Pending Debt Settlement Regulation Driving Strong Growth for Persolvo Data Systems

Irvine, Calif. – Persolvo Data Systems, a leading provider of web-based settlement software and analytics tools, is experiencing strong growth as a result of pending regulation and legislation designed to regulate the business practices of debt settlement providers. As the leading aggregator of consumer debt settlement account information, Persolvo added over $1 Billion of debt to its platform in the last 90 days, increasing the total debt in its database to over $4.5 billion. Persolvo currently aggregates account information on consumers enrolled with approximately 400 of the largest debt settlement service providers in the industry.

Additionally, the company saw its settlement volume increase in the first quarter by over 320% as compared to the prior year and revenues increased by over 343% during the same period. Finally, the company nearly doubled the number of creditors, debt buyers and collection agencies utilizing its technology in the first quarter of 2010.

Debt settlement companies face a number of proposed regulations being considered by the Federal Trade Commission, State Attorneys General and Congress. The proposed regulations would ban debt settlement companies from charging a fee for their services before settling a debt, place a cap on the amount a debt settlement company could charge for its services and would implement certain restrictions on the advertising and marketing of debt settlement services.

The new reality of doing business in this regulated environment will require debt settlement service providers to provide the greatest efficiencies and utilize leading technologies, such as those offered by Persolvo, in order to maximize the number of accounts settled. Furthermore, creditors, debt buyers, collection agencies and legal recovery firms will need to develop focused strategies and define credit policies designed to identify and collect on accounts enrolled in debt settlement programs and better leverage this channel to increase liquidation rates and lower collection costs.  

With regulators and legislators now validating the debt settlement industry through various proposed regulations and reducing or eliminating the upfront cost and risk to a consumer who enrolls in a debt settlement program, Persolvo predicts strong growth in new enrollments in debt settlement programs through the balance of this year and beyond.  With debt settlement accounts representing roughly 20-25% of gross charge-offs annually, creditors will need to be very proactive about developing strategies to address this growing segment of consumer debtors.

About Persolvo Data Systems
Persolvo Data Systems is the first patent-pending system to aggregate account information on debtors enrolled in voluntary workout programs with leading debt settlement companies and law firms. Persolvo’s web-based settlement application allows creditors and collectors to locate debtors enrolled in debt settlement programs, analyze their account information to uncover highly-liquid settlement opportunities, and settle large numbers of accounts online with hundreds of debt settlement companies using Persolvo’s hosted settlement application. The Persolvo system is the largest database of aggregated debt settlement accounts available today and provides the most accurate and up-to-date information, including settlement savings balances, on debtors enrolled in debt settlement programs. For more information, visit our website at http://www.persolvodatasystems.com.

Persolvo: Latin Verb – to unloose, explain, expound/pay off a debt, pay.