• Introduction

The Buoyant Group, trading as Pay Weekly Carpets (PWC), are committed to implementing clear and effective policies and support mechanisms to ensure fair and appropriate treatment of customers who may at times experience difficulties making their repayments whilst delivering good outcomes.

We recognise that many customers will experience payment difficulties during their relationship with us, these may be short or long-term and may be caused by a range of factors.

At PWC we will work with our customers to understand their individual circumstances and explore the options available to determine the most appropriate outcome based on each customer’s individual circumstances. This policy sets out our overarching approach towards customers in financial difficulty, however, we encourage our colleagues to consider all circumstances where variances to this policy may be appropriate and to engage with their management team where they feel it may be appropriate to act outside of policy.

Our policy is developed in line with our Regulatory requirements under the FCA Handbook, specifically in relation to Consumer Credit, Consumer Duty, industry guidance and best practice and should be considered alongside the PWC Vulnerable Customer Policy and PWC Credit Underwriting Policy where appropriate.

1.1       Purpose

The purpose of this policy is to define the PWC overarching approach to the treatment of customers at risk from, or who are already experiencing, financial difficulty and/or those who enter the arrears management default or recoveries process. The primary objectives of the policy are to ensure that appropriate frameworks, mechanisms, and tools are in place to support customers and colleagues during the period of financial difficulty.

This document provides further support and guidance to colleagues with regards to the PWC standards, expectations, mandates, and procedures. This document should also be read in conjunction with our Vulnerable Customers Policy.

1.2       Policy Owner

The PWC Financial Difficulty Policy is owned by the Head of Customer Journey with accountability for the content of the policy, compliance to associated regulatory requirements and executive review of policy performance.

1.3       Policy Monitoring

Conduct monitoring and adherence to the policy is owned by the Head of Customer Journey as part of PWC oversight and is accountable for ensuring appropriate monitoring plans, assessment frameworks and reporting mechanisms are in place to provide the Senior Leadership team with assurance that the policy is being adhered to and is performing in line with the conduct risk appetite.

1.4       Policy Implementation

The implementation of the policy is owned by the Head of Customer Journey, who is accountable for ensuring the policy is implemented at an operational level, with appropriate processes and capability to support effective implementation and operational application of the provisions within it.

1.5       Governance

This Policy will be formally reviewed at least annually and updated as appropriate to reflect changes in the business or regulatory environment. This policy and any changes to it must be approved by the Policy Owner and the Board prior to their introduction or operational delivery.

1.6      Scope

This policy sets out the regulatory requirements based on the scope and nature of our activities.

This Policy applies to all entities within the TBGL their Employees, Directors and Third Parties or outsourced providers working on their behalf (“Personnel”).

This policy is applicable to any colleague engaged in the handling of accounts in financial difficulty or arrears within the prescribed scope areas.


2.0     Implementation and Control

2.1      Exceptions to Policy

In ensuring the treatment of customers is appropriate to their personal circumstances, there may be limited instances where operating outside of this Policy is required. In such scenarios, it is the responsibility of Senior management to authorise any exceptions.

2.4       Policy Breaches

All breaches of this Policy identified, either by operational management or monitoring activities, must be captured and recorded as a Policy breach and reported to the Policy owner. This report must include details of the breach, the root cause of the breach, impact on both the customer and/or business and specify the rectification actions.

3.0     Financial Difficulty Principles

Our relationships with our customers are vital to the sustainability and growth of PWC. We recognise that where a customer is experiencing financial difficulty is a key moment of truth for our business, as such, we will always deal professionally, courteously, and respectfully in all interactions with our customers.

As a business we are determined to treat customers in difficulty with understanding and due consideration. If a customer is unable to pay, we will endeavor to work with the customer to find an appropriate resolution. This includes:

  • We will only take action to recover overdue monies where we consider all other reasonable options have been exhausted or the customer is unwilling to engage with us.
  • We will communicate with our customers in a professional manner ensuring that they are always treated fairly and endeavor to work with them towards the most appropriate outcome based on their individual circumstances.
  • We will allow customers reasonable time and opportunity to bring their account back up to date and work with customers to agree reasonable and affordable repayment arrangements.
  • We will seek to minimise the duration of the difficulty and the consequence, costs and other impacts arising from instances of financial difficulty, arrears, or payment shortfall for both customers and PWC.
  • We will always seek to understand the customer’s individual circumstances and ensure a considered, measured, and consistent approach is taken, which is, to the best of our knowledge, appropriate for their individual circumstances.
  • We will not pressurise a customer to enter any arrangement which would have a detrimental impact on the customer’s financial circumstances. Where appropriate we will perform an Income & Expenditure assessment to ensure any arrangement, we agree to is affordable and sustainable to the customer now and in the foreseeable future.
  • Our colleagues will be trained and competent to meet the requirements of this policy and the underlying regulation and guidance. We will show due care and empathy towards our customers at all times.
  • Where a customer’s financial difficulty is due to them being impacted by a vulnerable situation or characteristic, we will seek to provide tailored and flexible solutions and services appropriate to the circumstances of the vulnerability.
  • Where customers have encountered short term issues and are able to return their account to good standing this should be the preferred course of action.
  • Where accounts are defaulted and transferred for recovery activity, customers should be fully informed of this and provided with information about recovery activity.

4.0     Definitions

At times, an account may incidentally enter the arrears management process due to an internal oversight or error, in these circumstances, PWC consider it appropriate it identify and address the issue and work with the customer accordingly.

In line with the guidance set out in CONC 1.3.1. we consider that a customer may be in financial difficulty in scenarios including:

  • consecutively failing to meet minimum repayments.
  • adverse accurate entries on a credit file, which are not in dispute.
  • outstanding county court judgments for non-payment of debt.
  • inability to meet repayments out of disposable income or at all, for example, where there is evidence of non-payment of essential bills (such as, utility bills), the customer having to borrow further to repay existing debts, or the customer only being able to meet repayments of debts by the disposal of assets or security.
  • consecutively failing to meet repayments when due.
  • agreement to a debt management plan or other debt solutions.
  • evidence of discussions with a firm (including a not-for-profit debt advice body) with a view to entering into a debt management plan or other debt solutions or seeking debt counselling.

Where such characteristics are observed or identified, colleagues are expected to adhere to this policy during their interactions with customers.

4.1      Definition of Arrears and Entry

An account will enter the arrears management process by failing to make the due payment on the day that it was due. Accounts will enter PWC collections systems at one day in arrears. Customer will receive notification that the recurring payment has failed and that we will retry later that same day, a link will be sent out to the customer to pay.

4.2      Pre-arrears

In the event that a customer notifies PWC of a change in circumstances or forthcoming financial difficulty which may impact on their ability to maintain their repayments, we consider these accounts to be in pre-arrears. In such instances, and with consideration of the customers individual circumstances, forbearance treatments may be applied. An account does not need to be formally in arrears for consideration and application of forbearance solutions.

4.3       Credit Reference Agency Reporting

We will report the active status of accounts in relation to any instances of arrears on or around the 5th working day of the month post an account being in arrears for 28 days. We will continue to report the status of the account for all subsequent months where the account remains in arrears. Where appropriate, we will also report the status of payment arrangements and the termination of credit agreements in line with reporting guidelines.

4.4      Vulnerable Customers

Where PWC is notified, or colleagues reasonably consider an account holder to be vulnerable, specific reference should be made to the Vulnerable Customer Policy. The vulnerability procedure will be followed to assist customers that require further support.

5.0 Arrears Management

Where a customer’s account enters the arrears management process, PWC will work to ensure that the customer is aware, and that appropriate communications and actions can take place. This will include proactively contacting the customer.

5.1      Contact Principles

PWC may contact the customer to discuss the arrears and seek to establish the reason for them, where possible implementing a resolution to bring the account back up to date. The options available to the customer will depend on their personal circumstances, communications will emphasise the support which PWC can provide the customer and what is expected from the customer.

Customers may be contacted via several channels including written, telephone or electronic communications.

In any event, we will ensure that:

  • We will not contact customers at unreasonable times and will pay due regard to any reasonable requests made by customers to only be contacted at certain times and by certain mediums.
  • We will not harass or unduly pressurise customers. Where a customer has appointed a third-party representative to act on their behalf, and we have confirmed that the customer has given consent for us to deal with the representative, we will not refuse to deal with that party or bypass them to contact the customer directly unless there is an objectively justifiable reason for doing so.
  • In all telephone contact we will take steps to ensure we are speaking with our customer, or their authorised representative, and will not discuss a customer’s account where we have not been able to do this.
  • Any contact numbers provided to customers in order to speak to PWC are either local rate or freephone numbers.
  • We may use recognised Third Parties to locate a customer if we have lost touch with them or the details, we hold for the customer may be inaccurate.

When contacting a customer directly or via an authorised third-party with regards to debt recovery, PWC ensures that we: –

  • Never disclose details of a debt to any individual without first establishing, by suitably appropriate means, that the individual is (or acts on behalf of) the customer.
  • Do not unfairly disclose or threaten to disclose information relating to the customer’s debt to any third party.
  • Will never act in a way likely to be publicly embarrassing to the customer.
  • Properly address all communications to the customer.
  • Make reasonable attempts to contact the customer at a time appropriate for them upon their request.
  • We pay due regard to the information needs of our customers and communicate information to them in a way which is clear, fair, and not misleading.
  • Particular care is taken for vulnerable customers or potentially vulnerable customers.
  • All communications must clearly state their intended purpose and provide the customer with their RA reference number and our contact details.
  • Our employees clearly identify themselves, their role, confirm they are calling from PWC and explain their intentions as part of any telephone call and any messages that are left.

5.2      Understanding Customer Circumstances

In all instances of engagement between PWC and customers in arrears, payment shortfall or financial difficulty, employees should seek to understand customers individual circumstances.

5.2.1    Individual Circumstances

Employees should seek to understand:

  • The reasons for arrears, payment shortfall or financial difficulty.
  • Critical information (e.g. is the customer vulnerable or impacted by a specific event)
  • The anticipated duration of the period of financial difficulty.
  • The customers’ expectations regarding their financial position moving forward.
  • The customers’ proposed or preferred approach to addressing the situation.

Understanding this information is critical to determining both the underlying circumstances for the customer and to help shape the potential solutions PWC can offer.

5.2.2    Assessment of Affordability

We do not require evidence of affordability to be provided by the customer in order to agree a repayment arrangement.

5.2.3    Signposting to Free Independent Advice & Charitable Organisations

When interacting with customers in arrears, payment shortfall or financial difficulty, colleagues should signpost to free, independent advice where appropriate. Where it has been identified that a customer has vulnerable circumstances, colleagues should signpost to relevant charities who can provide tailored support, assistance and financial advice which is best suited to the customer’s individual circumstances.

5.3      Forbearance and Solutions

Our aim is to provide customers with solutions that enable them to bring the account up to date.

A range of forbearance options will be considered and discussed with each customer to determine what is appropriate and affordable in their circumstances. PWC must be able to demonstrate why the forbearance arrangement selected is appropriate for that particular customer’s individual circumstances.

When considering solutions for customers, PWC will consider:

5.3.1    Promise to Pay

Where the customer advises they can make any outstanding payment or payment shortfall prior to the next due payment, and this will not create ongoing financial difficulty.

5.3.2    Change of Payment Date

Where a customer’s payment date no longer aligns to their regular income date and/or the customer has preferences for an alternative date to allow the better management of funds on a monthly/four weekly/ fortnightly and weekly basis.

5.3.3    Payment Arrangement

Where arrears balances or payment shortfalls cannot be remedied immediately, repayment plans can be agreed to support the customer in repaying the balance over time. A repayment plan must be affordable and on an agreed period of time based on individual circumstances, to minimise the ongoing impact of an arrears position for the customer.

5.3.4    Reduced Payment Arrangement

This can be a temporary arrangement whereby the customer makes reduced towards the account. This can be considered as a short-term treatment, or a long-term plan supported by a detailed understanding of the customer’s individual circumstances.

5.4      Breathing Space

Where a customer has opted to or has been referred by PWC to seek independent financial advice (outside of the Debt Respite Scheme), or requires time to address their financial circumstances, PWC will allow an initial period of up to 30 days breathing space for this to take place, this can be extended upon discretion.

During this period, arrears management activity and contact will commence once the period of breathing space has elapsed and where there has been no further engagement from the customer. Further instances of breathing space may be agreed, based on individual circumstances.

5.5      Debt Respite (HM Treasury Breathing Space)

The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium, England, and Wales) Regulations 2020.

The Debt Respite Scheme gives an individual in problem debt the right to legal protections from creditor action for a defined period while they receive debt advice and potentially enter an appropriate debt solution (“the moratorium’’). The scheme is split into two forms: the Breathing Space Moratorium and the Mental Health Crisis Moratorium. We refer to the scheme internally as “Debt Respite” in order to distinguish it from “the FCA CONC 30-day forbearance” which refers specifically to the 30 days hold period provided under CONC 7.3.11 R and 7.3.12 G.

PWC will fully comply with the requirements of the Debt Respite Scheme.

The Breathing Space Scheme only applies to England and Wales.

There are two types of moratoria within the regulations – Breathing Space Moratorium (generally lasting for 60 days) and a Mental Health Crisis Moratorium (which lasts for 30 days after the date on which the customer stops receiving mental health crisis treatment as detailed in the regulations).

5.5.1    Breathing Space Moratorium

The moratorium lasts for 60 days unless brought to an end early under any relevant provisions and the debt advice provider must conduct a midway review between day 25 and 35.

Where we are notified of a customer entering a moratorium, the protections (as listed above) proceed as normal, until the moratorium expires. Upon expiry of the moratorium (which will be confirmed on the notification of the moratorium), a review of the customer’s file will be conducted, and we will try to re-engage with the customer, or contact their debt adviser, where appropriate to do so, and subject to any client instructions.

5.5.2    Mental Health Crisis Moratorium

A mental health crisis moratorium is only available to individuals receiving mental health crisis treatment which has been approved by an Approved Mental Health Professional (AMHP). The process for initiating such a moratorium is similar to that for a breathing space moratorium but in this case, in general, the moratorium lasts for 30 days after the date when the customer stops receiving mental health crisis treatment (unless brought to an earlier end in line with the requirements of the regulations).

Where PWC is notified of an MHC moratorium, the protections (as listed above) proceed as normal, until the mortarium expires.

5.5.3    Ongoing Provision of Forbearance

Regardless of the circumstances, PWC will give due consideration to a customer’s circumstances. A customer exiting the 60-day statutory breathing space may still be in need of forbearance; a customer who is ineligible for the statutory scheme may require time to seek assistance; a customer exiting a mental health crisis moratorium may need more than the 30 days post-recovery to deal with their finances. PWC are required to comply with the statutory requirements of the scheme, but PWC will also comply with best practice and regulatory expectations around the treatment of customers and will give appropriate consideration to their circumstances, regardless of whether they are involved in a statutory scheme or not.

Forbearance is tailored for each customer, in their interests and considers their individual circumstances.

5.7      Broken Arrangements

PWC will always seek to work with customers when they are forming a repayment plan and will accept new arrangements where a previous arrangement has failed.

6.0     Payments and Charges

6.1      Debit card payments

Where a recurring payment is the preferred payment method with regard to a contractual weekly payment amount, PWC will attempt to take the payment on due date. If an attempt to process the payment fails or declines, PWC will notify account holders by both email and text message. A re-presentation of the recurring payment will be attempted later the same day and again the following day.

6.2      Card Payments

Payments by Debit Card are accepted for both regular payments, arrears, and payment arrangements.

Colleagues cannot offer credit cards as a payment method. Where a customer specifically requests to make payment by Credit Card, colleagues must confirm that this may cost the customer more in the long term and should not be considered a sustainable payment method.

7.1      Recovery Agents

Upon termination, PWC will instruct approved Third-Party agents to contact the customer and attempt to reengage the customer.

8.0     Complaints, Disputed

8.1      Complaints

Where a customer wishes to make a complaint, they are to be referred to our Complaints Department.

Depending on the nature of the complaint, we may hold arrears management activity whilst the complaint is under investigation. If a valid complaint has been submitted to the Financial Ombudsman Service, we will not initiate legal proceedings whilst the complaint is being considered.

Upon completion of a complaint investigation and following appropriate resolution, arrears management activities will resume.

Reference should be made to the PWC Complaints Policy.

8.4      Statute Barred Debts

Statute barred debt is where the prescribed period within which a claim in relation to the debt may be brought has expired. In England, Wales, we recognise the limitation period as generally being six years in relation to debt and five years in Scotland from last contact made.

Whilst we acknowledge that in England and Wales, a statute barred debt still exists and is recoverable, we ensure never to attempt to recover such a debt where we (or someone acting on our behalf) has not been in contact with the customer during the limitation period.

PWC acknowledge that in Scotland, a statute barred debt ceases to exist and is no longer recoverable if:

  • A relevant claim by us or on our behalf, has not been made during the relevant limitation period; and the debt has not been acknowledged by, or on behalf of, the customer during the relevant limitation period.
  • We will only seek to continue the recovery and pursuit of an outstanding debt that is statute barred, where we (or someone acting on our behalf) has been in regular contact with the customer during the limitation period. In these instances, all recovery materials and communications make the customer’s rights and obligations clear.
  • Where a customer advises us or someone acting on our behalf, that they will not pay a debt because it is statute barred, we will not continue to demand payment from that customer.
  • Where the debt is subject to a prospective debt purchase. We always identify debts that we know are statute barred, to avoid any inappropriate action being taken against customers in relation to such debts.

9.0     Dealing with Third Parties

9.1      Authorised Representatives

PWC will engage fully with an account holder’s representatives in circumstances where the representative holds appropriate authority as a Power of Attorney or whereby the account holder provides Letters of Authority which approve the third party to act on their behalf. Proof of authority to act must be provided to PWC prior to information being shared or action taken in respect to account holders products or balances.

9.2      Free Debt Advice / Debt Management Charities

PWC promotes the use of free independent debt advice within the financial services industry. Where account holders seek debt advice will support them in doing so, allowing for a reasonable period of time for engagement to take place before progressing through arrears management processes.

Where independent advice organisations provide PWC with affordability assessments or proposals on an account holders behalf, these will be reviewed and considered in line with the PWC policy and treatment options.

9.3      Parties Acting on Behalf of PWC

There may be instances where PWC is required to engage with external Third Parties, including Solicitors, to act on PWCs behalf. Suppliers are also expected to adhere to the principles outlined in this Policy.

10.0   Writing off Debt

There are circumstances in which PWC will write-off outstanding balances. Where write-off is considered, this means that PWC will forgo the outstanding balance and cease interactions with the customer moving forward.

10.1    Medical / Compassionate Write Off

We may consider writing off an outstanding balance when, due to medical circumstances, it is recognised that a customer cannot repay the debt on their contractual terms as their situation is severely impacting their finances. This is most likely to occur, but not limited to, where vulnerability relates to terminal illness, potential suicide, self-harm, or severe and long-term mental health issues.

10.2    General Write Off

Write-off of outstanding balances may take place where:

  • Where the customer or a third-party acting on their behalf has met the requirements for exceptional circumstance e.g., deceased, terminal illness, extreme financial hardship, or a vulnerable customer. In such cases, the customer will be notified in writing that their account or the arrears has been written off and will no longer be pursued by the company.
  • Where the customer can no longer be contacted or their whereabouts is unknown and all efforts to trace them have been unsuccessful.

10.3    Deceased Customers

In the event that a customer dies during the term of their agreement, PWC will seek to work compassionately with the customers relatives or representatives and write off the outstanding balance.