Why Is Share Price Tanking?, page-242

All I know is whats in the various articles say about it, but I'll make some comments.

Seems like a good business model - a capital light agency that collects on low hanging fruit with a 'friendly' digital approach via text messages and emails. Apparently it just gives back any debts it can't collect.

The fact that it could be quite low cost opens up the ability to help collect on small debts not currently serviced because it would be uneconomical, pretty good idea. In other words, it is growing the overall market for debt collection and offering a supposedly more ethical approach to existing debts which is the 'disruptive' part.

I'm a little cynical though, frankly why have a debt collection industry if all it takes are sending a few nice messages to a debtors phone to get them to pay? So, it sounds like they would only really be able to service 'higher quality' charged off debt. Not debts involving people actively avoiding their bills.

They claim the friendly approach really does convert more 'customers' to paying money back, fair enough. However, do most other companies start out in an agressive way, or is it only after repeated failed attempts? I supect the latter.

Don't know how big of an impact this company could have on CCP and whether CCP could respond fairly easily with a similar offering. CCP already offers systems which allow direct debtit and self serve payments, plus payment plan offers (these are the same functions on Indebted's website). However, it looks like Indebted is far more digitised in those areas and has the ability to serve at a lower cost which is a worry.

In terms of the ethical edge Indebted is going for, CCP is already the traditional debt collector with the 'lightest touch' in the industry, so I'm not sure how disruptive Indebted could be to CCP specifically.