Late Stage Arrears -

Understanding Late Stage Arrears

Late stage arrears occur after accounts have entered post-default but before formal termination or repossession. This stage presents an opportunity to rehabilitate an agreement avoiding unnecessary termination of agreements or asset repossession. Effective management at this stage enables improved cure rates, reduces financial exposure, and ensures outcomes are fair and compliant with FCA and Consumer Duty obligations.

At Equivo, we apply our expertise to assess each case individually. We support customers who may be unable to maintain agreements while protecting lender interests, offering a structured approach that prioritises resolution and rehabilitation.

How Equivo Supports Lenders and Customers

Our late stage arrears service focuses on ethical and compliant recovery. We recognise that defaulted accounts can have long-term consequences for both lenders and customers. Intervention at this stage reduces terminations, improves recovery outcomes, and ensures responsible lending practices are maintained.

Maintaining Customer Engagement

We use targeted strategies to reconnect with customers, understanding that engagement is critical to recovery. Our experienced team supports lenders in achieving positive outcomes by identifying the right solutions for each customer’s circumstances, without always resorting to unnecessary defaults.

Multi-Channel Contact

Equivo uses a blend of communication channels to reach customers effectively.

Dialler, SMS, email, webchat and digital portal interactions

Flexible seat allocation to manage seasonal or monthly peaks

White-labelled or disclosed contact centre activity as preferred

Identifying Changing Circumstances

Where customers cannot meet obligations, we work collaboratively to identify alternative solutions, including affordable repayment plans or amicable vehicle recovery. Our approach ensures outcomes are aligned with both lender and customer needs, mitigating financial risk while supporting responsible lending practices.

Our Four-Step Approach to Late Stage Arrears

1.

Case Assessment

Accounts are reviewed individually to assess payment history, vulnerabilities, and risk. FCA and Consumer Duty principles guide the assessment to ensure fair treatment.

2.

Customer Engagement

We proactively contact the customer across multiple channels supported by field visits. Engagement is used to understand circumstances, support repayments, and identify vulnerabilities.

3.

Tailored Resolution

Recovery plans are implemented based on assessment and engagement. This may include medium-term repayment arrangements, rehabilitation, or escalation to repossession while remaining fully FCA compliant.

4.

Ongoing Management

We provide lenders with regular updates, enriched account data, and insights. All activity is recorded for transparency, compliance, and to ensure the best outcomes for both the lender and the customer.

What This Means for You

Effective engagement with customers in advanced arrears

Increased repayment and rehabilitation of challenging accounts

Fewer agreement terminations or asset recoveries

Minimised financial exposure for lenders

Ethical, FCA-compliant activity aligned with Consumer Duty

Why Choose Equivo

Equivo is an award-winning, FCA-authorised firm with expertise in ethical arrears management. Our late stage arrears service ensures compliance with regulatory requirements and Consumer Duty, protecting both lender and customer interests. We combine regulatory excellence with tailored case handling to maximise recovery and support fair customer outcomes.

95%

Cases engaged proactively

90%

Accounts rehabilitated

100%

FCA compliant

92%

Improved cure rates

Client Questions

How does Equivo keep me informed on account progress?

We provide timely updates on engagement outcomes and repayment proposals, with recommended next steps. Clients can access this information through a secure portal, ensuring transparency, confidence, and assurance that each case is handled ethically and efficiently.

How does Equivo protect my financial interests?

By assessing each account individually and implementing proportionate interventions, Equivo helps minimise impairment and recover value, while maintaining ethical engagement and safeguarding long-term customer relationships.

What options are available if a customer cannot meet their obligations?

Equivo identifies solutions tailored to the customer’s circumstances, such as medium-term repayment arrangements or other account rehabilitation plans. Where necessary, escalation options or repossession are considered, always within a compliant and ethical framework.

How are client decisions incorporated into the process?

Equivo works closely with clients to align interventions with their priorities, risk appetite, and internal policies. This ensures that all recovery activity reflects the lender’s requirements while remaining fair to the customer.

How are fees for late stage arrears management structured?

Fees are transparent and reflect the level of intervention required. They cover monitoring, engagement, reporting, and any escalated action, providing clients with clarity and predictability for budgeting purposes.