Up to a certain level (for the most part 500k although we believe the internal criteria set by the bank is more driven by the overall size of the business debt) the debt collection process is managed by a team in India and to a limited extent by a debt collection company called Metropolitan Collection Services which is in fact owned by HSBC.

Although we have seen sporadic use of external debt collection companies by HSBC, it is emerging that most new cases we are seeing are actually being managed by external debt collection companies such as Moorcroft and Wescot.

Time will tell as to whether this reflects a more long-term change in the debt collection policy of HSBC but since we deal with so many cases we are able to pick up these sorts of changes within a week of banks making such changes.

Time will also tell as to the long-term outcome of these processes but we see positive negotiated settlements both with the bank and the debt collection agencies, although the use of external agencies may create a greater focus on the end result by those agencies.

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