European Survey FENCA

Number of respondents Austria 0 Belgium 0 Czech Republic 4 France 11 Germany 103 Greece 0 Italy 30 Netherlands 0 Norway 24 Poland 4 Portugal 4 Spain 15 Sweden 2 Switzerland 5 Ukraine 0 United Kingdom Austria 1 Belgium 6 Czech Republic 8 France 19 Germany 43 Greece 4 Italy 21 Netherlands 9 Norway 22 Poland 20 Portugal 17 Spain 23 Sweden 5 Switzerland 10 Ukraine 1 United Kingdom 18

3 Number of companies trading vs. Number of years on the market In 2006 the percentage of companies aged between 5 and 10 years constituted majority of answers. In 2007 we received more answers from Eastern Europe, less from Central Europe, so the proportion moved in the direction of companies with a longer experience on the market.

4 Area of trading In the comparison to 2006, more companies are moving towards national and international trading, passing boundaries of the local market.

5 Factors affecting the business Similarly to 2006, in 2007 the same factors are affecting collection business. Constantly 28% of respondents complain on the existing legislation. The percentage of companies complaining on the difficulties to find the suitable staff grew from 16 to 20%. Reluctance by potential clients to use collection agencies diminished slightly, what may indicate growing trust towards debt collectors.

6 Demand in debt servicing industry Despite of the dominating number of answers in 2006 that the demand on the services of debt collection industry remains stable, the overall trend is the slow and steady growth of demand. From the responding group in % of responders stated that the demand on the debt servicing industry slightly increased or increased, meanwhile in 2007 this group constituted 70.8%.

7 Competition on the market In 2006 as well as in 2007 the competition on the market is estimated as continuously increasing. Growing competition means competitive commissions for customers and higher quality of services. In % of respondents estimated that the competition is growing, contra 74% in 2007.

8 Average commission Decreasing commission is directly linked with growing competition. *in 2006 option “remains unchanged” was not applied

9 Client pressure Growing client pressure is directly linked with growing competition and requiring high quality services for a competitive price.

10 Number of customers and amount recovered In 2006 the average number of customers was 426 (per country) with the total average value recovered of € (per country). In 2007 the average number of customers was 881, with the total value recovered of € (per country).

11 Types of debt collected in 2007 Type of debt collected varies from country to country. There is a significant share of consumer debt in the type of debt collected; depending of the country consumer debt constitutes between 45% and 60% of the total debt collected. Exceptionally, there is lower level of the consumer debt in Poland and UK, what can be explained by an important role of a bailiff in collections of such debts.

12 Debt: number of cases in 2007

13 Debt: number of cases in the comparison to 2006 The number of dossiers in the comparison to the previous year is slowly growing; what signifies a steady development of the industry.

14 The average recovery rate per country was on the level of 28% Consumer debt collected and recovered in 2007

15 The average recovery rate per country was on the level of 45% Commercial debt collected and recovered in 2007

16 The average recovery rate per country was on the level of 27% Purchased debt collected and recovered in 2007

17 The average recovery rate per country was on the level of 44% International consumer debt collected and recovered in 2007

18 The average recovery rate per country was on the level of 37% International commercial debt collected and recovered in 2007

19 The average recovery rate per country was on the level of 60% International purchased debt collected and recovered in 2007

20 Number of tracing investigations in 2006 and 2007 Tracing investigations are specific for particular countries. The highest level of tracing investigations is performed in Portugal, Spain and United Kingdom (data from 2007); what can be indirectly linked with the delays in payments and payment avoidance.

21 Debt purchase: value and number of cases Since years United Kingdom occupies place no 1 considering the value of a debt purchased, especially because of the strong position of the Debt Buyers and Sellers Group.

22 Debt purchase: comparison to the previous year Over 60% of principal players of the market of debt purchase declare that the number of dossiers is steadily growing. The branch is still in the process of development and consecutive years will influence directions of its growing.

23 Additional services rendered by debt collection companies The most common additional services rendered by collection companies are: court procedures, business reports, tracing and credit reports.