Rights to £20m of debt switches hands after a collections firm fell into administration

If you outsource collections, you are not just outsourcing phone calls and letters. You are outsourcing a critical part of your cashflow engine. This week’s story is a perfect case study: a collections firm entered administration, and the rights to collect more than £20m of debt have now been sold to another agency. So what happens next, and what should UK businesses do immediately to protect recoveries and avoid compliance headaches?

What happened

* Surrey-based Redwood Collections acquired the right to collect more than £20m of debt from Essex-based Scott and Mears Credit Services, which entered administration in September 2025.

* The sale was managed by Begbies Traynor and is expected to support future collections for 1 ...