PR - Collection House Announces Forward Flow Agreement with Two Banks

Leading Australian receivables manager Collection House Limited Monday announced that it had reached agreement on two significant forward flow agreements, one being with an Australian bank and the other being an extension of an existing agreement with a major financial institution.

Managing Director and CEO Tony Aveling said the face value of these new forward-flow agreements, comprising 180 day credit card, revolving credit and personal loan debts, is likely to exceed $225 million a year.

"Collection House is delighted to be forging a new business relationship with this significant banking partner and at the same time strengthening our alliance with an existing valued client,” Aveling said. "These are important agreements which confirm Collection House’s re-emergence as a leader and partner of choice in the growing purchased debt market.

"We place great emphasis on ethical collections, compliance and brand protection, all of which we believe will be of benefit to our new and existing partners."

The purchases follow the company’s strategic decision last year to divest a number of non-core assets and reinvest the proceeds in new purchased debt opportunities offering greater returns to shareholders.

Aveling said the new agreements, in conjunction with other transactions, would increase expected debt purchases during the 2007-08 financial year from the $49 million previously announced, to more than $49 million. This compares with $26 million for the 2006-07 financial year.