October 16th, 2020.
Banks may outsource repayment of Bounce Back Loans gone bad to external debt collectors because the task will prove too overwhelming inhouse.The government itself estimates that nearly two-thirds of Bounce Back Loans may never be repaid, costing the Treasury £26bn.
The government and the banks are talking about establishing a panel of debt collection agencies that would all follow an agreed code of practice.
According to the Times, government officials have already contacted debt collection agencies, including Arrow Global, to see whether they would chase unpaid Bounce Back Loans. Only when the agency has exhausted chasing repayment would the bank then claim on the 100-per-cent state guarantee.
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