Robinson Way Ltd. to Resume Debt Portfolio Purchases

A British debt collection company, Robinson Way Ltd, previously owned by London Scottish Bank, which collapsed lately, re-emerged on the UK market of debt collectors. According to the Credit Services Association, country’s body for debt recovery agencies, the major challenge Robinson Way Ltd. now faces is the availability of funds that the company needs to purchase new debt portfolios. In the opinion of Mr. Sean Feast, Credit Services Association’s spokesman, debt collection firms that do have enough funds to buy debt portfolios can develop successfully, while others might face difficulties in fund raising. Robinson Way Ltd. management, Mr. Graham Prosser and Mr. Bill Murray in particular, claim that several UK banks have already expressed their willingness to fund the purchase of fresh debt portfolios by the company. Mr. Prosser said that the new agreements with banks make it possible for Robinson Way Ltd. to reinvest into the expansion of debt portfolios, which is crucial to the firm’s development as, in his opinion, owning debts is more profitable than working on a commission basis. Let us remind that last November London Scottish Bank collapsed, which resulted in a suspended borrowing ability of Robinson Way Ltd. In the past 11 months, the company managed to collect £53.5 million, which compares to £69 million last year; firm’s management explains the decline by its inability to buy new debt portfolios. Despite the decline, however, the firm remained profitable due to “goodwill of its clients,” Mr. Prosser said. Even though Robinson Way Ltd. was unable to purchase new debt portfolios, it successfully collected debts on behalf of banks, credit card companies, and other clients, which resulted in company being in the top 10 of UK debt collectors and debt purchasers.