Case Study : National Debt Management Organisation
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The challenge
To introduce an AUDDIS compliant, paperless Direct Debit facility within tight timescales, and enable
seamless integration of the new payment method with existing communication systems.
Background
Our client is one of the leading debt collection agencies in
the UK, with private and public-sector clients ranging from
banks to multinational organisations and government
departments.
A need for Direct Debit
Restricted by an uncompetitive and out-dated collections
model, the national debt management organisation wanted
to add Direct Debit as a payment option for their clients’
customers. The only payment options they had been able to
offer were proving to be expensive and inflexible, as well as
being an administrative burden.
Why outsource?
Already in possession of a Service User Number (SUN), the
national debt management organisation initially contacted
their Sponsoring Bank for the relevant paperwork. But, with
no experience of Direct Debit operations or compliance, the
organisation quickly realised they needed a specialist
provider to help them navigate the complexities of setting
up and then supporting an AUDDIS-compliant, paperless
Direct Debit facility.
Meeting stringent requirements
As a large reputable organisation, they were acutely aware
that introducing the new Direct Debit service would impact
not just them, but their clients and their clients’ customers
as well. With their reputation at stake, First Capital Cashflow
was required to undergo a rigorous third party supplier
onboarding audit.
First Capital Cashflow successfully met the stringent
requirements, which included a site tour and confirmation
of site security, as well as CRB checks for all staff. First
Capital Cashflow is now the organisation’s Direct Debit
partner of choice.
Why First Capital Cashflow?
• First Capital Cashflow’s rigorous data protection, as well
as its disaster recovery capabilities and resilience were
key considerations.
• The Integrated Application Programme Interface (API)
provided by First Capital Cashflow offers inbuilt
flexibility, as such it could accommodate the
organisation’s need for multiple due dates and payment
frequencies. Its user-friendly interface would also allow
them to amend payment schedules easily.
• First Capital Cashflow has an in-house software
development team (FCC), this meant the organisation
had the assurance that any bespoke interface
requirements could be met and any IT issues would be
resolved quickly.
• The organisation had an immediate need to integrate
Direct Debits from recently purchased books of business
and migrate them in a bulk transfer, First Capital
Cashflow’s considerable knowledge and experience in
this area gave them confidence that this would be
delivered seamlessly.
Fully Managed Bureau Service
After several project meetings and online demonstrations of
First Capital Cashflow’s service capability, the national debt
management organisation signed up for the Fully Managed
Bureau Service.
Managing the project
First Capital Cashflow assigned a core team to the project to
ensure it ran smoothly. Regular progress meetings were held
to confirm that all targets and requirements within the
Business Requirement Document were being met, and any
required changes implemented.
Setting up the Direct Debit facility
First Capital Cashflow worked with the organisation’s
Sponsoring Bank to obtain the necessary Direct Debit
sponsorship including AUDDIS and paperless options,
completing and submitting all the relevant paperwork.
With an ambitious go-live date to meet, First Capital
Cashflow expedited the implementation process by
undertaking all of the Bacs-required testing on the
organisation’s behalf, and assisting them with all
communications to their Sponsoring Bank.
Meeting regulatory requirements
First Capital Cashflow was instrumental in designing an endto-end process that is fully compliant with Bacs
requirements, such as managing the timing of advance
notifications to customers, and the submission of new
registrations directly to Bacs.
First Capital Cashflow gave the organisation advice on how to
integrate the handling of Bacs messages into their existing
internal systems in a way that fulfilled Debt Management
regulatory requirements. For example, handling unpaid
accounts, cancellations and indemnities.
Freeing up resources
To support the day-to-day management of the Direct Debit
facility, First Capital Cashflow handles all compliance-related
communications with Bacs and the Sponsoring Bank, leaving
the organisation free to focus on dealing with customer
communications. This process is facilitated by First Capital
Cashflow’s real-time reporting capability, which is fully
integrated into their internal communication systems.
To facilitate the implementation process, First Capital
Cashflow helped compile and review call centre staff training
documents, customer correspondence and Direct Debit
telephone scripts.
The outcome
With First Capital Cashflow’s expertise, the national debt
management organisation was able to introduce an AUDDIS
compliant, paperless Direct Debit facility within the required
timescales, providing a more streamlined collections process
that saves on time, costs and resources.
First Capital Cashflow is continuing to support the debt
management organisation with ongoing Bacs compliance and
customer service support.
Image courtesy of Naypong at FreeDigitalPhotos.net
If you’d like to find out how First Capital Cashflow can help your business, call us free on 0844 8266700,
or for more information, visit our website www.firstcapitalcashflow.com
First Capital Cashflow is a leading Bacs Approved Bureau (B60684) and is accredited as an Authorised
Payment Institution by the Financial Conduct Authority (FCA).