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01 Oct 2024
by Tom Sharman, Jules Eames FCICM(Grad); PGCE

The relationship between mental health and the Credit Management and Debt Collections Industry

World Mental Health Day is the 10th October 2024. Let's talk about how we can help customers suffering with poor mental health and, just as importantly, ourselves when it all gets a "bit too much".

The Mental Health Foundation tells us that 875,000 workers suffered from work-related stress, depression and anxiety in 2022/23.

As Credit Management and Debt Collections professionals, we are used to looking after vulnerable customers suffering from poor mental health. But this can have an impact on our own wellbeing. 

In this blog, we’ll talk about how you can look after your vulnerable customers as well as, importantly, how to look after yourself when it all seems like too much. 

Looking after your vulnerable customers 

These are some of the key skills and strategies you can use to look after customers suffering from poor mental health. 

Empathy and Understanding 

We mention empathy a lot. Making a human connection is important. More so when it concerns mental health. 

People are complex. Even with an automated, AI-enhanced strategy, it won’t work for every problem. Despite the rapid advancements we see with GPT-4o, there are just some things that need a human being at the reigns. Someone that can truly put themselves in their customers' position and work toward a solution that benefits all. 

Flexible Payment Arrangements and building relationships 

A practical way to support financially vulnerable customers is to offer some respite. This involves identifying the level of credit risk your organisation is willing to take with the customer and the support mechanisms you are legally obliged to offer them. With this in place, ask yourself: can you work together to implement flexible payment arrangements? 

By alleviating some stress, you may be able to develop your relationship into one that has more trust and loyalty. By finding a solution that benefits the customer, the customer sees you as someone that wants the best for them – not just the organisation's goals. 

If you implement it successfully, you are likely to gain a loyal customer that chooses to protect the relationship they have. This means that when they are in a better position, they often choose to pay you on time because of what you did for them when they needed it most. 

 

Knowing what to do when you don’t know what to do 

You may find yourself in situations where you don’t know what to advise. Or it may be outside of your abilities to help. When this happens, you need to be able to know what to do when you don’t know what to do. 

But what do we mean? 

Be honest by stating that you may not be able to help, but you know someone who will. After all, that’s what we have charities like StepChange for. Connecting vulnerable customers with support services that can help them to manage their financial situation or mental health issues is something you must be capable of doing for your customers. By taking this action, you can continue to build on that relationship and move forward.  

If you’re a CICM member looking to put some of these skills to the test, you can have a go at doing so using our interactive guide: “How to handle a difficult conversation.” Use it to learn how to handle situations concerning customers suffering with poor mental health. 

Members only
How to handle a difficult conversation - Guide (1).png

How to handle a difficult conversation | Interactive Template

 

When it all gets too much– what can you do? 

Humans are molded by the environment around them.  

The debt collections environment can be demanding. It involves difficult conversations which take a toll on your well-being. Combined with the stigma in the industry, it can make it challenging to seek support. 

Remember Self-care 

It's easy to neglect and believe that it is not important, but it is. Leave work within the confines of your working hours and remember the life you live outside is extremely important, finite and valuable. So, look after yourself! 

Maintain open communication 

A problem shared is a problem halved. If your organisation has a wellbeing team or a mental first aid, use their services before it gets too much. Sharing with close colleagues or peers within the CICM Community may open discussions that lead to solutions from those who have experienced the same problems. And as a community, we can help others that may be suffering like you, to talk too.