What Is The Outlook For Debt Collection Post JobKeeper?

With emergency measures such as JobKeeper and Jobseeker approaching their termination date, a spike in debt has increased the interest of corporate investors and the need for secure and empathetic online debt collection.

Since the first Coronavirus lockdown, a combination of the Federal Government’s wage subsidy schemes, rent, and bank deferrals and a flexible Australian Tax Office has made debt collection a tall order in 2020.

However, the outlook for 2021 is promising as the Australian Financial Review (AFR) recently cited an industry report from CreditorWatch that showed a correlation between the increase in debt inquiries and the impending termination of government wage subsidies for businesses. “Credit inquiries increased 7.5 percent from July to August – the fourth consecutive month this year they have risen. This now reflects pre-COVID levels. “Late payments in August have also risen across half the sectors monitored by CreditorWatch”.

Furthermore, the same AFR article published in October 2020 quoted Debtrak Founder Callum Hoogesteger “the complex COVID-19 situation meant far more sophisticated technology would be needed to identify and deliver on debt collections”. Typically, reliable payers may find themselves in a default scenario thus heightening the need for safe online debt collection technology such as eCollect’s Debt Terminator.

Based on the inquiry you make, The Debt Terminator software will propose a recommended course of action and a link to the most suitable people for the task, along with a quote. The specificity of Debt Terminator’s recommendation will reflect the accuracy and amount of information given at the point of inquiry.

There is no cost or obligation to use the online service, one can simply use it to gauge their options. eCollect’s point of difference is that the information given by the Debt Terminator is designed by experienced lawyers and collectors in aid of providing a personable, high-quality first consultation. As the advice is consultative, it is recommended you speak directly with a lawyer if you want legal advice.

As debts are expected to rise in a post-JobKeeper economy, Federal debt collection agencies such as the Australian Tax Office (ATO) will be looking to mimic the sympathetic approach of smaller debt collection agencies. ATO assistant commissioner Sylvia Gallagher the ATO will be adopting an “understanding approach to its compliance activities, confirming that it would not look to claw back stimulus payments where an honest mistake had been made”.

As trailblazers for a personable and thorough approach to debt collection, eCollect’s ethic and performance have garnered them huge popularity amongst 10,000 individuals and companies across Australia and New Zealand. Gallagher also further elaborates on where leniency will be shown – “where we know that people have made honest mistakes in terms of the stimulus measures, we will work with taxpayers and business owners to avoid and overcome these honest mistakes and we will be reasonable and flexible”. The eCollect empathetic approach predates a global pandemic as their website states: “One of the biggest mistakes that people make while asking for payments is being rude and disrespectful. eCollect’s professional debt recovery team are polite, strategic, and capable of addressing a complex and emotional situation tactfully”.

As an increase in debt looms so will the need for a more lenient and thorough approach to its collection. eCollect’s Debt Terminator is an obligation-free process that allows debtors to undertake the collection process with humility and ease.

To have a free assessment of your debt, please complete the debt terminator form and one of our experienced business development managers will be in contact during business hours