We reported in January that Just Cashflow plc (JCF) went into administration December 2022 and would come back on how this may change their approach to debt collection on personal guarantees.
Well, things have changed very little; they still use their internal team for collections and the same firms of solicitors including John Morse Solicitors. So, on the collection side, it is business as usual for JCF, the process of which more or less follows similar lines as most secondary lenders to businesses who purely rely on PGs to secure the monies they lend.
An influence on this is no doubt due to an emerging further secondary market that has developed during COVID to buy up delinquent personal guarantee debt by hedge funds (Azzurro Associates who purchase a significant amount of this type of debt is owned by an American hedge fund), with the aim to secure the liability on a property. Although we have seen little sell off of such debts by JCF themselves, such a market provides for an easy eventual out for the administrators in the future. Whether this appetite will continue remains to be seen.
