Claims made easy
It is clear that Covid-19 is negatively impacting the UK economy. Some businesses have suspended trading momentarily, some are scaling back operations and some have merged with other companies or ceased to trade completely.
Given the uncertain outlook for the economy over the coming months it is possible that a significant number of home improvement companies and building contractors could go into administration. Companies in this sector are likely to experience difficulties over the coming months, not least as government support is withdrawn, and the situation has been highlighted by companies announcing closures along with other major retailers and manufacturers.
We are now seeing businesses of all sizes being affected. With the market being adversely impacted it is highly probable that unemployment will increase. The fallout from this could impact the financial industry, where lenders and credit card companies are used to finance essential home improvement work. With an increasing number of retailers ceasing to trade, this could lead to a rise in Section 75 claims for customers that are having to rely on credit cards for financing. Coupled with the fact that some customers are already financially stressed, this could lead to bad customer experiences.
Lenders have historically managed Section 75 claims by asking consumers to obtain their own expert reports and estimates for rectifying issues. This approach can place potentially vulnerable customers in difficult situations where they are left feeling isolated and unsupported, and unsure what can be classed as an expert report. Customers may also experience distress and inconvenience when they feel they have not been supported, with complaints potentially being escalated to the Financial Ombudsman Service.
Previously, lenders have been able to manage BAU claim volumes where small numbers of businesses have entered administration. However, due to the current crisis and forecasts about the economy, it is possible the industry will see a rise in claims. With many lenders currently operating home-based teams only, an increase in cases could complicate things further. If you also factor in that customers will need more assistance, the situation could cause further delays and inconvenience.
However, if cases are proactively managed, inspections completed by experts and repair work undertaken by competent and vetted suppliers, settlement costs can be significantly reduced and lifecycle times minimised. It is therefore more important than ever for lenders and credit card providers to review how these claims are managed and to consider the best approach for their businesses and customers.
How QASSS can help
At QASSS, we provide a comprehensive solution for financial institutions and insurers across the home improvement and renewable energy sectors – claims management, inspection services and remedial works.
- When companies cease to trade, we provide a unique “one-stop shop” solution for lenders, brokers, credit card companies and IBG providers.
- We provide a national solution for Consumer Credit Act claims and our service spans all home improvement verticals.
- We protect the reputation of financial businesses, whilst controlling their claims spend and ensuring the right outcomes for customers.
- We handle cases for lenders where companies are still trading and inspections or remedial works are needed.
- We provide insurers with a unique end to end solution for claims involving renewable equipment.
Why we are different
- Capability and knowledge spans the lending and insurance space
- Deep understanding of Section 56 & 75 claims
- Claims surge planning to cover major retailer collapse
- Fixed inspection and claims management fees
- Award-winning services
- 2 year guarantee on completed works
- Desktop and site validation
- Tiered Inspection Services
- Use of video capture technology
- Vetted and managed supply chain
- Embedded approach to vulnerable customers
- Fraud management
If you’d like to learn more, contact Scott Robinson, Commercial Director, on 07341 084401 or email firstname.lastname@example.org
Original article published on UK Finance