Certain levels of defaults on unsecured consumer debts can be expected to occur throughout the credit cycle, as originators tend to design their loan pricing models and underwriting criteria assuming a level of default.

By passing the debt on to us, our clients, who are typically financial services institutions, are able to focus on their core activity of lending, safe in the knowledge their customers are in good hands. Our ultimate aim is to help our customers clear their debts and rehabilitate their credit file, which in turn, allows them to gain access to more affordable main-stream financial products.

Customers with defaulted debt come from a range of backgrounds and income brackets, but the majority of them have, at some point, been granted credit by a mainstream lender on which they subsequently defaulted.

Debt purchasers such as Arrow Global seek to understand customers’ situations and work with them to agree an affordable repayment plan, often over a longer period than the original creditor would have been willing to agree.

The size of the European debt purchase market has grown significantly in recent years. Industry reports from Deloitte and PwC estimate the total value of debt sold in the European market in 2015 at between approximately €105 billion and €160 billion, significantly up from the €46 billion estimated sold in Europe in 2012.