I am pretty sure all of the key players buy credit impaired debt...

I am pretty sure all of the key players buy credit impaired debt from the banks. The most important thing, and the main thing that can't be recovered from in this space is paying too much initially. The banks will be keen to offload unsecured lending post 180days past due within a reasonable time frame. They simply get no capital relief for such exposures (capital costs money...) and if they can make a quick buck and pass the exposure on to a company specialising in collection they will.

They do care however about reputation so a collector with a good service offering may obtain a more favourable price in negotiation than another player. It's not just about price offered in the secondary tender market.

Banks lose the most on credit cards and then unsecured PLs. That is what they traditionally off load and often via a long term forward flow where they offload certain amounts for a period of time at an agreed price. Managing these exposures is very different to telco, utility and payday loans. Some players are in all and some avoid.

Downturn is a double edge sword, maybe good buying opportunities, but if the retail creditor is experiencing economic downturn then the existing book and new purchase may be harder to collect.

Just some background for others to digest if not familiar.