Secure Trust Bank offloads loss making debt purchase arm

David McCreadie

Secure Trust Bank (STB) has offloaded its loss-making Debt Managers (Services) businesses to Intrum UK Finance.

The move means STB will leave the debt purchase market. The portfolio comprises around 650,000 customer loans acquired from third parties and STB. Intrum will acquire the rights of DMS as lender to collect payments due under the loans within the portfolio.

The value of the deal is at yet undisclosed.

DMS has made a combined loss of £5.5m in the last two years.

David McCreadie, chief executive officer of Secure Trust Bank, said: “The sale is in line with STB’s strategy to simplify the croup and focus on businesses that have the strongest prospects for delivering sustainable and profitable medium to long-term growth as outlined at our Capital Markets Day in November 2021. Within these businesses, our key priority is to help more customers, extend our product offerings and further enhance our digital capabilities. The estimated net benefit and capital released in FY2022 from this sale will facilitate swifter progress in these areas.

“I would like to thank all our colleagues in DMS in advance for their continued support of our customers as loans are transferred to Intrum. We consider that Intrum has an approach, policies and controls designed to ensure that these customers will continue to be treated fairly.”

Click here to sign up to receive our new South West business news...
Close