Humanizing the debt collection industry
|| In the Netherlands, over 650 000 households have problematic debts. These debts are so serious that they cannot be paid off within three years or without external help. Debtors and their families easily get trapped in a downward spiral leading to severe stress, mental and physical health issues, absenteeism at work, social isolation and ultimately even homelessness. Sadly, the traditional debt collection approach pushes people in financial distress further down. The high costs accumulate to an even higher bill to be fully paid by the debtor and the often harsh communication and added pressure works counterproductive. Chances of collection decrease, even more bills are left unpaid, the debtor’s situation worsens and the customer relationship is disrupted. The cost of the growing debt problem to be paid by society adds up to 11 billion euro annually in the Netherlands.
Faircasso is a Dutch collection agency with a mission to make debt collection more sustainable, fair and human. Using a personal, friendly and solution-oriented approach, they help debtors regain their strength. When debtors do not respond to the first letters, their team of trained debt relief workers reach out to fully understand all issues behind the debt and rebuild trust. In working on solutions, they consider all payment problems, as well as current and future payment options. When needed, the debtors are warmly referred to aid agencies. To avoid increasing debt and the stress of private debtors even further, Faircasso passes part of the collection costs onto the client. Legal proceedings are only used when necessary and effective. This warm approach does not only reduce human suffering, it keeps societal costs of to a minimum and ultimately ensures a better result for creditors: 10% more outstanding bills are paid and 40% more customers are retained.
Faircasso is working towards the first sustainable development goal: “End poverty in all its forms”.