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Collection House in Administration

#finances #economy #heisesays
Should we be worried when the debt collectors are going under?

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  1. Collection House was a mongrel organisation, my first hand experience. I was proven to be 100% correct and they were pig headed and wrong. No sorry, no reasons why – glad to see them go under, well deserved.

  2. Mercantile's such as Collection House have relied on buying debt at a discount. In the modern world of Banking, Electricity, Gas, Insurance & Finance, these industries have regulation about debt. Energy companies must follow the hardship regimen, so cannot sell their debt. The Mercantiles are fishing for car debt, store debt and slim pickings.

  3. I wonder how much debt-bonded "business" (products and services) they intentionally rung up AFTER they knew they were in serious trouble? One way would be to see if their "activities" changed in such a way to make it impossible for service providers to satisfy contractual obligations thus either avoiding monthly payments or imposing penalties on the providers (hint) – like not reporting tolerable faults until it is too late.

    And now they need PROTECTION from the big-bad creditors?

    When they purchase debt at cents in the dollar from frustrated creditors (because the creditors do not know how to wield the uniform civil procedure rules themselves) do they NOT become the CREDITOR for that debt?

    Oh, the irony!

    If you play in a casino you gonna loose sooner or later.

  4. This sounds like they bought the debt and tried to collect the debt + fees and find they could not get the returns required to sustain the business.
    Thus a debt collection agency is just like any other business and failed.

  5. Trading insolvent for two years with govt approval. I wonder how much taxpayer funded jobkeeper funds they received during Covid? Scomo just poured money down the drain

  6. Debt collectors only exist because people who 'have money' won't pay their debts, even though they can. Yet debt collectors harass those who have absolutely nothing left and are vulnerable to their bullying. You can't get blood out of a stone. They are "the scum of the Earth", and like bounty hunters, they deserve to be shot on sight.

  7. I know a firm who helped people negotiate with the banks when they were in arrears on their mortgages.

    Over lockdown they had no work. Moreover the owner said after lovkdown the banks were still being pretty relaxed about chasing arrears.

    The firm has gone broke

  8. I had shares in CLH a few years ago. Mike Kemp from the Barefoot Investor was a major shareholder at the time. Glad I sold when I did!

  9. When a debt collection company goes into administration, you have to worry. That's a clear indication people are unable to pay their debts. Imagine what's coming with all the people out there that have overextended themselves using Buy Now, Pay Later services like Afterpay? Geez, things are going downhill very fast. The global polycrisis has begun.

  10. The surprising reason why this company collapsed, is that Aussies have become insanely rich from covid.
    *excludes airline staff.
    Basically no one is going broke anymore.
    *except airline staff.

  11. I have debt collectors coming at me all over. what happened I wont bore you with but I tell them I'm on disability so go talk to the Rothchild's since they have 500 trillion.

  12. A random thought… did the debt collection business go on hold during covid lockdowns? Did that impact their business greatly? If you can't collect debts then you have no business do you?

  13. Times will get much tougher now. The inflation won't go away with a little bit higher cash rate, but it will collapse the part of the economy that relies on cheap money. So much more unemployment and far less tax revenue for the government – you can't press blood from a stone.

  14. If debt collectors buy the debt to collect from the client, and now they can't collect it then does that debt get effectively wiped out (the person owing doesn't have to pay)?

  15. Collection House was making money from Lion Finance (Purchased Debt) The prior CEO borrowed large amounts of money to buy over valued Debt Ledgers with inflated future earnings. Once the banks got a hold of this information they advised CLH that certain loan agreements were breached and asked for the loan to be paid back which CLH could not. So CLH sold the Debt Ledgers at a discount to Credit Corp and paid most of the Loan off. This lost CLH there major income source. CLH also had high corporate rent they were locked into for a 10 year lease which was draining there cash which they no longer needed as Lion finance and other back office staff were made redundant during 2019. This was the main catalyst that made CLH go into Administration. I know this since I was a shareholder for CLH that sold most of my Stock a couple of months ago.

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