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Debt Collection Agency Warns Of Rising Debt Levels

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The country’s largest debt collection company has warned that rising interest rates will lead to a significant rise in retail and corporate debt levels.

Intrum Justitia said it won 150,000 new cases of debt recovery in Ireland in 2005 and expects its caseload to increase by 15 per cent this year. The rate of increase is forecast to accelerate in 2007 as interest rates continue to rise.

‘‘The growth in assignments remains lower than the overall rapid 30 per cent growth in credit,” said Nicholas Biggam, managing director at Intrum.

‘‘A combination of rising interest rates and unemployment would certainly lead to a potentially dramatic increase in payment problems.”

Intrum said that the average retail debt case it handled in Ireland had risen to between €400 and €700. The average credit card debt assigned to it by credit card companies and banks has soared to between €2,000 and €4,000.

Intrum also said that the average credit card balances on cases it handled had ballooned by 68 per cent in four years, compared with an increase of 45 per cent rise in all credit card balances in Ireland over the same period.

Irish companies remain the most reluctant in Europe to outsource their debt to debt recovery agencies. Legislation that makes companies rather than non-payers liable for the cost of non-payment is hindering Irish companies from collecting debt, Biggam said.


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  • 301 Brexit, House prices and Summer 2020

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      • down 5% +
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