The Changing Nature of Debt Collection | Response to RG271
As you should be aware by now, ASIC has released Regulatory Guide 271 Internal Dispute Resolution (RG271) which came into effect on 5 October 2021.
RG271 explains what financial firms must do to have a compliant Internal Dispute Resolution (IDR) process in place that meets ASIC's requirements. With RG271, we've also seen some changes including acknowledgement of complaints, the role of "customer advocates" and a pilot version for the reporting process. At LCollect we act in most cases under a consignment agreement with our clients which, following consultation with ASIC, means that our clients own internal IDR process still applies or we must apply their IDR process. This is something that we had already identified previously as we see the debt collection landscape change.
As part of this change, and the introduction of RG271, we have made several major changes to our customer communications which now provides customers information about -
what to do if they are experiencing financial difficulty
contact details for the National Debt Helpline
their obligations to their creditors based on the Debt Collection Guidelines
what to do if they have a complaint or dispute
their right to have our client's IDR process applied and having our client manage this process; and
details to contact AFCA in the event that they are not satisfied with the response
We believe that by being proactive in this space we are reflecting the values of our clients and building relationships with our customers to assist them during what is often a stressful time which will in turn lead to better outcomes.
If you would like to further discuss our response to RG271 please reach out to us online, by email at online(at)lcollect.com.au or call us on (02) 8923-1600.
Image Credit: Ekaterina Bolovtsova