- 2 July 2012
|Debt purchase market study concludes 2012 levels will reach £900m|
|Thursday, 03 May 2012|
|Consumer debt purchase market study by Apex Insight reveals a £900m market which has now rebounded from its post-credit crunch woes.
Apex Insight has published new research on the UK consumer debt purchase industry. This quantifies the market size and historical patterns of growth, probes key trends behind the figures, profiles and explores the performance of leading companies, discusses industry value drivers and sets out a market forecast supported by relevant evidence.
The study is based on data from economic and company sources as well as interviews with senior-level contacts in the market. It includes analysis of relevant economic indicators – such as total consumer debt, unemployment levels and debt write-off rates – and more specific factors including levels of personal insolvencies, the attitudes of consumer creditors to the concept of debt sale and the discount to face value typically paid for debt. The analysis of historical trends and forecasts is anchored in this information.
It is intended for debt purchasers themselves as well as private equity and other investors, banks, analysts, consultants and other parties with interests in the industry.
The study concludes that, having been impacted by the credit crunch, which caused the fast-growing market to stall and reverse in 2009, industry revenues will recover to reach around £900m during 2012.
Future growth appears supported by the recent successes of several of the large debt purchasers in raising further capital and reported recovery in the level of purchases being completed.
However, some uncertainties remain, such as the risk that slow economic recovery with continued high unemployment could lead to consumers reducing their borrowing levels resulting in less debt being put up for sale combined with a deteriorating collection environment.
Furthermore, the market remains competitive with many smaller operators bidding for portfolios alongside the big six specialists.
Findings from the study are presented clearly and concisely with extensive use of charts and tables to illuminate points and support conclusions.
(Source – Apex Insight Press Release)