We purchased a portfolio of in-house partially paying Personal Loans from the banking subsidiary of a large insurance company. The lender was also due to complete two further sales of similar size and quality to two DCA’s who were collecting payments on behalf of the lender. For differing reasons both sales to the DCA’s fell through. TBI Financial Services were able to step in and purchase both portfolios for the same terms originally agreed by the lender and the DCAs.

As we have always done, the purchased accounts that were being collected by the DCA’s remained with them as we believe that there is little benefit to anybody, especially the customer, to have to amend an existing payment arrangement.

The purchase transactions benefitted all parties, the lender completed the sales at their agreed terms, we increased our portfolio holdings, the DCA’s retained the contingency business on the same terms and there was minimal disruption for the paying customers.

In addition to treating customers fairly, we apply the same principle to our clients. For example, TBI Financial Services entered into a Contractual Agreement with a Retail Finance operation, “FINCO A”. The agreement was to purchase non-performing loans in monthly tranches over a term of 60 months with a review after 36 months.

During the second year of the arrangement “FINCO A” was acquired by another Financial Institution, “FINCO B”. Upon the request of “FINCO B”, TBI Financial Services agreed to terminate the Contract without enforcing penalty clauses for early termination. Our reasoning behind our decision included the desire to develop a new relationship with “FINCO B”. We have since completed a number of spot purchases from “FINCO B” and continue to have an excellent working relationship with them.