National Loan Exchange Launches State Debt Buying Program

National Loan Exchange, Inc. (NLEX), a provider of technology-driven debt brokering services, yesterday announced the launch of a debt purchasing program for state and regional buyers.

The program allows state buyers to bid on portfolios of debt that NLEX has prepared and separated by state, segmented from large national pools offered directly by banks and other creditors.  After being listed for about six days for bidding by state buyers, the entire portfolio will be presented to national buyers for around two days, according to NLEX President and CEO Dave Ludwig.  If the highest bid from the national buyers does not exceed the aggregate of high bids on the state auctions, the individual state portfolio will go to the highest state bidders.  If a national buyer bids more for the entire portfolio than the aggregate, the entire portfolio goes to the national buyer.

“We created this program in response to feedback we were getting from state buyers who were frustrated that they couldn’t compete as effectively with large national buyers for portfolios that had accounts heavily concentrated in their states,” Ludwig told insideARM.com.

Ludwig said that the model is similar to what many debt resellers currently offer, but that he does not envision this program competing with resellers.  The portfolios offered by NLEX under the state buying program will be different than those offered by resellers.

NLEX will host a conference on the state buying program in St. Louis on August 7th.  Interested state buyers are encouraged to contact Van Millis, NLEX Vice President – Marketing for more information.