Australia's No. 1 Secondary Debt Purchasing Company

For several years we have recognised the need in Australia for a secondary debt buying market.

The debt buying market in Australia is still very much in its infancy, being only 10 years old. The US market, by comparison is much more developed whereby there is a ‘food chain’ insofar as the big buyers who can afford to buy large portfolios of freshly charged-off debt from big institutions have the funds and the contacts to have in place forward-flow contracts.

In Australia, there is currently no secondary debt purchasing market. The reason for this is often cited as being that lenders have in place prohibitions against purchasers on-selling portfolios to third parties as they have their brand and reputation to protect.

However there is actually no legal impediment to a secondary debt purchasing market in Australia. We now have sophisticated consumer protection and privacy laws in Australia (The new NCCP) and active watchdogs in the form of ASIC and the ACCC as well as the recent inception of the Australian Collectors and Debt buyers Association. The risk of abuse on the part of collectors has been obviated.

The benefits to all parties (lenders, primary and secondary buyers) are clear and it will be a win/win/win: There will be more investment and liquidity in the debt buying market enabling charge-off of more debt sooner and the development of niche areas of collection;
Without a secondary debt buying market, capital of primary buyers is locked up for nearly 6 years in some cases in order for them to achieve their collection targets. A secondary market will enable primary buyers to reach targets quickly and they can focus on new purchases and more efficient and expedient collections;
Smaller debt buyers can enter the market and hone their collection skills in the niche area of pursuing older debts;
Smaller players can purchase affordable parcels of debt thus opening up the market to new investment;
New businesses will emerge to service the growing industry as a clear need for brokers for secondary debt purchasing will emerge.

Our focus is primarily on buying non-performing secondary credit card debt. We do not say that debt buying is a get-rich quick proposition but if properly prepared and educated a very,very good return on investment can be achieved. Times are changing and now is a time of great opportunity, a perfect storm for debt buying.

Ultimately we will be fostering the creation of an open and competitive market for the secondary debt buying market where our ideas, procedures, concepts and processes will translate into an informative and educational model for other entities wishing to enter the market in credit card and other types of debt purchasing.

The main three groups who we see as potential secondary debt purchases are lawyers, investors and commercial agents. We will open a platform to introduce these new players to the market and take them through the full debt purchasing cycle and the various cogs in the industry wheel including:

1. How to review and analyse debt purchases;

2. How to utilise debt scoring protocol;

3. How and where to find debt to buy;

4. What to do with the debt after you have bought it (there are many options);

5. How to determine realistic performance expectations from your portfolios.

Our methodologies of collection encompass a premise of working with debtors. Our motto is that

“there are always options and that the only option that is not available is to do nothing.”

Within those parameters we will work with them responsibly to find a solution whilst treating them with dignity and respect.

We regularly work with debtors to solve their problems. For more information on our other services in this respect please click on the link below:

www.aussiedebtrescue.com