UK Debt Purchase: Market insight report

What does this report contain?

In this report we review the UK consumer debt purchase industry. We quantify the market size and historical growth rates while reviewing key factors behind these figures and exploring drivers of profitability.
We also carry out an in-depth analysis of the relevant drivers of industry growth – in particular 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. Our analysis of historical trends and forecasts is anchored in this information.
While many reports on the industry contain data and description, a critical objective for us in writing this report has been to prioritise our insights and conclusions

Why is it useful?

Debt purchase has, in a short period of time, become a large industry.

• It has seen its fortunes vary dramatically in response to the economic environment.
• Both during its early growth stage and later restructuring, there has been significant private equity involvement in the industry.

We believe that, in order for those involved in the market to make the best decisions in this complex and changing environment, they need to have access to the best information and understanding of the trends and drivers. The aim of this report is to provide this.

It is intended for debt purchasers themselves as well as investors, banks, analysts, consultants and other parties with interests in the sector.

What are the sources and methodology?

This report is based on – Publicly available data including company annual reports, websites, press releases and government statistics

• Interviews with senior-level contacts in the market
• In-depth analysis of the macroeconomic environment and other relevant market drivers

Information from these sources has been synthesised and presented clearly and concisely with extensive use of charts and tables to illuminate points and support conclusions