t live here Key Tips...

• Develop a conversation with whoever answers the door as opposed to developing a confrontation.

• Ask the person who answers the door to confirm the customer’s telephone number. Ask “When will they be at home?” If they say that the customer is away then ask if there is a contact number.

• Advise that you will ring the customer. It would then be useful to ring the customer as soon as possible. If the customer then answers the phone, the CAM can request and arrange a convenient time to collect.

• Remember to notepad any arrangements.

My mum & dad are out Key Tips...

• CAMs need to be particularly mindful when dealing with minors (under the age of 18 years old).

• Under no circumstance should you attempt to enter the house when an adult is not present.

• Ask the child “Do you know when your parents are back? …Please tell them I am in the area later today and I will call back.”

• Confirm that you have the correct telephone number.

• Call back unplanned.

Payment isn’t due, you are early Key Tips...

• If round changes occur, explain the situation to the customer, e.g. “Periodically we have to change collection rounds in order to ensure that we can provide you with first class service.

In such circumstances it generally means we call earlier than 8 weeks, which I appreciate may be inconvenient.” (may be suitable for deferral.)

• Advise the customer that we are only collecting the number of weeks due since the last collection and not the full 8 weeks payment, e.g. “You will be pleased to know I am only collecting the 3 weeks due.”

• Establish how much money is in the meter, e.g. “I don’t think I have enough in my meter”…

“Don’t worry, you may be pleasantly surprised, let me check for you and then we will know where we are”… “Thank you.”

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HO said I can pay next week Key Tips...

• Remember… only in exceptional circumstances would a member of the Home Office team be drawn into discussing exact collection times. In such cases, an Account Enquiry will be raised to inform you & the notepad should support.

• Your response should be “No problem. However, would you mind if I emptied the contents of your meter whilst I am here. You will then know how much you will need to make up the payment due.”

• Your aim should be to politely gain access to the coin meter to identify the problem.

Once this is achieved, establish the problem and proceed as previously advised.

I’m dealing with solicitors/Debt Management, speak to them Key Tips...

• Express sympathy/understanding. Those customers who have gone to a Debt Management Company or a solicitor are facing up to their financial difficulties. They may be very embarrassed with their current situation.

• You should inform the customer that "We will correspond with the Debt Management Company. However, they are unable to deal with secured loans or hire purchase agreements. The agreement you have with Dunraven Finance Ltd is actually hire purchase and you have agreed to repay the balance via the meter."

• The CAM must establish the name of the customer’s solicitor/debt manager and gain contact numbers. This must then be note padded via your PMO Toughbook.

It is important to advise the customer of the following: • "The products you are purchasing from Dunraven Finance Ltd are secured by the hire purchase agreement and remain the property of the Finance Company until such time that they are fully paid for."

• "If you need clarification I'm sure the Debt Management Company will confirm our position if you ring them."

• Enquire if they have their copy of their agreement available. If not, offer to collect a copy from the area office. This will be required to provide details to the Debt Management Company over the telephone.

• Once the customer understands our position and the Debt Management Company have confirmed it, the situation can be dealt with from here on as a "normal" arrears situation.

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I can’t afford them anymore, can you take them back?

Key Tips...

• Establish all of the facts i.e. reasons why. Ask the customer exactly what the problem is, the problem may be an underlying dissatisfaction with our products or service.

• Ask the customer if the problem is likely to be long or short term.

• Confirm that your aim is to help in any way you can. If the problem is with service, contact Customer Services immediately and demonstrate your concern with the customer.

• Report back to your Field Operations Manager who will inform senior management of the problem.

• See the problem through and speak to the customer once it has been resolved to ensure their satisfaction.

• If the problem is financial, look at the options available as previously noted.

• Remember a low payment is better than no payment or goods back we can’t re-sell.

My benefits/salary have been reduced/stopped/redundancy Key Tips...

• Show concern/sympathy.

• Establish how long is the customer likely to have the problem and if there is any indication of when the problem is likely to be resolved.

• Look to politely gain access to empty the meter and to establish the extent of the problem.

• If the problem is short term, ask the customer when they are likely to be able to pay the shortage in full. Arrange to call back at the end of the week to empty the contents of the meter and agree a timescale to make up the payment in full.

• If the problem is long term or insurmountable, look at the possibility of Fresh Start Refinance (FSR), Part-Return or Full Return (as a last resort).

My partner has left me Key Tips...

• Be sympathetic and show concern.

• Ask the customer to confirm their wishes in respect to the account. Are they looking to return or retain the products? Can they afford them? If not, what options are available?

• Fresh Start Refinance to reduce terms?

• Part return to reduce commitment?

• Full return where problem is insurmountable?

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Customer is watching another TV Key Tips...

• • • •

Establish why. Is the meter set too high or low?

Establish what has changed since the last collection.

The customer may state that they cannot afford payments. Ask what they can afford.

Your aim is to get the customer back into the habit of using the meter. This may mean that you have to offer free hours to foster a working relationship.

• Ensure that you notepad any arrangements agreed. Remember to discuss the issue with your Line Manager in your daily debrief.

Customer is aggressive Key Tips...

• If a customer becomes aggressive during a telephone conversation, take control by re-stating the purpose of the call. Determine the underlying causes for the hostility if possible. Stress that you are there to help but you have to understand what the problem is.

• If you can resolve the problem, inform the customer that action will be taken. If the customer refuses to listen, express regret and inform them that you will call again later.

• If a customer becomes aggressive or abusive during in-home contact, attempt to calm the customer by determining the cause of the hostility. The customer may have a legitimate complaint that can be worked out quickly. Always try to hold the conversation inside the customer's home. If the customer has visitors, you might hold the discussion outside or simply leave.

• If the customer asks you to leave, indicate your concern that nothing will be accomplished by leaving the problem unresolved. Try to position yourself close to an exit point. Remember, never become aggressive yourself. Keep a professional manner. If the customer does not change his/her mind, LEAVE!

Customer deceased Key Tips...

• Contact the closest relative and explain the situation of the account. Obtain a copy of the death certificate, complete an incident report and then forward a copy to the ROM. • Under the terms of the hire purchase contract, the account will be write-off providing a death certificate is produced and the RM has authorised the request.

• If the relative requests us to take the goods away as they have no use for them we can (always complete a CbyC) but otherwise they should be left.

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Product stolen Key Tips...

• If the customer has insurance, verify the name of the company and the policy number.

• If the customer has Equipment Protection Scheme which was up to date at the time that the account was last collected, the account will be a valid EPS claim under the EPS guidelines.

• The customer must call Castelan to report.

• If the customer has no EPS or it is not up to date the customer is still responsible for clearing the balance on their account regardless of whether they still have the product.

• If they are claiming through their household insurance, they must continue making payments until a successful claim is made against their house contents insurance.

• If the customer has no insurance or EPS to cover the repayment of the product, determine the market value of the product and collect this amount from the customer. If the customer cannot afford to make a lump sum payment, agree a weekly repayment that they can afford.

Absconder Key Tips...

• A customer is considered to have absconded when they cannot be located at their given address. There are generally two types; the customer who intentionally avoids obligations and the customer who fails to leave a forwarding address. For specific information, refer to the Tracing section of this manual.

Product has been pawned or sold on Key Tips...

• A pawnbroker is legally obliged to refuse a product that is not owned by the person intending to pawn it. However, there are times when our product is pawned and purchased by another person.

• Under the Terms & Conditions of a HP agreement, the customer does not own the goods until the agreement is fully paid off. Therefore the customer does not have a legal right to sell the goods. The best defence against such activity is to establish rapport with local pawnbrokers so that they are willing to communicate regarding the pawning of our products.

• The same applies with cash converters.

• Establish who it has been sold to (pawnbrokers or shop) and visit with the credit agreement advising them that we own the product.

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Landlord has possession of our product Action the following...

• Sometimes our customers will move away and leave our products in their former residence.

If a landlord has a claim against the person and has our product, it may be difficult to recover. Establish a good rapport within the community to minimise the risk of losing products in this manner.

• If able to collect get the landlord to sign the term ticket and write a statement at the bottom with name & contact details stating goods were abandoned.

Customer involved CAB or Trading Standards Action the following...

• Upon contact from either the CAB or TSO, take the details of the customer’s complaint.

Under no circumstances should you discuss any of the customer’s details with the CAB or TSO representative, even if they state that the customer has given them permission to do so, this must be provided in writing before you can do this.

• The customer’s permission must be recorded on their account to enable us to discuss the account with anyone other than the customer.

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Debt Management Tools Many people shy away from terms like ‘Arrears Control’ or ‘Debt Management’.

However, once you learn that the key to good arrears control is good problem solving skills and that the vast majority of our customers fear falling into arrears, the majority of perceived challenges around this area of work diminish. There are essentially two types of problems, those caused by Buy As You View and those that we have no part in. It is important to evaluate which type of problem you are dealing with in order to speed up the problem solving/action stage. This will get the customer back on track sooner rather than later. Should we find that the problem is our fault, it is in your power to ensure it is fixed quickly, therefore taking away any reasons for the customer to continue not to pay. If the cause of the problem is outside of our control, you need to focus on problem solving with the customer to find a solution that is mutually agreeable. Whilst we accept that from time to time issues may arise that require us to work with customers to solve the problem, it is important to remember that the customer has a responsibility to honour the terms of their agreement. Regardless of the cause of the problem, all customers should be treated in a professional manner and given respect. When deciding on a course of action, you have two options, either keep the customer or terminate the account.

Each CAM will have to work within policy and discuss any concerns with their manager. No customer contract should be terminated without prior discussion with a manager to ensure everything possible has been done to save the customer except in exceptional circumstances where either the employee or the goods are at risk and there is no opportunity to discuss.

Factors to consider when making a collection: • • • • •

Ability of the customer to pay.

Willingness to pay.

Condition of the financial circumstances.

Cost of collection.

Economic cost of recovery.

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You should pay close attention to customers who regularly fail to meet their weekly terms. Be prepared to act quickly when ‘danger signals’ appear. Danger signals include: • A long term customer who suddenly fails to pay.

• A customer has had a Secondary Sale and they begin to fall into arrears.

• A new customer who wants to buy multiple products in a short period of time.

• A customer who makes excuses for breaking commitments.

• Customers who fail to pay on their first scheduled payment (First Payment Default).

• A customer whose telephone is disconnected.

• A meter that has no viewing or no connection.

While there are many other signals that indicate potential problems, we must not take a ‘good paying’ customer for granted and we must not be too quick to ‘judge’ the ones who become delinquent. Actions that we would take for good customers who are rarely late would not be the same as that we take for regular offender e.g. clearing down the hours, locking meters etc.

Every arrears customer we intend to work with to keep MUST have a Mark IV fitted unless they have an Optica television.

When to Keep the Customer You should work hard to keep all, type 1 and 2 and the majority of type 3 customers. When trying to keep a type 3 customer, it is often necessary to work on rebuilding their trust in our company.

You should use all the tools at your disposal to keep a customer, such as: • Early identification of issues from the Mark IV console.

• Using the meter settings and automated APS to ensure that the customer is inserting enough to cover their weekly terms and any arrears they may have.

• Meter hours can be refreshed and meters restricted, providing the policy is followed and we are not being unfair.

• Using the MKIV Meter for both ‘Cash’ and Direct Debit paying customers to try to support a reduction in arrears.

• Allowing customers to clear their arrears over a number of weeks by paying extra on top of their normal weekly terms.

• Agreeing a set weekly payment amount to demonstrate the customer’s commitment to pay. If they stick to this commitment, Deferment or Fresh Start Refinance is an option.

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â&#x20AC;˘ Increasing the number of visits to the customer to keep them on track and focused on paying. â&#x20AC;˘ Seeking approval to Fresh Start Refinance a customer whose circumstances have changed and who has proven affordability and willingness to pay.

Home Visits The majority of contact with our customers takes place in their home. Preferably we would like to make contact with them at home when they appear ON ROUND for collection.

Given that Rounds are normally set up by geographical areas, it is most cost effective to call upon customers whilst working in that area. When customers fall into arrears you will find that these accounts may not be close to where you are collecting that week.

When this happens, careful route planning and prioritisation should be given to ensure that you effectively clear your normal round, whilst ensuring arrears customers are resolved and that commitments made to repay shortages are taken into account. Sometimes trying to resolve a customerâ&#x20AC;&#x2122;s problem can only be done on a one-to-one basis. This is especially true with first payment defaults and customers whose accounts are chronically late. The only way you can effectively resolve a collection issue is if the customer invites you into their home to discuss the matter with them. They will only do this if they feel that you genuinely have their best interests at heart. Spending time with your customer demonstrates respect and determination to resolve the collection issue for mutual benefit. A one-to-one review will build a strong relationship with your customer, help prevent future collection issues and ensure that the customer understands their obligations under the Hire Purchase Agreement.

The goal of the visit is to eliminate the reasons that are preventing the customer from paying on time. Another purpose is to ensure that both parties understand their responsibilities and obligations under the Hire Purchase Agreement and are living up to them.

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Review Account Details The purpose is to gather all the relevant information about a customer to ensure that our data is up to date and to ensure that you have the right background information to make informed decisions around the accounts. Information required includes: • • • • • •

Telephone numbers.

Address.

History of payments.

Customer notepads.

Any commitments.

Any other information.

Evaluate the Account (Through Reviewing the PDFs) In order to determine the type of customer and therefore the steps to take you need to look at: • • • • • • • • •

Number of times they have fallen into arrears.

How long has the customer held an account with us.

How much the customer has previously paid.

Amount of arrears on the account.

Number of weeks they have been in arrears.

Recorded commitments/broken commitment history.

If the customer has had any service issues or complaints in the past.

The full history of the account, including note-padding.

Any recent purchases made by the customer.

The information gathered when you evaluate the customer’s account details will be used to establish the tone of the arrears activities/conversations. If a customer is only 1 week late, they may just require a gentle reminder. Whereas, a more formal review may be appropriate for a customer who is 5 weeks in arrears, has avoided contact and has a history of breaking commitments.

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The key things to remember on a customer visit: • Always keep in control of the conversation.

• Encourage open and honest conversation, establish rapport, and use their name.

• Conduct reviews in private.

• Express your concerns about the account.

• Assure them you want to help them to continue to keep their account and meet their terms.

• Determine the problem; has something affected their ability to pay?

• Identify the cause; have we let them down?

• Ensure that the customer understands the options available to them if they get into financial difficulties.

• Remind them that they are a valued customer.

• Confirm your understanding throughout the conversation.

• Explain that their potential to own the product will be achieved by following the terms of their agreement.

• Go through the terms again to confirm their understanding. Ask them questions to ensure they completely understand.

• Decide on a mutually agreeable, positive solution.

• Close the agreement by highlighting our expectations of the customer and our responsibilities.

• Summarise your conversation.

• Notepad the commitment.

• Follow-up on any actions you agreed to take to resolve the issue.

• Monitor the account until you are happy the issue has been resolved.

Customers may choose to seek advice regarding their account with an outside party such as Citizen’s Advice Bureau (CAB) or family member. These parties may contact Dunraven Finance Ltd to discuss the customer’s account.

This is permitted providing we have obtained written confirmation from the customer stating that they permit this communication.

Below is a customer telephone/email contact list of debt support agencies which can be given to the customer to provide guidance and advice when tackling a debt situation.

Citizens Advice Bureau: (www.citizensadvice.org.uk) Debt Advice Trust: Debt Solver: National Debt Line: Best Solution: ClearDebt:

Refer to local offices 0800 954 5519 08000 434 336 0808 808 4000 0800 031 9450 08000 192 095

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Notepad Always update the customer’s Notepad with details of collection activities. You should take notes for the following reasons: • To document what attempts you have made to contact the customer (making notes whether your attempt was successful or not).

• To document a commitment you have gained from the customer.

• To record what you think is the best time to contact a customer (BTTC).

• To back up the tag or denote what the issue is with the account.

• To give full visibility of the actions and follow-up that has been taken to anyone else who may view the account.

• To provide useful background information to refer to later, i.e. description of the house or customer.

The minimum requirement is one notepad entry per arrears customer per week; this is measured on the Note padding report on the Mark IV console down to CAM level so at any time there is visibility of the CAM, FOM and regional performance on note padding. This is a good indicator of the level of arrears activity taking place. The system also allows us to drill down to customer level and captures all customers as seen below (customer address blurred for data protection reasons), not just Mark IV. By clicking on the account we can go straight into the customer account.

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Tagging When an account falls into arrears, field based staff are forced to “TAG” and Notepad each account according to the customer’s circumstances.

Tag types are: U BSTP BDD FB GS HOL LJ MBI ILL NW OC RTP SVC WPD NAH CRA ANP IT ABS

= = = = = = = = = = = = = = = = = = =

untagged benefits stopped bounced DD family bereavement goods stolen holiday lost job meter break-in illness not watching TV/watching different TV over commitment refusing to pay service issue wrong payment day not at home customer refusing to answer adult not present inconvenient time absconder

The tag shows on the CAM report and we also have a separate tagging report on the Mark IV console which takes into account every customer’s tag type not just the Mark IV customers.

It also enables us to see what percentages of customers in each arrears bucket have been tagged, breaking it down into tag type as per the screen below. This is critical information for identifying what the reason is for the arrears situation and deciding how to resolve it. An arrears PDF print can be generated whilst reviewing these (for either a single account or a tag type).

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Arranged Payment Schedules (APS) Depending upon the amount of arrears and reason for lateness, you may allow a customer to clear their arrears over a period of time. Once a customer falls into the arrears cycle, you generally have 8 weeks to collect all payments due and to clear the arrears on the account. By allowing up to 8 weeks, you should be able to solve most arrears problems. You can set up an Agreed Payment Schedule in consultation with the customer. The customer must not be set up without being informed.

In order to create an APS, the customer must already be in weekly payment mode, if not, you will receive a message, stating this should be completed first from the main customer Summary Tab. If you have to change the customers meter to run in weekly then you should ensure that you set the weekly repayment to the minimum Oracle weekly terms, rounded up to the nearest whole pound. You should also set the payment day to the day that the customer gets paid. If the customer does not have a Mark IV they should be changed over to one as a priority.

When visiting a customer who has gone into arrears, establish the following: • • • • • •

Why they are in arrears? Tag the account accordingly.

What type of meter they have? Change it if required.

Will they be able to bring their account up to date within the week? If not: How much can they afford to pay within the week?

When can you make your next collection?

How often should you visit to help them get back on track?

If the customer cannot clear their full arrears the same week and APS should be set up with a set weekly payment agreed for a set number of weeks. The CAM can set up an APS; this can be done from the PMO. Alternatively it can be set up from the Mark IV console. Any APS shows in the final column of the CAM report.

The APS report on the Mark IV console shows the arrears buckets split into Cat 1-4/5-8/9-16/17-24/25-31/31+ and overall. The numbers are the percentages of customers in each of these buckets with APS set up. This also drills down to customer level. By setting up an APS the console will automatically generate a meter call for the day the next payment is due for as long as the APS is setup.

This is much more reliable than making notes in diaries etc., so should be fully utilised.

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All of this data helps us build up an idea of where arrears activity is being focused on and driven. It will also enable us to have an idea of how many potential resolutions we have coming through.

Collecting cash is key and we should be aiming for 3% of all arrears cash outstanding to be collected by round per week.

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Telephone Calls Use of the phone to contact customers in arrears is a very cost effective way of gaining commitments and making appointments to empty the meter. The key, as with most arrears activities, is to be both diligent and persistent when trying to contact customers who are difficult to contact. Once an arrangement has been made with a customer, it should be note padded and no further contact until the arranged time or commitment has passed. Further calls could constitute as “harassment”. Failure to notepad follow-up could lead to claims of harassment if other parties attempt to contact the customer e.g. Customer Services.

The phone is a good tool for contacting customers in debt. The following guidelines should be used when contacting a customer by phone.

Note: You must not text the customer with arrears details.

Debt Call Checklist Getting the background knowledge • • • • • • • • • •

The reason why the account is in arrears.

Was a commitment broken and when?

What stage of arrears are you looking at?

Have we let the customer down—we can only expect a customer to live up to their commitment if we live up to ours!

What type of meter is in use (or not as the case could be)?

When are they home—check previous collection times/viewing profile .

Amount of arrears currently outstanding.

Specific highlighted reasons for the current arrears.

Double check proposal form for secondary telephone numbers or check telephone changes on “View Details” screen.

Ring the current CAM if required for background knowledge.

Analysing the Customer’s Account • Look at the customer PDF, it shows you all the details of when the account started to go wrong.

• How much have they paid into which account(s)?

• How many times have they been in arrears?

• Is there a pattern of dates when payments are made/collection times?

• What is the current value of the product/products?

• Does the product have a history of service/account problems?

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• What is their past history on keeping commitments?

• Has something affected their ability to pay recently (additional goods/ change of circumstances)?

Be organised. A cluttered environment, cannot produce clear results, a clear mind, focused approach delivers the result. Things to have in front of you: • • • • • • •

“Oracle” open on the customer account details (where possible).

Debt Call template.

Pen and paper.

Calculator.

Customer PDF. Access to card payment facility.

Mark IV console open.

Identify the correct customer • Request that the customer confirm their full name and address and verify last goods purchased.

• If you are talking to someone other than the customer and they do not ask what company you are working for then you should only give your name.

• It is prohibited by law to discuss a customer’s account details with a third party unless we have prior written consent from the customer.

• You may ask questions to establish when the customer will be home.

• You may ask where the customer is working and if it is possible to call them at work.

• You may leave your name and number and explain that it is important for the customer to contact you as soon as possible.

• Customers may choose to seek advice regarding their account with an outside party such as Citizen’s Advice Bureau (CAB) or a family member.

These parties may contact us to discuss the customer’s account. This is permitted providing we have obtained written confirmation from the customer stating that they permit this communication. The account should be note padded to verify that this confirmation has been received and a copy of the communication should be scanned onto the customer’s account for future reference and further validation. Dunraven Finance Ltd must not give any information to anyone other than those authorised by the customer, to do so would be breaking the law. (Continued overleaf...)

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Identify the correct customer (...continued from previous page) • You must not rely on someone to relay a message for the customer. Instead you should call back at a suitable time. If you are struggling to contact the customer, you should consider that the customer may be avoiding you and that other means of contact will need to be used. One good practice is to note the time of calls so that you can establish the best time to achieve contact.

Identify who you are and the company • Once you are sure you are talking to the customer, identify yourself and the company to ensure that you do not violate the OFT Debt Collection Guidelines.

• State the reason for your call.

• Depending upon the number of weeks late and how often the customer falls into arrears, you have several possible approaches to the opening of your call. Once you are speaking with the account holder you could either say: • “Hello, (customer’s name) this is (your name) from Dunraven Finance Ltd. Your Account fell into arrears on <date>. What time will you be at home today for us to collect your payment?”

• Alternatively: “Hello, (customer’s name) this is (your name) from Dunraven Finance Ltd. I’m calling to find out what time you will be at home today so that we collect your payment.”

• These are only examples. The key is to always mention that the account has fallen into arrears. You should state that the purpose of the call is to clear the arrears either that day or the following morning to ensure that a collection is made.

• Once you have made your opening statement, don’t forget to make a strategic pause this will place the responsibility with the customer.

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Listen and Respond • Listen until the customer has completely finished their initial remarks. You may find that your call has been successfully completed immediately.

• Your response should show understanding and concern but get control quickly by re-stating the purpose of your call.

• Explain why the arrears must be cleared today. Explain that the formal agreement has been breached.

• If applicable, advise the customer that whilst their account is in arrears, their Equipment Protection Scheme and All Sorted (service cover) will be invalid.

The consequence of this is that their product/products are not covered for accidental damage, theft or call out repairs.

Discuss options • If the customer decides to clear their arrears that day, arrange an exact time and confirm an appointment.

• If the customer will not clear the arrears that day, a future commitment must be made. Both you and the customer must agree on the terms of the commitment which should not extend beyond the current week.

The following are some tips to help you negotiate effectively: • Keep the customer's attention by asking questions.

• If the customer’s attention begins to lag, regain it by altering your voice level or speaking more rapidly, lowering your voice or changing it to a slower and deliberate tempo.

• Assume the response you want by phrasing your questions and requests positively and with assurance e.g. "Will I expect you to be in at 2 pm?"

• Stay in control of the conversation by re-stating the purpose of the call whenever the customer attempts to get you off track.

• Obtain specific commitments from the customer. Determine the correct amount of money to be collected, the date and the time agreed upon.

Inform the customer that you will document the commitment and expect it to be kept. The customer must understand that you take the commitment seriously.

• Update notepad with specific details.

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Chapter Three

FDM Field Debt Manager

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Field Roles & Responsibilities All field employees have a responsibility to lend wisely and make sound, commercial decisions, making the correct decisions at the front end will support improved collection practices which will ensure that each customer is as profitable as possible for us. Excellent customer service will also be a factor in this. Below are the main roles and responsibilities which impacts collections and arrears for each field role.

Field Debt Manager: Collections • To effectively manage week 5–39 Debt.

• Ensure debt is segmented into the four customer types on a weekly basis in order to determine the best resolution.

• To achieve cash collection targets.

• To ensure resolution targets are achieved.

• To drive improved meter control and efficiency.

• To provide advice, guidance and options to customers who are in financial difficulty, which is affecting their ability to make the required repayments to Buy As You View.

• To ensure that the customer is treated fairly at all times.

• To complete Customer and Company Terminations as and when required in a professional and courteous manner.

• To carry out new business assessments within required timeframes.

• To follow Company guidelines and collections policy regarding arrears activity.

Field Debt Manager: Arrears • • • • • •

Tag all arrears customer Notepad every arrears visit, even if visited more than once daily Attend all Cat 5+ arrears meter calls Ensure every meter is working & connecting on every visit Work with CAM Remember Cat 5–39 is YOUR measure

Part return

Customer return

YES

YES

Down sell (exchange)

NO

Is customer short by much

N.B.

YES

Company termination

1st payment default

Customer in Arrears

NO

NO

FSR after 4 weeks

YES

Able to pay reduced terms

YES

Able to pay UTD within 4 weeks

NO

Able to pay UTD by end of week

YES

Customer comitted to pay

NO

YES

NO

Able to pay full weekly terms

Set up APS

Arrange call back

Customer return

YES

Defer after 4 weeks

Collect as per APS

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Arrears Decision Maker

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Deferment What Is a Deferment?

A deferment is extending the length of the agreement without changing the weekly terms or resigning any agreement. It simply extends the length of the agreement by the number of weeks deferred. There is no additional interest charge or arrangement fee.

Situations Where We WOULD Consider Deferment: • Where a customer is in arrears but has now demonstrated they can maintain terms by paying 4 or more weeks terms after the first short collection, i.e. there must be 4 payments where the arrears have not increased since the previous payment. The most recent collection should be in the same week as the deferment is actioned.

• Where there has been Round Optimisation or where Round Changes have taken place which have changed a customer’s collection date extending the period between collections; the customer must have met 80% of the terms due at the point of collection to qualify for deferment. If the period between collections has shortened, the account will be kept out of arrears cycle after the first collection and must pay a minimum of 8 weeks payment on the next collection to qualify for deferment.

• Where there has been a service or delivery issue, complaint or claim which we have failed to resolve promptly which has subsequently led to the customer falling into arrears. In this case, the account may not be deferred for more than the number of weeks that this has affected the customer.

• Where a customer has had their TV and/or cash stolen from their meter and they cannot make up the shortfall. This needs to have been reported to the police and a Crime Reference Number entered on the notepad. The deferment can only be processed once a new meter has been installed.

• Where the customer has suffered the bereavement of an immediate family member and it would be insensitive to contact the customer for arrears.

• In an event or circumstance which makes it very difficult for the business to collect from the customer (see Force Majeure.)

In all instances, the reason for the arrears must be note padded and the customer must be in possession of the goods or awaiting the completion of an EPS claim.

Deferment will not be permitted for more than 52 weeks on any agreement or where there has been a deferment in the last 16 weeks as this would suggest the customer has immediately gone back into arrears.

Direct Debits Where a direct debit has been set up to meet the deferment criteria, customers are required to have successfully made a minimum of 2 consecutive monthly payments or 4 successful consecutive weekly payments before their account

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qualifies for deferral. A weekly direct debit is the preferred option. Deferments will only be actioned 2 working days after the payment has been taken to ensure that it has not been returned by the bank, e.g. an account with a direct debit payment showing on a Monday could not be requested for deferment until the Wednesday. Any payments showing on a Thursday or Friday cannot be submitted for deferral until the following week.

How Long Should the Deferment Run For? This is calculated by looking at the arrears outstanding divided by the weekly payment and then rounded up to the nearest whole week e.g. £66 arrears with weekly terms of £10 would be 6.6 weeks so deferment would be for 7 weeks.

The deferment period is not always the same as the arrears category.

An automated deferral programme runs daily whereby any accounts with sufficient funds collected and fulfilling the above criteria will automatically be deferred. For adhoc requests such as service issues etc. deferment requests should be submitted on a spreadsheet with details of the request fully completed and should be sent to the Audit and Compliance Department who will then review and notify of whether approved.

Those, which have been approved, will be forwarded to IT to defer at loan book shutdown.

Fresh Start Refinance (FSR) A Fresh Start Refinance (FSR) is the refinancing of an account over an extended period of time which can lower the customer’s terms to make them more affordable. The customer is not charged additional interest and the only additional charge is an arrangement fee to cover administration costs (currently £45).

It is important to note that FSRs can have a significant detrimental impact on cash collected and profits.

The new agreement should be over the shortest possible time that the customer affordability and new terms can support.

Situations Where We WOULD Consider FSR • The customer has demonstrated willingness to pay but is unable to meet their full weekly terms.

• Customer has made a minimum of 4 weeks’ worth of consistent payment after the first short collection to demonstrate what they can afford to pay.

• Overall arrears must be at least £50.

• The customer must have goods in situ.

• The FSR should not extend the customer’s original agreement by more than 12 months (unless it falls under the exceptions criteria).

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Where an FSR is processed for the goods, the A account (maintenance), P account (EPS) and any parallel D accounts will automatically be deferred.

How Long Should the FSR Run Over?

Before the decision can be made to FSR a customer’s account, the terms and available extension period need to be calculated to establish if this is the correct action to take.

If the customer has been sold to within the previous 6 months, a part return should be considered before an FSR is actioned.

New Opening Balance The £45 arrangement fee should be added to the current balance of the “D” account to give the new opening balance. If the customer has more than one “D” account and these are to be merged, the balance for all the accounts that are to be merged should be included.

Affordable Weekly Terms The total amount collected since the shortage should be divided by the number of weeks this was collected over (at least 4 weeks since the first short) and the weekly terms of all accounts not to be included in the FSR then deducted to establish how much the customer can afford to pay weekly for the accounts to be included in the FSR. This must also be supported by a fully completed FSR Income and Expenditure Assessment Form. These forms are located on the Intranet under Risk and Audit> Forms>Appraisal Forms.

Extension The New Opening Balance should be divided by the New Weekly Terms to give the number of weeks over which the debt should be rescheduled. Agreements can only be set over 26, 39, 52, 65, 78, 91, 104, 117, 130, 143 or 156 weeks.

If the resulting figure is not one of these numbers, round UP to the next number in this list. Rounding down will result in an increase in terms which the customer may not be able to afford.

The difference between the date the current agreement is due to close and the date the new FSR agreement would close must be calculated and if this is greater than 12 months then the FSR cannot be processed.

Any previous FSRs also need to be taken into consideration—if the agreement has been FSR’d in the last 3 years then the extension given at the time should be added to the extension that is to be given now. Again, if this is longer than 12 months then the FSR cannot be processed. An FSR should never increase a customer’s terms.

Customers need to be aware that they will not normally be able to purchase further goods for a period of 9 months after their FSR. After this period, applications to purchase further goods will be considered in the normal way.

Authorising & Processing an FSR Field management should review the accounts to be FSR’d which must then be

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authorised by the RM and an FSR Authorisation Form fully completed. The paperwork then needs to be taken to the customer to be signed and only once this has been completed should the paperwork be handed in to the SSM to process. The SSM will process the agreement and undersign on behalf of the company. A copy of the fully signed agreement will then be sent to the customer.

A copy of the OFT Debt Guidance notes must also be included.

Exceptions There may exceptional circumstances where the business would consider an FSR extension beyond 12 months. The following criteria have been identified for such exceptions: • • • •

Customer with a minimum of 3 years tenure No goods purchased in last 9 months Lifetime lates average less than 2 per year Income & Expenditure checks must confirm that the FSR extension is justified on the basis of affordability.

Wherever possible, it is desirable to convert these customers to Direct Debit.

Exceptional circumstances FSR must be submitted to the Audit and Compliance team for review and approval prior to being processed.

Customer Returns & Company Terminations A Company Return can be down to a failure on the part of the team to aid the customer with keeping track of their payments; alternatively it can be due to a poor lending decision in the first instance or simply customer intent. By following the procedures in here we will be able to assist our customers in managing their accounts properly, which will reduce the risk of losing them. Also, the company will enjoy reduced customer loss with lower levels of terminations and Company Returns.

Part Return Another option available to customers who are behind with their payments but have demonstrated the intent to pay is a Part Return. Under this option, we pick up the items that the customer cannot afford.

This leaves the customer able to manage their reduced payments. One important consideration for the Partial Return is that the customer must be left with the ability to pay. This means that they may have to keep the TV provided by the company. We should never do a part return on a modified agreement that result in weekly terms being increased. This can happen if we try to collect goods which are older or of low value, particularly if the customer has had a FSR since the goods they are returning were purchased.

If they are not using a TV provided by us, then a meter will need to be fitted to the alternative TV.

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Any Partial return has a financial impact on the business and should only be carried out as a last resort, with prior approval from management. Remember it may be an alternative to take back a 51” TV for example but re-sell a 32”.

Terminations Customers have the right to terminate and end their agreement under Section 99 of the Consumer Credit Act 1974 at any time before their last instalment is due.

If they decide to terminate their agreement voluntarily and hand back the goods to the creditor, they should only have to pay up to half of the total amount payable under the agreement, The one half or 50% figure is stated on the agreement in the box headed "Termination: Your Rights". This is on the original HP Agreement.

They will then also owe any arrears (missed payments) plus damages if they have failed to take reasonable care of the goods (over and above normal wear and tear). The customer will have to sign the Collection by Consent Form to confirm they wish to terminate. We must ensure this happens to protect the company from a legal perspective. The customer is entitled to return the goods before 50% is paid but they will need to continue paying the debt until 50% has been paid.

Where a Hire Purchase agreement contains a separate subsidiary agreement for insurance products (e.g. for payment protection insurance and/or a guarantee or warranty), it is not necessary to pay off this agreement before terminating the Hire Purchase agreement.

The customer needs to request to terminate. The CAM should offer the customer alternative solutions other than terminating. If the customer still insists they should sign a Collection by Consent form to show they have agreed the collection of goods.

Terminating a customer’s contract has a significant impact on the business’s profitability. As a rule of thumb, every termination costs the business around £500 in bad debt charges and £125 in refurbishment costs. We also lose the cash income due on the remainder of the term.

It is important to establish the reasons why a customer wants to terminate and to make every effort to turn the customer around. We will terminate an arrears customer if they have not paid the full 50% if there is no other option and we are clearly not going to be able to get anymore payments from them.

On round terminations require RM approval unless they are a First Payment Default or have purchased within the last 16 weeks.

Termination Process The CAM must attempt to collect any outstanding payments before the termination is actioned and the goods are collected. The goods must be in good working order. Alternatively, if there are damages, the customer may be liable for repair costs. In instances where we are unable to save the account, the CAM should notify the customer during the final call that the account can only be fully terminated if all goods are returned.

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If the customer is not returning all of their purchases, it should be explained that they are entering into a Part-return. If the item is small enough to be secured safely in the CAM’s car without putting the CAM, vehicle or product, at risk then it can be taken there and then. If not then the customer details should be passed to distribution for pickup. In any instance where the CAM cannot collect the item there and then but a full return has been agreed the meter must be emptied, monies posted and the meter should be removed and returned to the warehouse on a Collection by Consent form and booked in by the warehouse.

The Ops drivers should complete a Collection by Consent form for the goods upon collection.

Company Returns A company return is repossession and is the last resort.

When should we consider collecting goods?

• When the meter has been broken into, or is missing, and it has not been reported to the police.

• When a customer refuses to make a commitment to resolve the problem.

• When the customer makes a commitment but consistently fails to meet that commitment.

• When a customer refuses to have a meter on and is unable to give any commitment on when they will be able to pay next.

• When the customer has never made a payment (First payment Default).

• When the customer has absconded without informing us of their address.

When should we not collect? Customers who have ON ROUND shortages but intact meters and cases where there is evidence of short-term / isolated circumstances that would have led to the shortage. Examples of this include: • • • • •

Hospitalisation.

Holidays.

Bereavement.

Lost Job. Change in Financial Circumstance.

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Procedure.

Before a decision can be made, a number of factors need to be considered. These will include: • • • •

Type of account (New Business, Secondary Sale, FSR, Part-return).

Age of contract.

Meter in situ (intact) indicator. % of terms over time calculator.

These factors should be considered in conjunction with the arrears information that the CAM’s input into their PMO. This system means that the following information must be accurate: • Tagging information.

• Note padded concerns.

• APS. This information will enable line management to make informed decisions as to the most appropriate course of action.

For a Company Return to be classified as ‘Full’, all goods purchased within the last 3 years which are covered by the agreement must be returned. If all goods are not returned, we could end up writing off a large balance when only a low value item has been returned. This is not beneficial to the company or our profit.

Meters must also be returned and if this is not possible , the reason for this should be recorded on the form.

If a customer is unable or unwilling to return all items purchased then the Company Return should be actioned as a ‘Part’. This means that only the goods returned will be removed from the balance (along with any associated “P” or “A” accounts) and the remaining products will still be charged. The customer should then pay the reduced weekly terms. If the customer refuses to pay, their debt should go through the debt cycle in the normal manner and be managed accordingly.

Collection by Consent (CbyC) In those instances where we are looking to collect goods from a customer through either a Customer Termination (where customer requests collection of goods), Company Return (where Dunraven Finance Ltd makes the decision to take the goods back) or Cancellation (where customer changes their mind within the first 30 days of the contract), we must always ensure that a Collection by Consent Form is completed. This is critical to prove that the customer has authorised collection of the goods. It is important to review customer accounts fully, prior to making any decisions; this will enable qualified decisions to be made based on the facts of the situation.

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Where More than a Third Has Been Paid: Section 87 of the Consumer Credit Act requires a default notice to be issued to a customer prior to taking goods back; the intention is to give them time to bring the account up to date. Once a default has been served no action can be taken on the account, for example the agreement cannot be terminated or the goods recovered until the 14 day period has expired. If the customer fails to bring the account up to date after the 2 weeks have expired then the goods can be taken back and a Collection by Consent Form completed.

Where the goods have reached ‘Protected Goods Status’ (i.e. 1/3 or more of the payments have been made) Dunraven Finance Ltd would have to go to court for an order for the goods to be returned unless the customer gives consent to the return.

In Scotland the goods cannot be taken back without the customer consent or a court order regardless of the amount paid.

If Dunraven Finance Ltd “takes back" goods without a court order or without customer consent where a third or more has been paid, the customer is entitled to a refund of all the monies they have paid under the agreement(s). If the customer has never paid anything, whilst there is no risk of having to pay back the money there is reputational risk to Dunraven Finance Ltd and because we have broken the law our credit license could be affected.

Where Less than a Third Has Been Paid: Where customers have not paid a third of the total amount payable under the agreement and want to keep the goods, where possible we should try to agree to a payment plan with the customer. We do not have to get a court order to take the goods back (except in Scotland) but we must serve a default notice and allow this to expire. If the customer fails to bring the account up to date after the 2 weeks have expired then the goods can be taken back and a Collection by Consent Form completed. The Collection by Consent form must be signed by the customer to validate that the customer has given consent and ensure we fulfil our legal requirements.

In Summary: • Never take back goods without the customer signature.

• Never take back goods in the 2 weeks after a default notice has been served unless the customer requests.

• Never take back goods whilst the customer is showing commitment to pay.

Cancellation The customer has a statutory right under the Consumer Credit Act 1974 to cancel within 14 days of signing the agreement or if the goods have not yet been delivered. However, as part of their contract with Buy As You View they will be allowed 30 days to withdraw from the agreement. The customer must sign the Collection Consent form to confirm that they wish to cancel the agreement.

This form must be signed by the customer upon collection of the goods from their home. (see overleaf...)

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Completing a Collection by Consent/Termination Ticket

This is only for cancellations

Recommended practice is to get customer to sign beside cash collected but also at the end of the comments.

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FDM: Arrears Decision Maker

Exceptional Circumstances In exceptional circumstances, where the customer simply refuses to sign or is unavailable e.g. in prison we may have to collect without a signature or default.

Other circumstances: • Death: In this instance, a copy of the customer’s death certificate or death notice should be attached to the Collection by Consent. Goods should only be collected if the customer’s next of kin has insisted that they want to return them.

• Absconder: Whoever is present when the goods are collected should write a statement in the Manager’s Report box stating their name, address, position and why they are collecting the goods. Those present should sign and date this at the end and print their names. This may be used in a legal dispute at a later date, so all information must be captured.

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Chapter Four

FOM

Field Operations Manager

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Field Roles & Responsibilities All field employees have a responsibility to lend wisely and make sound, commercial decisions, making the correct decisions at the front end will support improved collection practices which will ensure that each customer is as profitable as possible for us. Excellent customer service will also be a factor in this. Below are the main roles and responsibilities which impacts collections and arrears for each field role.

Field Operations Manager: Collections • To ensure customer & loanbook growth is achieved through focus on conversion, service & assessments whilst minimising risk and making sound, ethical lending decisions.

• To drive collections performance through adherence to the company collections policy and full utilisation of arrears management tools e.g. Mark IV console.

• To utilise the productivity tracker to drive performance and improve KPIs. • To improve productivity through effective scheduling & resourcing which will optimise collection opportunities.

• To review debt weekly and provide guidance & direction ensuring all team members are utilising the equipment & tools available to enhance performance.

• To ensure that all company Sales & Collections practices are completed in line with company policy and legislation.

• To ensure that the customer is treated fairly at all times.

• To ensure that the CAMs are regularly briefed and accountable on their P&L performance.

• To complete quality branch debriefs and ensure that CAMs are debriefed using the appropriate tools & resources available.

Field Operations Manager: Arrears • • • • • • • •

Full debt review 1 round Cat 1–39 weekly & identify solutions Identify solutions & feedback/notepad Weekly debrief all CAMs fully on Cat 1–4’s (midweek debrief ) Review notepadding & tagging report in console weekly Utilise Arrears customers with money in meter rpt is utilised Ensure all arrears meter calls are completed daily Ensure all meter alert meter calls are managed & attended Drive improved connection & viewing on meters

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FOM: Field Roles & Responsibilities/Courtesy Calls

Courtesy Calls New Business Courtesy Calls The courtesy call is the final consolidation of the front end sales process and is an indication of whether the sale is likely to be successful. A courtesy call will be completed for all customers whose agreements have been live for 2 weeks. The process is now an automated process on the Mark IV console which is able to review both Mark IV and Payment Control Unit to check whether: A Payment Control Unit or Money Manager MKIV Meter is communicating with us (e.g. we’ve had an update in the last 48 hours) There is a Payment Control Unit or Money Manager MKIV Meter on the system for every customer showing as live on the system.

The Oracle Arrears (excluding those included for this week) minus any cash in the meter is zero or in credit. Note: this week’s arrears will not be included if the payment date is Monday.

If any of the above are an issue then the system automatically raises a meter call for Thursday of that collection week. It is critical that all New Business meter calls raised are attended and any issue addressed. The system automatically notepads the customer’s account at the point of courtesy call and will either state ‘NB Courtesy Call—issues need validating, meter call raised’ or if there have been no issues then it will state ‘New Business Courtesy Call—no issues’.

Debt Resolution Automated ‘Critical Care’ Courtesy Calls Following a deferment, FSR, termination or return an account needs to be handled with care for a number of weeks. It is not enough to say that the account is back on round and leave it at that, we need to give it more focus and support to ensure it does not slip back into arrears at the first opportunity. They are higher risk as they have clearly had some issues which resulted in us having to reduce their terms. It would be negligent to leave these customers for up to another 8 weeks without a visit and therefore rather than increasing the number of visits we pay to them which would increase the cost of collection, we would still want to treat them with care and therefore these will have a courtesy check every 2 weeks for the first 16 weeks after the transaction. This will be an automated courtesy call check and will check exactly the same as the new business check: All critical care accounts should have had a Mark IV meter fitted at the point of resolution if they did not already have one. The Mark IV console will check the accounts fortnightly to ensure that: • The meter is showing on the system.

• The meter is connecting.

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• There are viewing patterns.

• The meter is up to date with terms due.

If any of the above are not in order a meter call will be raised stating ‘Critical Care account issue—visit required to resolve’. Completion of these calls is critical and will be monitored as these give you an early opportunity to resolve what could become more difficult issues.

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Scheduling A schedule is required to ensure that employees are in the workplace when the customers are at home to ensure efficient collection practices. This also allows better support from other departments as they will know when they can/ can’t raise meter calls for etc., and also when they need to be in the business to support the field.

SCHEDULE

MON

TUE

WED THURS

FRI

8–8

9–7

10–6

9–7

9–7

SAT

HRS 45

1 hour included per day Mon-Fri for lunch

Saturday working will be required where not at target. Scheduling should always be completed at least 7 days in advance so if a meeting or training session has been booked for an earlier than normal start this is communicated. Resourcing should be completed on a Thursday to establish who covers which rounds the following week. Where possible CAMs should be kept to their own rounds as this is an important aspect of building the CAM and customer relationship. If someone is on holiday then the TAM should cover. If there is unexpected absence then resources must be pooled and those with lower call counts should be utilised to cover the gaps. This should also be common practice in weeks where anyone has a low number of issued calls.

Customers’ viewing patterns are available on the Panasonic and the console.

Reviewing these will help us be more proactive in our call times.

It is important to note that travel to and from the office and to and from the first call is NOT work.

Therefore, first collection or arrival time at the office must be at 8am, 9am or 10am and last should be 6pm, 7pm or 8pm respectively.

Scheduling requires that all you have learned is put into practice and carried out in a way that allows you to execute all actions in an effective and efficient manner.

Remember, it is your responsibility to collect all monies due in the most efficient, respectful and effective manner.

The key to success is to effectively utilise all the tools available to you to meet your collections goals.

To be effective you must plan each day. The key is repetition, persistence and routine.

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FOM Weekly Planner • • • • • • • • • • •

01/07/2013

03/07/2013

05/07/2013

Debrief Daily Targets Review Complaints Account enquiry followup Review meter call completion Review assessment completion SS underwriting Mark IV dashboard check Assessments Vehicle checks Accompaniment

• Daily Targets • Review Complaints • Account enquiry followup • Review meter call completion • Review assessment completion • SS underwriting • Mark IV dashboard check • Assessments • Accompaniment

• Daily Targets • Review Complaints • Account enquiry followup • Review meter call completion • Review assessment completion • SS underwriting • Mark IV dashboard check • Assessments • Ensure all NB courtesy meter calls have been completed • Accompaniment

02/07/2013

04/07/2013

• Daily Targets • Review Complaints • Account enquiry followup • Review meter call completion • Review assessment completion • SS underwriting • Mark IV dashboard check • Assessments • Review Cat 1-39 full for 1x round

• Daily Targets • Review Complaints • Account enquiry followup • Review meter call completion • Review assessment completion • SS underwriting • Mark IV dashboard check • Assessments • Resource planning

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FOM: Scheduling

Field Cash Audits Field Cash Audits must be completed once per month on each employee (excluding FOMs & RMs). They must be unannounced and must be completed by the line manager tracking the vehicle using VMS. The details of the person tracking the vehicle must be recorded on the Field Cash Audit Form.

Situations where the VMS tracker is not used to complete Field Cash Audits: • Where there is an issue with a tracker not working or the employee has a hire vehicle in excess of 1 month, the Field Cash Audit should be completed in the car park and recorded as such in the VMS box; • If a CAM is observed in the field prior to being tracked using VMS, the Field Cash Audit should be completed and this must be recorded in the VMS box.

Note: These circumstances are considered to be exceptional and will be subject to audit verification checks. Vehicle Trackers that are not working must be reported immediately to Fleet and a repair arranged at the earliest opportunity.

Completing the Field Cash Audit • The details of all bank slips for the week must be recorded and verified that are all are present and support the collections processed through the Panasonic Mobile Office (PMO).

• The contents of the safe and any loose change held must be counted in front of the employee and should always correspond with the amount recorded in the ‘Discrepancy’ field on the PMO; any disparity must be investigated and the reason established.

• A selection of £20 bags must be checked individually to ensure they contain the correct amount of coins; the amount of bags checked must be recorded on the Field Cash Audit form and any discrepancies noted.

• If the employee does not have the correct bank book for the round they are collecting, the bank book reference number they are using should be documented and the reason established. All fields in the ‘General’ section of the Field Cash Audit Form must be completed in full and any issues identified recorded and addressed with the employee.

• The completed Field Cash Audit Form must be signed by both parties.

The top copy of the form should be removed by the line manager and passed to the Regional Office Administration team for filing. The bottom copy of the form should be issued to the employee.

Note: If any cash discrepancies are identified (that cannot reasonably be explained) during the Field Cash Audit, the Regional Manager and Field Auditor must be notified immediately.

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VMS: Vehicle Management System All company vehicles are fitted with a tracking system (VMS) that pin points the exact location of a vehicle. It can be used to conduct unannounced Field Cash Audits on employees in the field. This allows line management the facility to check the â&#x20AC;&#x2DC;liveâ&#x20AC;&#x2122; situation in the field rather than pre-arranged/expected/ anticipated meetings. Random Field Cash Audits using VMS must be completed by each FOM on a selection of employees on a weekly basis.

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FOM: Scheduling/Debrief

Debrief What Is a Debrief?

Debrief is the singular, most essential business management tool that managers can use. The Debrief, if conducted correctly, is a vital tool for ensuring effective leadership and achieving successful results, from Regional Manager (RM) down to Customer Account Manager (CAM). It provides an opportunity for the manager to demonstrate their coaching and leadership skills by: • Effectively reviewing productivity, performance and driving focus of individuals/teams in a timely manner.

• Quickly identifying potential problems/issues allowing effective and timely recourse.

• Encouraging team spirit whilst improving/maintaining individual and team motivation.

• Enabling early identification of individuals strengths and weaknesses to include training, development and support requirements.

Focusing on positive leadership rather than reactive management.

All of the above enables us as a business to maximise on team and individual performance potential and provides a framework for a line manager to conduct a structured review around each individual’s performance. The manager can establish what work has been completed, prioritise outstanding tasks and agree a plan to effectively complete outstanding actions.

The four main areas a CAM is targeted on are: 1.

2.

3.

4.

On Round Collections Arrears Clearance New Business Recommend A Friend Secondary Sales

Debrief: When and Where Field Operations Managers (FOM) Debrief sessions should be broken down into 3 different types: • The Monday Debrief in Regional Office or Meeting Place Offsite.

• The Midweek Debrief (Wednesday/Thursday) in Regional Office.

• The Daily Debrief by Telephone.

There are elements that need to be covered in each and others that are Debrief specific.

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1. The Monday Debrief This would consist of the FOM holding a Team Debrief, closing down the previous week’s performance and setting up the targets and goals for the week ahead. For this debrief the following would be required by the FOM and the CAM:

The Field Operations Manager • • • • • •

A Collection Report for each CAM for the forthcoming week A Meter Health Report for the forthcoming week Sales Lead Report Weekly Vehicle Check Form Latest Communications Pack OnRound completion report (Mark IV console)

The Customer Account Manager • • • • • • •

Banking Reconciliation Summary complete Bankslips with Post Office receipt attached Cheques Completed Receipt/Bank Books Mileage/Working Schedule Form Confidential Waste Blue Bag Sales/Assessment paperwork

The Team Debrief should take 30–45 minutes.

The areas that should be covered in the Monday Debrief are:

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FOM: Debrief

ITEMS Key Tips...

• Closing the previous week’s performance numbers individually and collectively as a branch reviewing each CAMs performance.

• Setting up each CAMs individual targets for the forthcoming week, this may be for their own round and/or supporting others.

• Issue the RED No Connectivity/No Viewing calls from the Meter Health Report to make sure the CAM resolves the issues on each one and any other Meter Calls from the collection report.

• Review any outstanding leads that are on the Sales Lead report.

• Review any Account Enquiries that are also on the Sales Lead Report for resolution before they escalate into complaints.

• Collect all Banking Reconciliation Forms from each CAM with all Post Office receipts attached for auditing and reviewing after they have gone, unless there is a major issue that should be resolved before the CAM leaves.

• Collect all Cheques to be handed in to Regional Office for banking.

• Collect any full/completed Receipt books and Bank books and re-issue new ones.

• Collect Mileage/Working Schedule forms off each CAM to confirm their previous week’s mileage and their forthcoming weeks working schedule.

• Collect any Sales paperwork, New Business Assessments or any Secondary Sales paperwork to hand in to Regional Office.

• Any confidential waste papers need to be signed in/over and put into the Confidential Waste Bins in the office at the earliest opportunity.

• Discuss the Comms Pack and answer any questions.

After completing the above the FOM then needs to make sure the CAM has the “Toolkit” to complete his role and help the have a successful week. The “Toolkit” consists of: (see overleaf...)

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TOOLKIT ITEMS Key Tips...

• Their new weekly collection report.

• Catalogues or the latest fliers to distribute to customers.

• Meters (If they do not have enough they need to visit the Warehouse and replenish their stock on leaving if the debrief is at Regional Office).

• Batteries (If they do not have enough they need to hand in any batteries for disposal and collect new batteries from the Warehouse on leaving if the debrief is at Regional Office).

• Money bags (both £20 and £500).

• Bank book.

• Receipt books.

• Panic Alarm.

• Nut Spinner and Screwdriver as they may need to change/upgrade meters. week’s mileage and their forthcoming weeks working schedule.

• Panasonic ToughBook fully charged and loaded.

The final thing to complete is the vehicle check before they leave.

2. The Midweek Debrief This debrief should be completed on an individual basis and best practice would be for it to be conducted in front of a PC/Laptop with Oracle, MKIV Console and VMS capability, and would need to be planned so there is no time wasted with people waiting around, or causing a distraction this allows each individual CAM to have the FOMs undivided attention and quality time so the FOM would need to integrate this with the CAMs working schedule. This is the time where the FOM would review current week’s performance and manage accordingly expectations for the remainder of the week with supporting, accompanied visits if required.

For this debrief the FOM and CAM would need:

The Field Operations Manager • • • • • • •

The current days CAM Collection Report Sales Lead Report Meter Health Report This weeks Over/Underbanking Report Oracle Access MKIV Console Access VMS Access

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The Customer Account Manager • • • •

Bankslips Full Receipt Books Sales/Assessment paperwork Termination Tickets/ Collection By Consent Forms

The FOM would debrief by reviewing the following:

ITEMS Key Tips...

1. Call Analysis.

This is to confirm the actual number of calls completed in each category, the number of shortages and the number left outstanding.

2. Shortages.

Review each short in the section checking the reason for the shortage and the arrangement to pay.

• Has a MKIV meter been fitted? If not why not? If not has the meter been adjusted to encourage the payment that week?

• Check the TAG and notepad entry are correct and reflects the reason for the short.

• If a shortage is still outstanding the day after the arrangement ask the why? It may be that the CAM has not called or the customer did not keep the appointment, so a telephone call to the customer is good practice.

3. Uncollected.

Review each uncollected account to check they have a MKIV meter. If they have: • Review the console to establish if the meter is connecting.

• Are there any alerts?

• If there is money in the meter check the customers viewing pattern, what is the best time to call?

• Telephone the customer to make an arrangement for the CAM to call, as this may help identify if the customer has a problem paying that week.

• If a customer has absconded it is best practice to work the Proposal/Assessment form (Refer to Trace Section).

4. Arrears.

The arrears are listed in Category order from Cat 1 to Cat 39. The CAM is responsible for all arrears on his customer base/loanbook, with particular focus on Cat 1-4 as the Field Debt Manager (FDM) will support on Cat 5 and above. The CAM report and PDFs from the Tuesday review should also be utilised and the same PDFs can be used and updated weekly until the next full debt review for the CAM is complete. These should be reviewed to check if there are any payment plans in place (APS) that can either help the customer bring the account up to date over a number of weeks, potential resolutions and those where a return seems the only likely option. Review the MK IV console to establish: (continued overleaf...)

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ITEMS (...continued from previous page) Key Tips...

• Are there any customers on the arrears list that have cash in the meter?

Point & shoot the CAM to these customers for quick, easier resolutions.

• Check the TAG and notepad status/ levels for the round.

• Possible issues when they are issued On Round the following week for collection (Meter Health Report) & direct the CAM to these customers to deal with them proactively.

5. Meter Calls.

A meter call is where the customer has rung into Customer Service to request a CAM to call, or the MKIV Console has automatically created a call for a CAM to visit.

• Is the meter full and needs to be emptied? If this is not completed it could leave the customer with no viewing which could lead to the customer breaking into or removing the meter.

• Is the customer is going away and wants the meter emptied not to leave cash in the meter while away?

• Is there is a fault with the meter and if this is not rectified could affect the next collection?

• Have they changed address and we need to visit to confirm everything is ok?

The MKIV Console meter calls are created if the customer pays by Direct Debit (DD) and the DD bounces for a second time, and if the customer is new and the meter is not communicating to the console it will require a CAM to visit to either offset an arrears issue or to repair a faulty meter. This can be viewed via the Automated New Business Courtesy Call report. It is important the meter call is completed on the requested date to avoid any issues or customer complaints. If a meter call is showing no payment the day after the call was booked it should be note padded as it could be that the customer was out and the call could not be completed or that the call was completed and the CAM is “rolling money” This is where a CAM has completed a meter call and not posted the money against the customer’s account, it is good practice to telephone a customer who has been missed on the day of the booked meter call to confirm the reason why.

Any meter call completed should be ticked on the report and the report handed in to the office administrator for deleting, these will soon Auto delete only if the required outcome is achieved, if this is not done it could lead to an elongated collection report which takes longer to debrief.

6. Banking Summary.

This shows the amount collected by the CAM against the amount banked and the difference shows as under banked. If the amount is over-banked this will show as a minus. The confirmed/unconfirmed bank-slips are also listed and should add up to the amount posted.

Any discrepancies should be looked into immediately. Any doubts can be checked by completing a Field Cash Audit with the CAM. 7. Other Collections.

This shows all payments put through the CAMs Toughbook and may identify if there are any mis-postings as it shows the CAM number and Round number that the customer belongs to.

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ITEMS (...continued from previous page) Key Tips...

If there is a CAM number different to the actual CAM whose report it is it will probably mean there has been a payment posted against the wrong customer so it will need to be rectified by checking the CAMs receipt book to confirm the correct customer and a cash transfer completed by the FOM and handed in to Regional Office. (continued opposite...)

8. Delivery Notes.

This shows all sales that have been created by the CAM via the Toughbook and can be checked to support the number of sales the CAM has informed the FOM he has completed that week, both Secondary and New Business, it also shows if any sales have been duplicated and they need to be resolved by cancelling one down, if there are two sales for the same customer the check needs to confirm which is the correct one and the incorrect one closed.

9. Sales Lead Summary.

After completing the debrief of the Collection Report the FOM will then move onto the Sales Lead Summary, which shows any outstanding Account Enquiries, these are when a customer has rung in querying something on their account that cannot be dealt with by Customer Service and needs a visit or telephone call to resolve the issue, it also shows any sales leads outstanding which should then be allocated to the CAM for completion or to find out why they have not been sold, there could be a stock issue where the stock is not currently available, the customer only requires an item that may be unaffordable at the present moment so will need more collections before the sale can be completed. These leads then need to be closed down with the relevant outcome by the FOM. 10. Support.

This also allows the CAM to replenish anything for their â&#x20AC;&#x153;toolkitâ&#x20AC;? and bring any issues to the FOMs attention for these to be dealt with. The timeframe for this debrief should be between 30 to 90 minutes, depending on the CAMs performance for the current week and whether it is their full debt review and be closed with agreed goals, expectations and the knowledge that the CAM has enough calls to have a productive day and positive end to the week.

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3. The Daily Debrief This should take 10 to 15 minutes it should reflect the Midweek Debrief but not as much into detail on the remaining days of the week and it allows the FOM to review the previous day’s performance and speak with the CAM by telephone to confirm, or possibly realign the day’s goals and expectations and answer any queries raised. For this the FOM would need: • Current days CAM Collection Report • Access to PC/Laptop for Oracle/MKIV Console/VMS • Sales Summary Report Questions for the CAM during the daily debrief would be:

ITEMS Key Tips...

• Compare Targets v Actual, and if they are being missed ask why? How are they going to make the shortfall?

• How many calls are uncollected? The answer should agree with what is on the collection report.

• Are there any avoiding you? If YES have you telephoned them?

• Are there any Absconders? If YES, have you requested the Proposal/Assessment form to work references? If NO, why not? If YES, what were the responses?

• Are there any shortages arranged for today?

• Are there any arrears arranged for today?

• How are you going to achieve your sales targets, both Secondary and New Business?

• Have you any New Business assessments outstanding?

• Are there any meter calls outstanding from yesterday? If YES ask why?

• Meter Health update.

This should be a quick review and alignment of the day’s expectations with clear, precise targets that give the CAM a clear indication of what is expected of them on the day.

It is also best practice to have updates each day, at a time agreed, around 3pm is usually the best, so that the FOM has an understanding of how each CAM is performing in line with their individual goals, that ultimately has an impact on the branch’s successful or unsuccessful daily performance, this also allows the FOM to realign goals and offer support where required.

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FOM: Debrief

AREA TO BE COVERED

117

MONDAY

MIDWEEK

DAILY (PHONE)

Set/review targets

✓

✓

✓

Issue No connect/no view calls

✓

-

✓

Allocate NB/SS leads

✓

✓

-

Issue account enquiries

✓

✓

✓

Collect in banking reconciliation

✓

-

-

Collect in cheques

✓

-

-

Collect in completed receipt/ bank books & reissue new ones

✓

-

-

Collect in mileage forms/ schedules

✓

-

-

Collect in sales paperwork

✓

✓

✓

Collect in confidential waste

✓

-

-

Review Comms pack

✓

-

-

Make sure toolkits fully complete

✓

✓

-

Call analysis

-

✓

✓

Shortages

-

✓

✓

Uncollected

-

✓

✓

Arrears

-

✓

✓

Debt review

-

✓

-

Meter calls

-

✓

✓

Banking summary

-

✓

-

Other collections

-

✓

-

Delivery notes

-

✓

-

Support

-

✓

-

Assessments

-

-

✓

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Weekly Debt Review To support and improve current arrears management performance each FOM should review one CAM’s full debt cycle 1–39 on a weekly basis so over the course of 5 weeks maximum all arrears should have a full review over the course of 3–5 weeks dependant on branch size (number of rounds).

The file, to be updated and reviewed on a weekly basis will contain the following: PDF’s of all customers in all categories of the arrears cycle for that round.

A new summary sheet, to be updated every week by the CAM assigned to each round, showing, customer count, total TLC %, number of customers in each category (1 to 39) total number of customers in categories 1 to 10 and proposed solutions.

This cover sheet should then be highlighted weekly on the proposed solutions so ‘Green’ when they are resolved.

The folders and cover sheet should be available for audit or line management review at any time.

The weekly process is as follows: ACTION REQUIRED

WHEN

Print CAT 1 to 39 PDF’s for one CAM

Mon/Tues

Arrears reviewed & weekly summary sheet updated

Tuesday

PDF updated with planned activity

Tuesday

Planned activity reviewed with CAM

Tuesday

Activity de-briefed

Daily

Accounts updated and note padded

Daily

Update line manager with proposed actions

Daily

Notify FDM of required activity Weekly summary sheet copied and filed for safe keeping

Wednesday Weekly

The emphasis is very much on the CAM taking ownership for the arrears in categories 1 to 39, the actions and follow up to resolve along with accurate and detailed note padding to clearly demonstrate what action/outcome is expected for each account in these arrears categories. The line manager’s role is to review and agree the CAM’s planned activity and ensure the arrears for each CAM are being managed in accordance with the following minimum standards:

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FOM: Weekly Debt Review

• All accounts in categories 1 to 39 will be reviewed on a rolling 3–5 week basis dependant on how many rounds the FOM has.

• All accounts in categories 1 to 39 will be attempted to be contacted a minimum of once every week (this includes telephone activity).

• All accounts in categories 1 to 39 will have a minimum of 1 note pad entry entered every week.

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Tracing We classify a customer as skipped when they abscond, fall into arrears and have failed to respond to any contact. This happens for two reasons: firstly, it may be unintentional, for example, a customer moves house and forgets to tell us. The second reason is intentional, for example the customer moves and intends to avoid paying for or returning the products.

Unintentional absconding is usually driven by the customer’s circumstances e.g. moving away from difficult relationships. Dunraven Finance Ltd therefore becomes indirectly affected by the customer’s circumstances, as the customer may want to continue to pay but fear that we may divulge their whereabouts to other parties (ex-partner etc). Therefore, difficult circumstances may result in customers’ reluctance to share information with us. Acting professionally at all times will build trust between Dunraven Finance Ltd and the customer and thus prevent such reluctance.

There are 2 ways to establish that a customer no longer resides at a current address: 1. The customer notifies us (CAM, Customer Services etc).

2. We try to contact the customer e.g. when making a collection, Telesales etc.

If the customer has notified us of their change of address, we must ensure that their account is updated accordingly. If the change of address means that the customer now resides within a different branch within the region then the administration team can make a manual round change. A Meter Call will be raised for the new CAM to collect and confirm that the customer does reside at the new address, if not; it will be reverted back to the original round. This should be actioned promptly to ensure a speedy resolution.

In circumstances where the customer has moved to another region, the line manager needs to notify the administration team who will then raise a ‘Change of Address’. This screen then sends notification to the RM of the region that the customer is moving to and should be accepted in within 24 hours.

It is recommended that the FOM/RM of the branch transferring the customer contacts the FOM/RM of the branch receiving the customer to ensure that the customer is accepted promptly.

If the customer has moved and we are unsure of their forwarding address, locating the customer is your first goal. The ultimate goal is the payment of the account and/or recovery of our products.

To achieve this we need robust guidelines to: • • • • •

Analyse accounts.

Obtain information.

Keep accurate and detailed records.

Follow up and be persistent.

Non-disclosure of customers’ personal and account details.

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FOM: Tracing

There are a number of steps which need to be taken to ‘trace’ the customer: 1. The Original Proposal Form should either be printed from the DIP facility or requested via the Regional Office along with all of the customer account paperwork. It is important to gather as much knowledge as possible.

2. Establish whether the customer has any local family, friends or has been recommended by an established customer that could help with our enquiries. All of this information is available from the proposal form completed at the original point of sale.

3. Tagging the account as ABSCONDER via the PMO Tough Book.

Remember, it is vital that the customer’s details are kept confidential at all times.

At no point must a customer’s details be discussed with a third party unless written authority has been received from the customer. This is a legal requirement under the Data Protection Act. All follow-up on absconders and tracing activity should be note padded on the customer account and documented on the Trace Form.

From the original Proposal Form it can be established whether the customer joined us as a result of being recommended by a friend or family member. These individuals could then be the first point of contact. e.g. You can state that you are trying to locate their friend/relative ‘I am trying to get hold of Miss X’ and ask them for contact details; ‘do you have any contact details or forwarding address for her?’ We may also wish to ask questions regarding the customer’s location to their neighbours. Customers who live in the same road / street may know each other. If asked who you represent, the answer should be that you are ‘A service provider’.

Dunraven Finance Ltd representatives must act professionally and confidentiality at all times. You should never discuss any personal details regarding the customer e.g. balance, arrears and goods unpaid for. Dunraven Finance Ltd will take action against any colleague who does not comply with the laws which regulate our business. All visits should all be note-padded briefly to demonstrate follow-up e.g. ‘Called to Miss X: unaware of new address’.

Key points when seeking customer information: • Do not notify the individual of the company you represent.

• Do not state that the customer owes you money.

• Do not give out information or ask for messages to be passed on. The OFT warns that using neighbours to pass on messages is an unacceptable practice that contravenes the OFT’s guidance. It has the potential to lead to disclosure of private financial information and can cause distress and embarrassment.

• Never contact a third party more than once unless you are asked to do so by that person. You may, however, contact a third person again when information previously given to you has turned out to be incorrect or incomplete and you have reason to believe that the person now has the correct or complete information. For example, it would be considered reasonable if the third person were the customer’s mother. If, however, it becomes apparent that the third person has intentionally given you false

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information or does not want to help you locate a customer, all contact must stop.

• You are permitted to say only that you are confirming or correcting location information concerning the customer, no more and no less.

• The account should be tagged as Absconder and should also be notepadded with any additional information, including that provided in the Original Proposal form. This is to ensure that consistent and accurate information is recorded.

• Consideration should also be given to employment status and, where necessary, a letter sent addressed to our customer marked highly Private and Confidential.

Remember all tracing activities must be conducted within the confines of the law and according to the Customer Charter.

Notepad all attempts to contact the customer and the outcomes of the skip tracing. The customer’s account should have all necessary information for any colleague to look at the account and establish exactly what stage of tracing and locating the branch.

If you believe that you have located the customer, visit their home at a time you think they will be there (from previous knowledge of the customer). Try not to let them know that you have located them until you visit the new address. Be persistent but professional; remember, your aim is to resolve the situation by either getting payments back on track or recovering the goods. If the customer is not at the address, you should continue with the tracing process. If they are at the address, you should attempt to come to an amicable resolution e.g. payment (APS) or recovery.

When all telephone numbers and possible connections have been exhausted and you have been unable to trace the customer, a decision has to be made on the need to report the matter as a potential theft.

If you are still unable to make contact with the customer or ascertain their whereabouts after working the Proposal Form across Categories 1–4 and contacting all references, an automated Trace process will take place at Cat 5 where all accounts tagged as ABS will be forwarded to UK Search and will be run through the Trace system. New addresses will be uploaded via an Arrears Meter call (Trace) to the FDM and completion rates will be monitored.

If the customer has still not been located by Cat 10 the automated process will take place again as some customers who have moved take longer to settle and may not show up on the first trace. The automated process will take place for a final time at Cat 18.

The FDM will notify the relevant FOM/RM of any outcome or pertinent information in relation to our customer and success rates.

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FOM: Tracing/Cat 39 Write-offs

Category 39 Write-offs Any accounts which have gone through the arrears cycle will be written off at the end of week 39 unless they have paid more than 10% of their terms within the last 12 weeks. The full balance will be written off resulting in a bad debt charge for the round, branch, division and region.

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Customer Refunds Cheques are no longer available as a method to process refunds. Refunds will only be arranged using BACs payment. Bank details must be provided when requesting a refund.

Where customers are to be refunded payments, the refund form available in the standard forms section of the Intranet needs to be completed and submitted to Finance. This form must include the following information or it will not be processed, and will be returned to the person who has made the request for amendment and re-submission. This also applies to delivery charge refunds.

• • • • •

Customer details.

Reason for the refund.

Customers’ bank sort code and account number.

Value of the refund.

Signature of an authorised signatory.

A minimum refund value of £10 is set if a customer has other live agreements, if they have no live agreements and have overpaid no minimum value is set and a refund will be arranged.

Regional Managers can authorise account refunds up to a value of £500, Divisional director/operational board approval is required above this amount.

The authorised signatories for delivery charge refunds include, Regional Managers and Operations Managers.

Direct Debit Refunds Direct Debit refunds are covered under the Direct Debit Guarantee, as such Customer Service Team Leaders need to check and authorise any refunds in this area. An e-mail needs to be sent to CSTeamLeaders@BAYV.co.uk giving full details of the reasons why the refund is necessary. They will review and approve and send a request to Finance once they have satisfied criteria.

Card Payment Refunds Card payments can be refunded in full in the case of duplicates, or in part if the incorrect value is taken. Instructions on how to do these are included in the card payment policy and procedure. Card Payment refunds can only be processed by Customer Service Team Leaders and Sales Support Managers only.

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FOM: Customer Refunds

Failed Direct Debit Charge/Bounce Cheque Refunds If charges relating to failed Direct Debit collections/bounce cheques need to refunded, this is processed by applying a reversal of the charge to the customerâ&#x20AC;&#x2122;s account. No money will be passed to customers.

For Bounced Cheques an e-mail is required from a Regional Manager and should be sent to Cashbook@BAYV.co.uk stating a valid reason why the charge should be reversed.

For failed direct debit charges an e-mail should be sent to this address, CSTeamLeaders@BAYV.co.uk stating the reason the charges should be reversed.

They will review the request and forward to Finance subject to criteria.

Refund Timescales A weekly refund payment run will be processed for payment to credit customer bank accounts on a Friday.

All requests must reach cashbook@bayv.co.uk by 12pm on a Wednesday to be included Any requests sent to Cashbook after Midday on Wednesday will not be actioned until the following week.

This Payment run will also include Compensation payments, so they will also need to be sent to Customer services for processing and subsequently brought to Cashbook before Midday on Wednesday.

Any requests submitted relating to ombudsmanâ&#x20AC;&#x2122;s claim will be considered on a case by case basis.

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Chapter Five

RM

Regional Manager

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Field Roles & Responsibilities All field employees have a responsibility to lend wisely and make sound, commercial decisions, making the correct decisions at the front end will support improved collection practices which will ensure that each customer is as profitable as possible for us. Excellent customer service will also be a factor in this. Below are the main roles and responsibilities which impacts collections and arrears for each field role.

Regional Manager: Collections • To ensure customer growth and loanbook growth is achieved through the delivery of NB and SS targets with focus on NB conversion, prompt completion of assessments and minimising risk by making sound, intelligent, commercial and ethical lending decisions.

• To continually improve productivity rates for all colleagues through effective scheduling and optimisation and ensuring demand is allocated and in line with available and appropriate resource which will increase collection opportunities.

• To drive collections performance through adherence to the company collections policy and full utilisation of all arrears management tools eg.

Mark IV console.

• To ensure the regions debt is reviewed weekly and provide guidance & direction all team members on the correct utilisation of equipment & tools available to enhance performance.

• To ensure that the customer is treated fairly at all times.

• Sales & Collections practices are completed in line with company policy and legislation.

• To complete quality regional/branch debriefs and ensure FOMs also complete quality CAM debriefs using the appropriate tools & resources available.

• To ensure customer complaints and account enquiries are resolved within guidelines.

Regional Manager: Arrears • • • •

Check Mark IV dashboard for debt / collection opportunities Review & signoff all terminations to ensure comply with policy Review Cat 8 & identify solutions & feedback/notepad Ensure actions identified from Cat 8 review previous week have been actioned • Lock meters responsibly • Debrief FDMs on debt daily

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RM: Field Roles & Responsibilities/How PCP Impacts Our Profit and Loss

How PCP Impacts Our Profit and Loss Every business must make a return on its investment; therefore good cash collection is critical. A sale is not a sale until we have collected all the payments required to complete it. When Dunraven Finance Limited enters into a contract with a customer, the desired outcome is that the customer takes ownership of the goods.

If you are not collecting cash from a customer then you are not recouping the cost of the goods sold to them and the cost of the collections activities associated with that customer. A business manages its finances in much the same way as most people manage their home finances: cash comes in, all the bills / outgoings are paid and whatever is left is put aside. You would call the money coming in ‘wages’. In contrast, the business would call this ‘revenue’.

Similarly, bills and outgoings are called ‘costs’ and money put aside each month in ‘savings’ is classed as business ‘profit’.

In simple terms: Revenue – Costs = Profit Revenue: The cash we collect from our customers, when totalled up, forms the company’s total revenue.

Costs: There are many variable costs. However the key areas from a collections point of view are: • • • •

Value of goods.

Total arrears.

Cost of colleagues.

Cost of hiring and running vehicles.

Implications of Not Collecting Enough Cash Every pound that we fail to collect is a pound that we lose from our gross revenue line. If we lose too much revenue, we risk making no profit.

When a CAM loses control of their collections, more time is needed to put into regaining control of the arrears and getting customers back on track. The time spent achieving this lessens the time that can be spent making collections and increasing our customer base. The more customers that are helped to ownership per Round, the more cost-effective the Round becomes for the company. It is cost effective because we are seeing a return on the investment that we have made in the product, the colleague, and their vehicle/running costs. This is important because the biggest impact on the company’s bottom line profit is the arrears.

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RM Weekly Planner 01/07/2013 • • • • • • •

Debrief Daily Targets Non Des Assessment Tracker Complaints 72hrs + Leads 72hrs+ Vehicle Inspections

03/07/2013 • • • • • • • • •

Debrief Daily Targets Non Des Assessment Tracker Complaints 72hrs + Leads 72hrs+ Cat 8 review Cat 9 follow-up Weekly team meeting OM/ROM/RM & FOMs

02/07/2013 • • • • • • •

Debrief Daily Targets Non Des Assessment Tracker Complaints 72hrs + Leads 72hrs+ Mark IV dashboard check

05/07/2013 • • • • • • • •

Debrief Daily Targets Non Des Assessment Tracker Complaints 72hrs + Leads 72hrs+ Early write-off Mark IV dashboard check

04/07/2013 • • • • • • • • •

Debrief Daily Targets Non Des Assessment Tracker Complaints 72hrs + Leads 72hrs+ Resource planning Field accompaniment Review declines by exception

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RM: RM Weekly Planner/RM Weekly Debt Review

RM Weekly Debt Review To support and improve current arrears management performance each RM should review all category 8 customers on a weekly basis whilst following up on any that that they required actions and outcomes from the previous week.

The file, to be updated and reviewed on a weekly basis will contain the following: • PDF’s of all customers in category 8 of the arrears cycle.

• A new summary sheet, to be updated every week by CAM showing total number of customers in category 8 and proposed solutions.

• This cover sheet should then be highlighted weekly on the proposed solutions so ‘Green’ when they are resolved.

The folders and cover sheet should be available for audit or line management review at any time.

RM Category 8 Debt Review Form

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Early Write-offs Paperwork for all early write offs should be filed for audit purposes and kept for 1 year. The file should consist of copy of: 1. PDF (unless Category 0 and an account print-off will suffice) 2. Early Write Off Authorisation Form 3. Relevant documentation applicable to each scenario as detailed below.

There are various reasons why accounts may require to be written off early and as such there are different Policies and Procedures which must be adhered to dependant on the individual circumstances.

1. Deceased customers • If the customer dies then their account should be written off under the terms and conditions of their contract.

• A copy of the death certificate is required.

• If a copy of the death certificate cannot be obtained then a death notice from the paper or internet will suffice.

• This should be attached to the Authorisation Form.

If we are unable to obtain a death certificate or notice then an early write-off can be considered under the ‘Other’ category.

2. Goods Stolen Without EPS • If the customer’s goods are stolen and they do not have EPS the customer is responsible for paying back the remaining value of the goods.

• This will be the cost of the original goods only.

• Once this has been paid the remaining balance may be written off providing a log of the Crime Reference number, Police Officer, Badge Number & Police Station is obtained.

• These details must be recorded on the Authorisation form.

3. Accounts With Low Balances • Applies where an account with a capital balance of less than £100 reaches week 9 of the arrears process.

• Only if there is no sign of the account being resolved.

• The account must show regular evidence of attempts to collect and contact through notepad entries (1 per week minimum for last 4 weeks) and regular contact throughout the arrears cycle.

• If the write-off is due to unable to contact or refusing to pay, the RM must review the account and attempt to contact the customer and notepad the account with date/time and outcome of this attempt.

Note: If the customer is still making payments it is viable to continue collecting this even if the balance is below £100 as we would be collecting within the vicinity anyway. In such circumstances the account must not be written off.

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RM: Category 39 Write-offs

4. Negative Traces • In situations where we obtain 2 negative traces for absconders (ABS), consideration may be given to write these accounts off early providing the following criteria apply: • The Prop Forms for ABS customers should be worked and the notepad should support this.

• Both copies of the negative trace outcome must be attached to the Early Write Off Authorisation Form.

• In those instances where an address is returned then the VMS report must be printed & attached to support visits to the quoted address have taken place—there must be a minimum of 3 visit attempts at varying times of day/week.

• Those where an address has been returned must be validated & notepadded by the FDM/FOM to say they have visited to check also.

5. In Prison If we are notified or become aware that a customer has been sent to prison consideration may be given to write off this account early.

• The newspaper clippings or court letter should be attached for verification where possible.

6.Other Reasons There are a number of reasons where consideration may be given to making a commercial decision to write-off an account outside of the above criteria. All facts need to be considered to ensure the correct decision for both the customer, and the business, is made. Below is a list of potential issues which may qualify as ‘Other’ but this is not exhaustive: • Terminations processed incorrectly as part when should have been full.

• Terminations which have been left with an incorrect balance after processing.

• Incorrect settlements.

• Customer refusing to pay because we have badly managed the account or we believe we have made a mistake with their account.

• Severe customer complaints e.g. Ombudsman.

• Low balance (less than Cat 9 & less than £100) where not viable to go back e.g. Out of area.

• Where we believe an employee may be at risk if they return.

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Appendices

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Appendix 1: Category 2 Meter Locking Letter Customer Address Date Agreement(s): XXXX XXXX Customer ID: Dear XXXXXX IMPORTANTâ&#x20AC;&#x201D;PLEASE READ THIS INFORMATION CAREFULLY Overdue Payment: ÂŁxxx Your account is in arrears and despite numerous attempts we have been unable to contact you to resolve the situation.

It is a condition of your agreement that payments are kept up to date.

As security for the payment of the amount you owe us under your agreement, we connected a meter to the power supply on your television. We can control this meter remotely and may switch off this meter if you fail to pay the amount due to us by the due date for payment. Please note the television to which the meter is connected will not work whilst the meter is switched off.

Please contact us on: 0845 121 5690 to discuss your account and arrange payment. If you are unable to pay the full amount due we can arrange a suitable repayment plan.

If you do not contact us within 7 days of the date on this letter we may restrict your meter.

If you are experiencing financial difficulties and are struggling to meet the terms of your agreement please contact us on 0845 121 5690 and we can arrange for an account manager to visit to review your current financial circumstances. You can also find a list of organisations that provide debt advice on our website: www.bayv.co.uk/help/responsiblelending.

Yours sincerely

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Appendices: Appendix 1 & 2

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Appendix 2: Category 4 (Arrears Increasing) Customer Address Date Agreement(s): XXXX XXXX Customer ID: Dear XXXXXX IMPORTANT – PLEASE READ THIS INFORMATION CAREFULLY Overdue Payment: £xxx Balance owing at the date of this notice: £xxx Despite our last attempt to contact you, the above agreement(s) have not been brought up to date. We are therefore required to serve this notice on you under the Consumer Credit Act 1974.

There are a number of ways we can help you but in order for us to best assess how, please contact our customer service department on 0845 121 5690 to arrange a mutually convenient appointment for us to visit and carry out a review of your account. This will enable the account manager to understand your current financial circumstances and agree a suitable repayment plan. Alternatively we can take a card payment over the telephone.

May we remind you once again that payments must be made in accordance with the terms of your agreement.

Services in respect of the care of your products are only applicable for up to date agreements and decisions on additional sales are subject to you being able to demonstrate a good payment history.

If you want more information about which payments you failed to make please get in touch with us. We are required to provide this information within fifteen working days of receiving your request .

Default Sums and Interest You will not incur any default sums or extra interest in relation to the missed or partly made payments referred to in this notice. This notice does not take account of any payments received after the date of this notice.

Notices For so long as you continue to be behind with your payments by any amount, you will be sent notices about this at least every six months. We are not required to send you notices more frequently than this, even if you get further behind with your payments in between notices.

Office of Fair Trading Information Sheet This notice should include a copy of the current information sheet on arrears prepared by the Office of Fair Trading.

This contains important information about your rights and where to go for support and advice, for example on applying for a Time Order as well as our right to charge you interest. If it is not included you should contact us to get one. Please refer to the Office of Fair Trading information sheet for more information about how to get advice on dealing with your debt.

Yours sincerely Buy As You View

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Appendix 3: Category 4 Arrears (Maintaining or Reducing Arrears Only) Customer Address Date Agreement(s): XXXX XXXX Customer ID: Dear XXXXXX IMPORTANT – PLEASE READ THIS INFORMATION CAREFULLY Overdue Payment: £xxx Balance owing at the date of this notice: £xxx Our records show that the above agreement(s) are currently in arrears, we are therefore required to serve this notice on you under the Consumer Credit Act 1974.

There are a number of ways we can help you bring your account up to date, for us to best assess how, please contact our customer service department on 0845 121 5690 to arrange a mutually convenient appointment to carry out a review of your account. This will enable the account manager to understand your current financial circumstances and agree a suitable repayment plan. Alternatively we can take a card payment over the telephone.

If you have already entered into an arranged repayment plan, please continue to maintain these payments.

We would like to remind you that payments must be made in accordance with the terms of your agreement.

Decisions on additional sales are subject to you being able to demonstrate a good payment history and services in respect of the care of your products are only applicable for up to date agreements.

If you want more information about which payments you failed to make please get in touch with us. We are required to provide this information within fifteen working days of receiving your request.

Default Sums and Interest You will not incur any default sums or extra interest in relation to the missed or partly made payments referred to in this notice. This notice does not take account of any payments received after the date of this notice.

Notices For so long as you continue to be behind with your payments by any amount, you will be sent notices about this at least every six months. We are not required to send you notices more frequently than this, even if you get further behind with your payments in between notices.

Office of Fair Trading Information Sheet This notice should include a copy of the current information sheet on arrears prepared by the Office of Fair Trading.

This contains important information about your rights and where to go for support and advice, for example on applying for a Time Order as well as our right to charge you interest. If it is not included you should contact us to get one. Please refer to the Office of Fair Trading information sheet for more information about how to get advice on dealing with your debt.

Yours sincerely Buy As You View

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Appendices: Appendix 3 & 4

Appendix 4: Category 11 Default Notice

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Appendix 5: Category 20 Arrears Customer Address Date Agreement(s): XXXX XXXX Customer ID: Dear XXXXXX IMPORTANT – PLEASE READ THIS INFORMATION CAREFULLY Opening balance (from previous notice) • The arrears at the time of the Opening balance (i.e. from previous notice).

• Closing balance (i.e. at date of this notice).

• Amount and date of payments made during period of notice.

• Amount and date of interest and other charges that became due during period of notice.

Despite our last attempt to contact you, the above agreement(s) have not been brought up to date. We are therefore required to serve this notice on you under the Consumer Credit Act 1974.

There are a number of ways we can help you but in order for us to best assess how, please contact our customer service department on 0845 121 5690 to arrange a mutually convenient appointment for us to visit and carry out a review of your account. This will enable the account manager to understand your current financial circumstances and agree a suitable repayment plan. Alternatively we can take a card payment over the telephone.

May we remind you once again that payments must be made in accordance with the terms of your agreement.

Services in respect of the care of your products are only applicable for up to date y.

If you want more information about which payments you failed to make please get in touch with us. We are required to provide this information within fifteen working days of receiving your request.

Default Sums and Interest You will not incur any default sums or extra interest in relation to the missed or partly made payments referred to in this notice. This notice does not take account of any payments received after the date of this notice in addition to any default sums and interest included in this notice Notices For so long as you continue to be behind with your payments by any amount, you will be sent notices about this at least every six months. We are not required to send you notices more frequently than this, even if you get further behind with your payments in between notices.

Office of Fair Trading Information Sheet This notice should include a copy of the current information sheet on arrears prepared by the Office of Fair Trading.

This contains important information about your rights and where to go for support and advice, for example on applying for a Time Order as well as our right to charge you interest. If it is not included you should contact us to get one. Please refer to the Office of Fair Trading information sheet for more information about how to get advice on dealing with your debt.

Yours sincerely Buy As You View

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Appendices: Appendix 5 & 6

Appendix 6: Regulatory Information (this has to be sent with all arrears letters)

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Appendix 7: Regulatory Information to be sent with all Defaults

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Appendices: Appendix 7

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Notes

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Est. 1972

Kingsway Buildings Bridgend Industrial Estate Bridgend CF31 3RY