Intrum Justita + AK on the way DOWN?

[pmhcfc]

Interesting report from Ken Maynard at Cabot - have highlighted the

links to this thread's title -

 

Date Published: October 2009

Published in: Credit Management

Author: Ken Maynard, Group Chief Executive

Source: Cabot Financial Group

 

Debt purchase opportunities on either side of the Atlantic

 

The global economic crisis has created a challenging market for the major debt purchase markets in the UK, USA and Europe. A lack of refinancing options is the biggest headache for most debt purchasers, however for those that do have access to capital; this is a time of plentiful opportunities.

 

In the United States, portfolio prices have dropped significantly over the past year and while these price reductions have been well received by the debt purchasing industry, many debt buyers believe that they have not dropped far enough, particularly when compared to the decline in liquidation rate performance over the past year.

 

It is to be expected that liquidation rates fall in times of rising unemployment; however this does not appear to have been factored in by many debt sellers. Current portfolio price ranges do not fully reflect these declines because debt buyers in some cases are prepared to pay higher prices for certain portfolios, and credit issuers in some cases are not willing to accept the reduced pricing levels

.

Market conditions in the Eurozone have not been any rosier during the first half of 2009. Oslo-based debt buyer Aktiv Kapital has effectively closed its Denmark office after undertaking a strategic cutback of staff and operations. Their operations in Spain have also been curtailed with the closure of their Barcelona offices and general cut back of staff numbers. Also, one of the largest debt collection agencies in Europe, Intrum Justitia, has announced that it will cut 247 jobs from its UK headquarters in Liverpool, leaving just 40 employees.

 

An important aspect of the current European market is the withdrawal of investment banks from the debt purchase market. This of course means fewer competitors and therefore increased selectivity in the types of debt portfolios being purchased.

In summary, many of the same problems are affecting debt purchasers in the major markets of Europe, the UK and the US. A lack of refinancing options is the obvious stumbling block but the paradigm of debt sellers has altered significantly as they have begun to outsource portfolios to collections agencies rather than selling.

Increased regulation and scrutiny from overseeing bodies such as the OFT are now becoming common place as a number of significant players have experienced. The industry best practice guidelines need to be strengthened to oust unsatisfactory behaviours and a stronger ethical approach is required in some instances.

The survivors will be those who rise to the challenge of these increasingly tough market conditions accepting the need to raise standards. A sound operation with best technology, excellently trained and competent staff and of course good funding will also help!

Ken Maynard

Group Chief Executive

[F_DCAs]

Intrum and AK about to fizzle out. Oh, what a tragedy - my hearts bleeds.

 

Let's see if we can give them that final push over the cliff.

[dcakiller]

Ha Ha Ha Ha:D:D. another party on cag.

[mr.ton]

How does that violin tune go now?

[pmhcfc]

How does that violin tune go now?

 

Loudly one hopes

[F_DCAs]

 

One of the greatest Youtube clips there is.

 

Mr. Hitchens' absolute lack of sorrow and lack of need to justify his remarks are about how I feel about the hopefully imminent demise of these two companies, who have been trading for far too long.

[cashins]

Increased regulation and scrutiny from overseeing bodies such as the OFT are now becoming common place as a number of significant players have experienced. The industry best practice guidelines need to be strengthened to oust unsatisfactory behaviours and a stronger ethical approach is required in some instances.

 

Errrrr, this gem is brought to you by Cabot?????????

 

David

[PGH7447]

maybe Ken has seen the light - hallelujah - Ken is a convert

[sillygirl1]

HA HA, one can't cry for them, Aktiv have written to me once this year and got my 'prove it and it will go in my bankruptcy pot..." letters. Nothing back yet.

 

Also have you notice don the HFO threads they haven't had activity... I think they are in trouble too!

[lickthewallfatboy]

 

One of the greatest Youtube clips there is.

 

Mr. Hitchens' absolute lack of sorrow and lack of need to justify his remarks are about how I feel about the hopefully imminent demise of these two companies, who have been trading for far too long.

 

Hitchins is a fat sweaty alcoholic slobbering bully

 

perfect DCA employee material

 

and that's just his good points

[F_DCAs]

I think the same of Hitchens for the most part. That clip represents one of the few times when he's absolutely dead on the nail.

 

The other three characters are notorious in America (not in a good way - Sean Hannity would be justifying DCAs if he lived and worked over here).

 

Watching them get slapped down in that matter (even if I don't like the guy doing the slapping) is priceless to watch.

[count orlok]

How does that violin tune go now?

 

I believe it's called "Hearts and Roses" but I'm sorry I can't seem to find a link to the music

Edited October 9, 2009 by count orlok