The Crisis We Can’t Ignore
Household debt in the UK is climbing fast. As of 2024, it’s hit £210 billion. Utility debt has topped £3 billion. Council tax arrears? Over £5 billion. And what’s worse—three in four people in energy debt aren’t on any structured plan to repay it.
This isn’t just a financial issue. It’s a social and operational crisis.
Organisations are stuck in a loop. Arrears keep rising, but the tools we’re using to collect those debts are outdated, inflexible, and expensive. Letters, call centres, and enforcement agencies aren’t just costly, they damage trust and invite regulatory scrutiny.
Why the Old Model No Longer Works
Many organisations still lean on legacy systems and manual processes, fixed direct debits, and rigid repayment terms. When someone misses a payment, there’s rarely a way to adjust without friction.
This outdated model causes problems on multiple fronts:
- Operational drag: Teams waste time fixing errors and managing custom plans.
- Customer silence: People disengage when they feel they have no options.
- Poor outcomes: Debts often go unresolved or get written off, hurting both sides.
Things are out of step with today’s consumer expectations and regulatory demands.
How Programmable Payments Change the Game
At Raimac, we believe debt collection shouldn’t be a battle.
Programmable payments allow customers to tailor their repayment plans within limits set by the creditor. Amount, start date and frequency are all customisable. But here’s the key: everything runs automatically, in real time.
This means:
- Organisations get predictable cash flow
- Customers feel more in control
- Compliance is built in from day one
From Cost Centre to Customer Experience
Our platform gives both parties control and visibility. Here’s how it works in practice:
- Fast onboarding: Send a secure link by email or text.
- Customer-defined plans: Repayment details are set by the user, within approved boundaries.
- Seamless collection: Payments run via card, bank transfer, or Open Banking.
- Live insight: Merchants can view plan performance, missed payments, and customer actions—all in real time.
The results? Faster resolutions, fewer complaints, reduced call volumes and a customer who feels respected, not chased.
Restoring Trust, One Payment Plan at a Time
Programmable payments do more than improve efficiency. They shift the tone of the entire repayment journey.
Imagine:
- Customers getting notified before a payment is due so no surprises.
- The ability to pause or change a plan without waiting on hold.
- A system that flexes with real life not just policy rules.
That’s what today’s customers expect. That’s what regulators now require. And that’s what this technology delivers.
It’s Already Happening
We’re seeing a shift. Our partnership with payment companies are focused on helping utilities, merchants, and PSPs across the UK adopt customer-led repayment strategies, without sacrificing financial outcomes.
In the energy sector alone, bad debt costs over £800 million per year. Improving repayment by even a few percentage points unlocks real savings and reduces dependency on third-party collections.
Why This Matters Now
Rising bills. Higher inflation. Pressure on wages. For many households, every pound counts. The longer organisations wait to evolve, the harder and costlier it becomes to recover debt fairly.
But here’s the good news: customers want change. They’re asking for flexibility and honesty. And regulators, like the FCA, are setting new expectations around fairness and customer outcomes.
Programmable payments aren’t a nice-to-have anymore, they’re becoming the new standard.
Ready to Start?
If reducing arrears, improving collections, or modernising customer experience is on your agenda, we should talk.
Book a demo today and discover how programmable payments can cut costs, build trust, and keep you ahead of regulatory change.
