Views on CCP Share Price, page-33

I had not thought much on this matter until I read your post. Resorting to Google soon informed me that the statutoery six-year limit commences from the date of the debtor's last payment, or last letter to the effect that the debtor admits the debt. I'll not comment on when the 6-year period starts if neither of these two events occurs, other than to say that in most of such cases there would be something that a court would accept as evidence that the debt existed. I would imagine that an astute debt collector might wheedle a small payment, or a letter asking for a morotorium (a delay), from the client to establish a later start date for the 6-year period.

There would be a delay from that start date to when CCP is likely to be empowered to take action, and individual PDLs probably have a fairly narrow range of start dates. Lost time occasioning a shorter available collection window would be factored into the price CCP offers for a PDL. Acquiring a PDL is unlikely to restart the 6-year period, because the debtor is not a party to the debt acquisition agreement.

I do not know what the typical available collection window is for PDLs, but it is probably about five years. I also do not know how accurately CCP calibrates its PDL amortisation to that window. CCP in the interest of conservatism might amortise over a shorter window, but one that the relevant tax authorities would accept. I touched on this topic mentioning a New Zealand tax office link – see my post 37283081. I assume that CCP rarely, or never, buys debt that has an available collection window of less than five years.

This is not authoritative information, but it may help you. Once you have enough information to make patent what you still need to know, you could email CCP and ask.