RBS offloads consumer loans to financial services firm Paragon

British first mortgage and consumer finance firm Paragon Group Of Companies Plc (LON:PAG) said on Monday it had paid GBP25,000 (USD40,000/EUR31,000) to buy a portfolio of unsecured consumer loans from The Royal Bank of Scotland Plc (LON:RBS).

The transaction was conducted through Paragon’s unit Idem Capital Securities under a forward flow agreement and is seen to build on its earnings this financial year.

Paragon said it would use own cash reserves to finance the deal. The company will remain on the lookout for further buy opportunities under the forward flow accord going forward.

In October 2011, Paragon bought GBP43.2m worth of unsecured consumer loans from the UK lender and later announced several similar portfolio purchases.

Paragon, based in Solihull, engages in first mortgage and consumer finance businesses in the UK. The company offers buy-to-let and owner-occupied mortgage assets, asset investment and administration, vehicle fleet management, unsecured lending, property services, mortgage brokering, loan and vehicle finance and surveyors and property consulting.

Last month, the company bought a domestic consumer credit card receivables portfolio from MBNA Europe Bank Limited for up to GBP16.9m. The deal was preceded by a GBP55.7m acquisition of closed UK consumer credit card receivables from the bank in December.