Debt Purchaser Joins Forces with WebBank for Consumer Lending and Credit Card Opportunities

Leading debt purchaser Genesis Financial Solutions, Inc., and WebBank, a Salt Lake City-based industrial bank, announced today they have signed partnership agreements for collaborative financial services programs in the consumer receivables industry.

• WebBank will issue MasterCard products on Genesis' behalf, and Genesis will purchase the resulting receivables. The contract between the parties, which runs through yearend 2008, calls for Genesis to present a variety of market-driven card programs to consumers in a wide range of credit classes, including near-prime. The partnership anticipates more than 100,000 active credit card accounts at WebBank by yearend '06.
• As part of a separate agreement, WebBank will also issue consumer loans with Genesis’ Consumer Lending division. Genesis specializes in financing programs for companies that provide products and services to niche players and underserved industries, including career colleges, medical/dental providers, and telecommunications providers.

Genesis, which has issued consumer loans since 2003 and began card issuing in 2004, looks to this strategic partnership to continue market expansion in its existing product lines. “This relationship will allow us to expand our consumer lending business and credit card opportunities much more rapidly,” says Bruce Weinstein, Genesis CFO. “Working with WebBank gives us great flexibility as well as a wider scope for our programs, nationwide. Their resources, experience and expertise will help us continue to grow.” Genesis doubled in size in early 2006 following the Q1 acquisition of a credit card portfolio comprising more than $250 million in receivables.

“We are excited about these programs with Genesis” says WebBank President and CEO Gerry Smith. “They have an outstanding senior management team with many years of installment lending experience. We think they will be a great platform for us for additional business development including affinity card programs.”