Debt Resolve Announces $20 million Facility for Debt Purchasing

Debt Resolve, Inc. (AMEX: DRV), the only company to offer a patented Internet solution for the collection and settlement of consumer finance accounts receivable, announced today that its wholly-owned subsidiary, DRV Capital LLC (DRV), has secured a $20 million debt financing facility for the purpose of entering into the distressed accounts receivable purchase market. The facility was secured from Sheridan Asset Management, LLC, a White Plains, New York, based commercial finance company that specializes in providing debt capital for transactions up to $100 million.

James D. Burchetta, Debt Resolve Chairman and CEO, said: “With the credit facility, DRV Capital plans to purchase opportunistic portfolios of consumer finance accounts receivable that will yield better margins and increased recoveries with the usage of Debt Resolve’s groundbreaking Internet collections and skip tracing solutions.” DRV will introduce the opportunity for debtors in the newly purchased portfolios to settle and pay their accounts online using Debt Resolve’s patented settlement capabilities. As demonstrated historically with Debt Resolve’s existing client installations, DRV may collect as much as 15-20% more on those accounts that choose to settle online (versus traditional methods) with a significantly lower cost of collection. “Achieving these results could be a powerful competitive advantage and allow DRV to aggressively purchase portfolios that fit the projected criteria,” added Mr. Burchetta.

DRV’s President, industry veteran Howard Knauer, was previously a Managing Director for eCast Settlement Corp., a wholly-owned consumer debt purchasing unit for Bear, Stearns & Co. Inc., and has headed the collection units for such industry leaders as American Express, Fleet and Citibank. Mr. Knauer has assembled a world-class organization and infrastructure anticipating DRV’s entry into this market.

Debt Resolve provides lenders, collection agencies, debt buyers and utilities a with a patented online bidding system for the resolution and settlement of consumer debt and a collections and skip tracing solution that is effective at every stage of collection and recovery.