Payday Lenders Turning to Selling Unpaid Loans, Rather than Sending to Collections

The Payday loan industry has experienced unprecedented growth recently and now these lenders have a more effective tool to recoup losses from defaulted debtors. Behind the success of this newly popular service is the purchasing specialist Gaintner Dugan Enterprises LLC (GDEdebt.com). Payday loan companies are quickly realizing the many benefits offered through selling their distressed loans.

Debtors defaulting on their loans are just part of doing business as a Payday loan owner. Priority is trying to minimize this occurrence, but owners realize that offering loans with such high interest rates comes with some unwanted disadvantages.

“We offered a service to an industry that needed an alternative and the response has been tremendous. Factoring receivables and purchasing distressed debt is not new, but it was not readily available to this industry,” says Brian Gaintner, co-founder of Gaintner Dugan Enterprises LLC.

There are only a handful of agencies that specialize in Payday loan debt collections and even less that produce consistent returns. Payday loan debt selling allows the lender to smooth cash flows and quickly liquidate their debt portfolios into cash.

“The truth is that we get most of our customers due to the frustration they have experienced in the past. Collection agencies take months to remit back collections, customer service if often lacking, and the return on their debt portfolio is minimal. Our customers love seeing a substantial check up-front so they can move on to running their core operations,” says Willie Dugan of GDE.