US Debt Buyer to Offer Perspective at UK ARM Conference

When the eighth annual Collections and Debt Sale & Purchase Conference kicks off Thursday in central England, a veteran of the U.S. debt purchasing industry will be giving his perspective on an industry that he feels is ripe for expansion.

Mike Chiodo, CEO of Pennsylvania-based APM Financial Solutions, will be chairing the debt sale & purchase track of the conference. He told insideARM that he hopes he can offer some advice to the international debt buying community.

“There are a lot of things going on the in U.S. market,” said Chiodo. “The resale market is dead and the legal collection strategy is strained because debtors have no equity in their homes.” But with that said, Chiodo says it’s “a great time to be a debt buyer in the U.S.”

Chiodo has the experience to speak as an authority on the issue. Prior to APM, he worked with NCO Portfolio Management and then with debt broker Garnet Capital Advisors.

He explained that while U.K. debt buying lags the U.S. in terms of development, it is still a very mature market. One example Chiodo gave was due diligence. Typically, U.K. buyers conduct their due diligence in person. Also, a robust secondary market has not developed overseas the way it has over here.

But as the market matures, Chiodo says international buyers can learn from some of the mistakes and successes of their American counterparts. “Collection strategies [among U.K. debt purchasers] are mostly stagnant across placement levels,” he notes. “For example, they treat third placements as a customer service oriented task.” U.K. buyers should probably look at successful collection strategies employed in the U.S. for their more advanced debt.

Forward flows are also causing strain among U.S. debt buyers. Deals signed months ago are now haunting buyers as prices drop and the economy stagnates. Spot buying is becoming the norm, he said.

But he also feels that there is opportunity in the U.S. for international buyers. “They need to know that debt can be had here for very good prices.”