Transcom, the European credit management provider is to jointly purchase European debt portfolios with Arrow Global, making it harder for absconders to escape their debts.
Arrow Global has already purchased more than $17bn in receivables.
Transcom is Europe’s largest collections company by geographic footprint.
The deal with Arrow Global will focus on UK credit card and loan portfolios, including debt created due to credit card and loan accounts that originated in the UK and subsequently were written off and absconded accounts, where account holders have left the UK and currently reside in other countries.
Transcom’s European debt tracing collections capability and its in-house litigation services teamed with the new European Enforcement Orders, enables Transcom to become the first UK debt collections agency able to trace debtors, obtain a UK court judgement, transfer that judgement to the absconder’s country and collect on that debt.
This means that UK citizens will no longer be able to flee the UK to abandon their debt responsibilities free from pursuit and free from the law.
John Marston, chair of the High Court Enforcement Association and expert in the Council of Europe says: “For too long now, collections of absconded debt has been hindered by a lack of legislation and collections capability.
“By leveraging the new legislation, Transcom will be able to effectively tackle a very serious problem. We fully support Transcom’s approach.”
Mike Purvis, UK managing director of Transcom, says: “Our service will address the need to reduce absconder debt.
“No other company in this sector has the geographical coverage and breadth of collections capability to work seamlessly across multiple borders.”