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Debt Sales

ARE YOU TAKING UNNECESSARY RISKS WITH YOUR CUSTOMERS' PII?

Taking Unnecessary Risks With Consumers' PII?

ARE YOU TAKING UNNECESSARY RISKS WITH YOUR CUSTOMERS' PII?

As a lender, you are entrusted with large amounts of Personally Identifiable Information (PII) about your consumers and, according to several federal statutes protecting PII,** you are responsible for the security of that data. As the originating creditor, you likely have security and access protocols in place to protect this data while it remains inside your organization. But what happens when you sell or place your nonperforming accounts on the secondary market? Is your consumer’s PII still protected? 

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Brooke Teal from EverChain supports LLS with Fundraising efforts

EverChain's Brooke Teal Fundraising for LLS

Here’s another opportunity to join in the awesome charitable work that is such a cornerstone to many of our industry’s businesses and professionals! Receivables Roundtable Founder, Adam Parks talks with Nancy Hughes of Connect1, LLC and Brooke Teal of EverChain about their ten-week fundraising campaigns for the Leukemia & Lymphoma Society. Man & Woman of the Year is a philanthropic competition to support blood cancer research in the United States. Our industry boasts not just one, but two candidates this Spring! For you West Coasters, Nancy Hughes is running her campaign in San Diego, CA. For the East Coast crowd, Brooke Teal’s campaign is based in Atlanta, GA.

Learn more and join a team (or both!) at mwoy.org. If your company makes a donation, be sure to let us know! Learn more using the links below.

Brooke Teal - https://www.linkedin.com/in/brooke-teal/

EverChain - https://www.linkedin.com/company/everchaincorp

This was originally posted by Receivables Info with Adam Parks on March 14, 2022. Check out the links below to learn more.

Watch the video HERE.

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Dan talks about three options for recovering nonperforming loans

Debt Sales as a Recovery Option for Creditors

If you are like most consumer lenders, you know a portion of your loan portfolio will default. As a creditor, there are three things you can do when a customer fails to pay their debt:
1. Collect: Attempt to collect internally or Assign to a law firm or third-party collection agency
2. Sell: Sell the defaulted account and add revenue to your financial bottom-line
3. Nothing: Consider it a cost of doing business and write off the loss.

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Investors Turn Wary on Consumer Debt - WSJ

By Matt Grossman and Matt Wirz
Originally Posted on April 11, 2022 in the WSJ, download the PDF or view the full article here.

Demand softens for bonds backed by loans from riskier borrowers, along with shares of fintech consumer-lending companies. Investors are growing more skittish about bonds backed by consumer debt, worried that inflation and slowing growth will increase the number of low-income borrowers falling behind on car payments or credit card. Buyers of bonds backed by subprime car loans or credit cards are demanding the highest premiums over interest-rate benchmarks since mid-2020. Meanwhile, investors have punished shares of some financial technology companies that helped fuel a recent surge in consumer borrowing, such as Affirm Holdings and Upstart Holdings.

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Debt Sales: Traditional Transactional Broker v. EverChain

Broker v Our Full-Service Debt Sales Approach

When lenders decide to sell their debt, they have options. Many choose to use a broker because they don't want to invest in the staff and the technology it would take to compliantly sell debt directly to a buyer. Sure, you could hire the staff, train them, and implement the technology – but that's a big lift. Because it's not just the technology expense upfront, but it's an ongoing expense to ensure that your technology doesn't just meet the needs of today's regulatory environment, but tomorrow's as well. You pay a broker a fee to cover the transaction, but it does not include compliance oversight – that still lies with you as the original creditor. 

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Michael Kraft Named EverChain CFO (9/2021)

REPOSTED FROM SEPTEMBER 2021

Michael Kraft joins EverChain as Chief Financial Officer.

Michael has over two decades of experience as a CFO and portfolio manager. He joins EverChain from Sunlight Financial, a solar fintech company, where he was Director of Finance leading the firm through its recent SPAC IPO. Prior to that, Mr. Kraft held positions in financial leadership at some of the top companies in the world including PwC, Goldman Sachs, Deutsche Postbank AG, WestLB AG, and ING Groep NV.

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