Debt Resolve Will Not Seek Further Portfolio Purchases

Online collection solution provider Debt Resolve, Inc. (AMEX: DRV) will no longer competitively bid on debt portfolios through its debt buying unit, DRV Capital, according to the company’s CEO.

Jim Burchetta, Debt Resolve’s co-chairman and CEO, told insideARM.com that DRV Capital will continue to exist but will only participate in purchasing portfolios with existing clients on a partnership basis. “Joint strategy buys will continue for DRV,” said Burchetta. “If we have a client, such as a collection agency or debt purchaser, who wants to partner on the buy, we will do it, and potentially take a small ownership interest in the portfolio.”

The strategy appeared to be a departure from DRV Capital’s focus. In January of this year, Debt Resolve announced that DRV had purchased two small portfolios after closing on a $20 million credit facility to finance portfolio purchases (“Debt Resolve Purchasing Arm Acquires First Debt Portfolios,” 1/11). But Burchetta said today that DRV Capital was never intended to compete with major debt purchasers.

“We acquired those portfolios to test our letter strategies and online settlement system,” said Burchetta. “We were never going to put ourselves into debt purchasing competition.”

Last week, rumors swirled that DRV Capital would be undergoing changes in top management. Burchetta would not confirm the rumors, but did say that any executive changes would be announced by the company.

Debt Resolve also announced Tuesday the formal expansion of its online debt collection system offerings in France. The company will be working with the assistance of Invest in France Agency North America for active support and assistance regarding location surveys, legal and tax advice, governmental regulations, at every stage of the launch process.