+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

PRINTER FRIENDLY

UK Consumer Debt Collection and Debt Purchase Market Insight Report 2021

  • ID: 5457604
  • Report
  • September 2021
  • Region: United Kingdom
  • 50 Pages
  • Apex Insight

FEATURED COMPANIES

  • Arrow Global
  • Axactor
  • B2 Holding
  • Encore Capital (Cabot)
  • EOS Europe
  • GFKL Lowell
This report focuses on the European consumer debt collection and debt purchase markets.

Consumer debt collection involves the recovery of money that is owned by individuals to businesses, including:


  • Banks and non-bank finance companies providing consumer credit
  • Utilities companies
  • Telecoms companies
  • Goods and services providers
  • Debt purchase involves firms buying portfolios of consumer debts from businesses
  • The debt purchaser buy the rights to the future revenue from loans, including the right to collect them
  • The purchaser may collect the debts itself (often through a separate group business) or may appoint a third-party debt collection firm to act on its behalf
  • The report quantifies the market size and trends while reviewing key factors behind these figures and exploring drivers of growth and profitability
  • The leading European debt purchase and collection groups are profiled and their performance is compared

What does it contain?


  • Definition of the European debt purchase and collection market
  • Analysis of the types of debts purchased and how purchases take place
  • Estimate of market size 2020 based on our analysis of market drivers, market-specific factors and financials of the debt purchase groups
  • Views on the outlook for the market
  • Analysis of the positioning and performance of the leading European debt collection agencies and debt purchase groups
  • Profiles of the leading groups

Market context


The market in which European debt purchase/collection groups operate overlaps significantly with that of large private equity investors. .

Key differences are that debt purchasers:

.
  • Are more likely to be skewed towards unsecured vs secured debts and consumer/SME vs larger corporate
  • Service some/all debts in-house while the large funds work with partners
  • Typically expect to hold the debt for a longer period (5-10 year outlook vs 2 years for funds)
  • Are more likely to seek payment arrangements than litigate

Purchasing strategy varies by country however, in most markets other than the UK, the debt purchase/collection groups purchase some secured and SME/corporate debts alongside unsecured consumer portfolios.

Utility/telecom debts are frequently purchased with some groups, such as Lowell in the UK, targeting this area. These are typically high volume/low average value portfolios.

Supply of debts has increased significantly across Europe as a result of the major programme of NPL sales supported by the ECB and governments to aid potentially insolvent banks in cleaning up their balance sheets.

Findings:


  • Italy has had the biggest value of large NPL sales, both in 2020 and since 2014
  • Spanish banks have also been major sellers along with those in the UK and Ireland
  • French banks have been notable for their low level of sales
  • The largest buyers of large NPL portfolios have been investment/private equity firms but big debt purchase/collection groups such as Intrum and Axactor have also participated
  • The European Parliament and Council are currently debating new legislative proposals for a Directive on Credit Services and Credit Purchases This is expected to lead towards a single market for debt purchase and collection and to encourage arrangements rather than litigation
  • Technological innovation is a top priority for market participants It is focused on creating pan-European platforms and enabling self-service operation, to reduce costs
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Arrow Global
  • Axactor
  • B2 Holding
  • Encore Capital (Cabot)
  • EOS Europe
  • GFKL Lowell
List of Exhibits
1. Market map
2. European non-performing and non-core loans sold by year/€bn
3. 2020 Non-performing and non-core loans sold by country/€bn
4. 2014-20 Total non-performing/non-core loans sold/€bn
5. 2020 Non-performing and non-core loans by purchaser/€bn
6. 2014-20 Total non-performing/non-core loans purchased/ €bn
7. Market size methodology
8. Consumer credit balance by country/€bn
9. Non-performing loan value as % of total value of loans to households excluding mortgages
10. Non-performing consumer credit loans/€bn
11. Total household lending balance/€bn
12. Non-performing household lending balance/€bn
13. Additional factors affecting addressable market size
14. Propensity to sell
15. Overall debt collection complexity score
16. Market size: book value of purchased debt/€bn
17. Ranking of European markets by estimated book value of purchased consumer finance debts/€bn
18. Ranking of European markets by estimated book value of purchased consumer finance debts/€bn
19. Aggregate book value of leading European debt purchase groups/€bn
20. Aggregate revenue of leading European debt purchase groups/€bn
21. Aggregate gross collections of leading European debt purchase groups/€bn
22. Leading European debt purchase groups – book value of purchased debts/€m
23. Key acquisitions by the leading European debt purchase groups
24. 2020 book value per employee/€m
25. 2020 collections per employee/€m
26. 2019 operating costs as % of revenue
27. 2019 return on equity (net profit after tax/equity)
Note: Product cover images may vary from those shown

A selection of companies mentioned in this report includes:

  • Arrow Global
  • Axactor
  • B2 Holding
  • Encore Capital (Cabot)
  • EOS Europe
  • Hoist Finance
  • Kruk
  • Intrum Group
  • Link (LCM) Europe
  • GFKL Lowell
Note: Product cover images may vary from those shown