Debt Management (Commercial & Consumer)
UK Market Report 2010
Market Research Report

Debt Management (Commercial & Consumer) UK Market Report 2010 Market Research Report

Executive Summary

As of the end of 2009, the total amount of UK bank and building society lending outstanding to individuals and businesses stood at £2,452.09bn, a rise of 2.8% on 2008. Between 2005 and 2009, the total amount of UK bank and building society lending outstanding to individuals and businesses rose by 48.5%.

This Key Note Market Report covers lending to individuals, including consumer credit and loans secured on dwellings; and corporate bodies, including other financial corporations, non-financial corporations, unincorporated businesses and non-profit-making organisations (NPOs). In 2009, the largest sector of the market was loans to other financial institutions. Loans to other financial institutions was also the fastest-growing sector between 2005 and 2009.

In September 2010, the Office of Fair Trading (OFT) informed 129 debt management firms that they faced losing their consumer credit licences unless they took immediate action regarding compliance with OFT debt management guidance. These formal warnings followed an OFT review examining the debt management sector which found widespread problems, including the failure of companies to disclose the extent of their fees to clients and the employment by some debt management companies of incompetent 'frontline' advisers, who offered poor advice to customers. Misleading advertising campaigns by some debt management companies were also of concern.

The Department for Business, Innovation and Skills (BIS) supports debt advice services for consumers in England and Wales who have problems with debt. The support provided by the BIS covers both free face-to-face advice, delivered exclusively through a project working with third sector providers, such as Citizens Advice; and National Debtline, a telephone advice line funded by both the Government and the private sector. Following the economic downturn, capacity has not kept pace with demand and the providers of the free face-to-face debt advice service have reported large increases in the number of clients contacting them. This has resulted in some of the individual advice agencies being unable to take new clients on, while others had waiting times of 4 weeks or more.

With levels of unemployment currently extremely high in the UK in 2010 and further increases forecast in 2011, demand for the services offered by debt-management companies should also remain high. In addition, the possibility of higher interest rates and the impact of such rises on heavily indebted consumers is expected to lead to increases in consumers seeking debt management assistance. Key Note forecasts that the total amount of bank and building society lending outstanding to individuals and businesses will increase further in 2010, thus maintaining the UK's position as one of Europe's most heavily indebted countries.

• Foreword
• Executive Summary
• Market Definition
• Report Coverage
  • Consumer Credit Services
  • Commercial Credit Services
• Market Sectors
  • Lending To Individuals
  • Other Lending
• Market Trends
  • Oft Warns Debt Management Companies
  • Household Debt Continues To Rise
  • Individual Voluntary Arrangements
  • Small Percentage of Adults Worry about Debt
• Economic Trends
  • Gross Domestic Product
  • Unemployment
  • Inflation
  • Population
  • Household Disposable Income
• Market Position
  • The Uk
  • Overseas
  • Market Size
• The Total Market
• by Market Sector
  • Lending To Individuals
  • Other Lending
  • Industry Background
• Recent History
• Number of Companies
• Employment
• Regional Variations in The Marketplace
  • Mortgage Possession Notices
  • Individual Insolvencies
  • Company Liquidations
• Distribution
  • How Robust Is The Market?
• Legislation
  • The Oft's Debt Management Guidance
  • An Individual Voluntary Arrangement
  • Debt Management Plans
  • Insolvency Companies
  • The Enterprise Act
• Key Trade Associations
  • Council of Mortgage Lenders
  • Credit Services Association
  • Debt Management Standards Association
  • Debt Resolution Forum
  • Federation of EUropean National Collection Associations
  • Foundation for Credit Counselling
  • The Institute of Credit Management
  • Competitor Analysis
• The Marketplace
• Market Leaders
  • Baines and Ernst Ltd
  • Churchwood Financial Ltd
  • Cleardebt Group Plc
  • Debt Advisory Line Ltd
  • Fairpoint Group Plc
  • Gregory Pennington Ltd
  • Harrington Brooks (Accountants) Ltd
  • Invocas Group Plc
  • Moneyplus Group Ltd
  • Payplan Ltd
  • Wkd Uk Ltd
• Other Companies
  • Allied International Credit (Uk) Ltd
  • Bcw Group Plc
  • Controlaccount Plc
  • Intrum Justitia Ltd
  • Marston Group Ltd
  • Philips Collection Services Ltd
  • Regal Credit Consultants Ltd
• Marketing Activity
  • Exhibitions and Conferences
  • Strengths, Weaknesses, Opportunities and Threats
• Strengths
• Weaknesses
• Opportunities
• Threats
  • Buying Behaviour
  • Loans
• Attitudes Towards Credit and Debt
  • Current Issues
• Government
  • Office of Fair Trading Cracks down on Debt Management Sector
  • Response of Industry Trade Bodies To Office of Fair Trading Review
  • Office of Fair Trading's Guidelines on Responsible Lending
  • Helping over-Indebted Consumers
  • Insolvency Reform Plans Dropped
• Market Trends
  • Debt Management Plan Providers Earn Income of over £250m
  • Northern Rock Announces Interest Freeze
  • Crackdown on 'Free Debt Management' Advertising
• Consumer Trends
  • Steady Rise in Debtors Who Apply for Individual Voluntary Arrangements
  • Council of Mortgage Lenders Report Decline in Arrears and Repossessions
  • Jobseeker Allowance Claimers Are Often Trapped by Large Debts
  • Half of Self Employed Debtors Unable To Repay Debts
• Legislation
  • Debt Relief Orders
  • The Global Market
• Global Comparisons
  • The US
  • EUrope
  • Forecasts
• The Economy
  • Population
  • Gross Domestic Product
  • Inflation
  • Unemployment
  • Total Amount of Lending Outstanding
  • Forecast Household Borrowing and Debt
  • Individual Insolvencies in The Uk
• Forecasts To
• Future Trends
  • Office of Fair Trading Warning
  • Continuing Switch Towards Iva's
  • Consolidation Activity
  • More Responsibility for Private Providers If Bis Funding Ends
  • Company Profiles
• Introduction
• Definitions
  • Turnover (Sales)
  • Pre-Tax Profit
  • Profit Margin
  • Average Remuneration
  • Sales per Employee
• Further Information
• Baines and Ernst Ltd
  • Previous Name(S) and Date(S) of Change
  • Principal Activities
  • Sic Codes
  • Structure
  • Recent Developments
• Financial Profile
  • Sales
  • Profits
  • Employees
  • Balance Sheet/Ratios
• Churchwood Financial Ltd
  • Principal Activities
  • Sic Codes
  • Structure
  • Recent Developments
• Financial Profile
  • Sales
  • Profits
  • Employees
  • Balance Sheet/Ratios
• Cleardebt Group Plc
  • Previous Name(S) and Date(S) of Change
  • Principal Activities
  • Sic Codes
  • Structure
  • Recent Developments
• Financial Profile
  • Sales
  • Profits
  • Employees
  • Balance Sheet/Ratios
• Fairpoint Group Plc
  • Previous Name(S) and Date(S) of Change
  • Principal Activities
  • Sic Codes
  • Structure
  • Recent Developments
• Financial Profile
  • Sales
  • Profits
  • Employees
  • Balance Sheet/Ratios
• Gregory Pennington Ltd
  • Principal Activities
  • Sic Codes
  • Structure
  • Recent Developments
• Financial Profile
  • Sales
  • Profits
  • Employees
  • Balance Sheet/Ratios
• Harrington Brooks (Accountants) Ltd
  • Previous Name(S) and Date(S) of Change
  • Principal Activities
  • Sic Codes
  • Structure
  • Recent Developments
• Financial Profile
  • Sales
  • Profits
  • Employees
  • Balance Sheet/Ratios
• Intrum Justitia Ltd
  • Previous Name(S) and Date(S) of Change
  • Principal Activities
  • Sic Codes
  • Structure
  • Recent Developments
• Financial Profile
  • Sales
  • Profits
  • Employees
  • Balance Sheet/Ratios
• Invocas Group Plc
  • Previous Name(S) and Date(S) of Change
  • Principal Activities
  • Sic Codes
  • Structure
  • Recent Developments
• Financial Profile
  • Sales
  • Profits
  • Employees
  • Balance Sheet/Ratios
• Moneyplus Group Ltd
  • Previous Name(S) and Date(S) of Change
  • Principal Activities
  • Structure
  • Recent Developments
• Financial Profile
  • Sales
  • Profits
  • Employees
  • Balance Sheet/Ratios
• Wkd Uk Ltd
  • Principal Activities
  • Sic Codes
  • Structure
  • Recent Developments
• Financial Profile
  • Sales
  • Profits
  • Employees
  • Balance Sheet/Ratios
  • Further Sources
  • Associations
  • Publications
  • General Sources
  • Government Sources
  • Other Sources
  • Key Note Sources
  • Key Note Ltd
  • Understanding Tgi Data
  • Number, Profile, Penetration
  • Social Grade
  • Standard Region
  • Key Note Research
  • The Key Note Range of Reports