1st Credit Losses 2009 and 2010

[Pinky69]

1st Credit have posted a £17.9 million loss for 2010, following on from a £72 million loss in 2009. The latest Plimsoll analysis of debt collection agencies show that most are making no profit at all and profit margins for those who are have dropped to 6% (they were 10% at the last analysis). When you consider corporation tax, shareholders and furnishing their loans, they are in a sad state. :rip2:
You naughty beagles - look what knowing your rights has done!!

[The Debt Star]

Re: 1st Credit Losses 2009 and 2010

Pink, their shoes will just be filled by another outfit like them. they're like the skeleton army in jason and the argonaughts - numerous & impossible to kill off.

[Pinky69]

Re: 1st Credit Losses 2009 and 2010

I am of the view that with more and more people knowing their rights, people simply not having money to pay them and the strict lending criteria now in force, the days of the DCAs are numbered in the medium to long term. About 100 companies are operating at a loss for the 2nd and 3rd year and that is affecting the others competing for contracts. The head of DLC recently complained that commission was too low. They used to aim for collecting 25% - big difference between that and 6% for those that are making any money at all. The Plimsoll analysis shows that most are making between 0 and 2%. Investors are not going to lose money and many investors have moved on to other things, the rest struggling to get their money back. In addition they have had to fork out millions in compliance teams after all the bad publicity they got. Litigation is also expensive for them so they have cut back on court cases and have lost quite a number - they can no longer just say anything in court because more and more people know their rights. 1st credit have said they are dependent on collections to pay back their loans. Looks as if the shoe is very much on the other foot and long may it continue. If consumers could get organised and all pay them £1 a month if they have a debt to pay, they would be out of business tomorrow. We can dream.

[Angry Cat]

Re: 1st Credit Losses 2009 and 2010

http://www.credittoday.co.uk/news/ne....cfm?news=2240