Experts in Debt-Recovery.
Specialist Advisors on Credit and Distressed Debt

Default Loan Book (September 2011 - February 2012)


For the past two years we have been assisting one of our blue chip clients to collect on an early-stage arrear loan book. Before this mandate, late-stage default collections were without doubt our speciality. For this project we adapted our collections approach significantly and formulated a strategy to specifically address early stage arrear debt (usually one payment in arrear) with a high monthly repayment value.


Champion Challenge

From the start, we encouraged our client to publish monthly comparative results between us and our competitors. Our reasoning behind this was that:

  • We believed we could excel in early stage collections, as we had done with late stage / write-off collections up until then; and
  • We believed it to be in the best interest of our client that results be published regularly, in order to encourage competitiveness and drive performance.


Our Competitors

Our competitors in this project are the biggest debt collection companies in South Africa.

Competitor One is a highly reputable firm that specialises in contingency fee collections and has (from available information) a total capacity of approximately 4 000 call centre seats;

Competitor Two is an established collections firm which is a becoming a prominent player in the debt purchasing market;

Competitor Three is one of the best known collection companies in the country, and has for a long time been a significant player in the debt purchasing market.


Our Performance

From the start we out-performed our competitors. When our client started publishing the monthly comparative collection results, the performance gap between us and our competitors closed to a large extent due to our competitors’ improved performance, and we were in fact beaten on occasion.

However, as the mandate matured and we gained a thorough understanding of the debt, we started to out-perform again. As monthly performance comparisons can be erratic, due to several variables, the best way to assess performance is by aggregating results over an extended period of time.

For the purpose of this case study, we aggregated performance for the six months from September 2011 to February 2012 (March 2012 data was not yet available at the time of this study). Performance is defined by aggregated monthly collections as a percentage of aggregated arrear debt handed over.

Percentage of Arrears Collected by Collection Company (6 months ended Feb 2012)



These are actual results compiled from information supplied by our client, and are independently verifiable. This is just one example of many where we have raised the benchmark in terms of performance and client service.

As our client, your best interests will always be our number one concern