On Tuesday the 1st of December, Arum hosted a webinar about the upcoming breathing space moratorium legislation.
The topic discussed was:
What is the new legislation and how can creditors and local authorities ensure they're compliant?
Watch the webinar on demand
About this webinar
A new 60-day breathing space moratorium (which will be interest, fee and enforcement action free, in order to provide customers/residents time to access debt advice) comes into force on 4 May 2021 across all debt types and industries.
We're already working with clients on implementing the necessary changes, and it's very different to anything that's come before.
You'll need to adapt your processes, interfaces and systems to include:
- receiving, processing and matching customer details from the insolvency service
- placing relevant customers on moratorium hold, handling exceptions, and reporting any unidentified related debts
- halting interest, fees and enforcement actions
- assigning debts to third parties
- designing and implementing processes to notify assignees of the moratorium
- removing customers from the moratorium.
All of this adds up to considerable new complexity, with limited customer visibility during this period. There is potential for costs to be driven up significantly and severe reputational risks, if not handled properly and implemented in time.