Current debt collection processes and engagement strategies are becoming outdated. Today a single view of citizen debt empowers councils to take collections data from council tax, business rates, sundry debts, parking fines, and housing benefits systems and connect them in a single location, or ‘view’. This innovative approach to collections has many tangible benefits.
1. It Increases Collection Rates and Reduces Errors
Collecting the money a council is owed is essential. A single citizen view of debt leads to improved response rates and data integrity, as well as more accurate decision making, which results in improved collection rates. And when customer data lives in multiple tools and systems, a council is bound to uncover duplicate data, discrepancies, and errors. Creating a single citizen view makes your data valid.
2. It Changes Attitudes
Citizens’ attitudes to debt recovery and debt collection professionals have traditionally been negative; they’re perceived as greedy and uncompromising. A single view of debt system results in the collections process being seen as flexible, understanding and well-mannered. This impacts the citizens’ perception of your local council at large.
3. It Improves Communication with Citizens
Even with the advent of advanced debt recovery software powered by artificial intelligence, communication still remains the most important facet of the collections process. Developing bespoke payment plans, powered by information found in the single view of citizen debt, can deescalate challenging situations and improve communication channels for both council staff and debtors.
4. It Reduces Competition Between Departments
In reality a local council consists of numerous departments who can be actively competing over debt. However it’s much more beneficial and sensible to adopt a single view of citizen debt. This 360 degree view of all arrears means that the council can work with the debtor via one communication channel, and develop a single payment plan. This reduces competition between departments and increases the returns.
5. It Means You Can Focus on Ethics
The integration of a single view of citizen debt can build a fairer, more ethical and compassionate approach to debt recovery. It is a means by which local councils and businesses can take into account the challenging situations that indebted customers often found themselves in, since an holistic understanding of their debt helps us to understand the best and fairest way to help them repay and manage their debt. It also means that creditors can fully comply with the UK government’s “breathing space” regulations. These regulations give certain debtors the right to legal protections from creditor action for a defined period of time.
The single view of citizen debt provided by Lateral empowers councils and local authorities to help individuals pay off their arrears in a way that suits their specific circumstances. Having a single-view system gives local councils a detailed, holistic view of arrears, and there’s nothing more powerful. To learn more about how Lateral’s single view of debt can help you adapt and evolve, get in touch today.