LEADING INDEPENDENT FRENCH COLLECTION SERVICES

Still a confidential market only a few years ago, the purchase of bank civil debts is gradually taking shape. Since its creation in 1993 Credirec has been a reference actor in the field of the amiable recovery of such debts. In all, since its launch, the group has acquired or managed more than one million debts with a nominal value of more than €3 billion.

Its customers? Mostly specialised lending institutions (property lending, consumer credit, etc.), subsidiaries of banks or in the large-scale distribution sector, and even the captive lenders of carmakers. From statistical analyses of the studied files (by a team of 4 mathematicians) to collections (more than 150 people distributed between Paris, Nantes and Pau) and including investigation (50 private investigators, approved by the Prefecture), a complete and qualitative chain has been set up in order to succeed with Credirec’s mission. This activity takes place in three steps: the response to invitations to tender (hence the importance of the scoring / pricing prepared by the statisticians), the valuation of the portfolio (clearing and qualification of the data files) and recovery (amiably in 90% of the cases). An in-house training centre provides the group’s employees with six months of continuing training, given that the activity requires a certain knowledge of the law, but also psychology, etc.

2010 turnover : 37 million euros

www.credirec.com

Nathalie Lameyre,
Chief Executive

"Credirec will benefit from this current pick-up in the outsourcing of debt management on the market, for which our company is perceived as one of the leaders. We participate in a growing number of bids and, as a result, aim to double the number of portfolios we manage over the next three to four years"

2010 activity
In line with previous years, in 2010, Credirec benefited from the growing need of banks and credit institutions to outsource some of their out-of-court collection of individual debts, in particular on car and consumer loans.

The company confirmed its status as leader in the servicing business (debt collection for third parties), posting market share of about 60%. The volume of debts sold to Credirec by banks was lower than in 2008 and 2009, years that were very favourable for outsourcing and due to the crisis. Nevertheless, the company observes that some institutions are again thinking debt selling.

Credirec took advantage of the favourable market conditions over the period to increase its share in its mutual securitisation fund to 100% (until then 50%-owned and consolidated). This type of investment vehicle will continue to be used as an alternative financial tool.

Servicing (managing outsourced debt collection) remained stable, as in previous years.

Overall, the year saw a sharp increase in productivity: up 20% per person! This growth is notably linked to the high stability of the teams, the development of external partners (such as bailiffs) and the return to a structure whereby employees are specialised by product. The increase of old "loss" debts also prompted Credirec to strengthen its team of investigators.