Payday Lenders Turning to Selling Unpaid Loans, Rather than Sending to Collections
Payday (Cash Advance) loans are booming, but so is the rate these loans are defaulting. Lenders knew of only two alternatives: write it off or send to collection...but now they are turning to selling these defaulted loans.
(PRWEB) December 5, 2005 -- The Payday loan industry has experienced unprecedented growth recently and now these lenders have a more effective tool to recoup losses from defaulted debtors. Behind the success of this newly popular service is the purchasing specialist Gaintner Dugan Enterprises LLC (GDEdebt.com). Payday loan companies are quickly realizing the many benefits offered through selling their distressed loans.
Debtors defaulting on their loans are just part of doing business as a Payday loan owner. Priority is trying to minimize this occurrence, but owners realize that offering loans with such high interest rates comes with some unwanted disadvantages.
“We offered a service to an industry that needed an alternative and the response has been tremendous. Factoring receivables and purchasing distressed debt is not new, but it was not readily available to this industry,” says Brian Gaintner, co-founder of Gaintner Dugan Enterprises LLC.
There are only a handful of agencies that specialize in Payday loan debt collections and even less that produce consistent returns. Payday loan debt selling allows the lender to smooth cash flows and quickly liquidate their debt portfolios into cash.
“The truth is that we get most of our customers due to the frustration they have experienced in the past. Collection agencies take months to remit back collections, customer service if often lacking, and the return on their debt portfolio is minimal. Our customers love seeing a substantial check up-front so they can move on to running their core operations,” says Willie Dugan of GDE.
Lenders are now seeing their profit margins increase, particularly for customers of Gaintner Dugan Enterprises LLC.
About Gaintner Dugan Enterprises LLC:
Gaintner Dugan Enterprises LLC is a debt purchasing firm specializing in the Payday, Cash Advance, and short-term loan industries. GDE purchases new monthly unpaid loans, older unpaid loans that have not been touched, and balances collection agencies previously were not able to collect.
For more information, please visit:
http://www.GDEdebt.com
Media Contact:
Brian Gaintner
602-615-0657
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