Patented technology licensed to financial institutions for their debt resolution issues
Debt Resolve, Inc. (OTCBB and OTCQB: DRSV) Very few companies have been able to capitalize on the financial crisis.
Debt Resolve, Inc. has done so, by providing financial institutions, lenders, collection agencies, debt buyers and hospitals an ASP model to collect debt on the web, on line.
The Company is the “EBay” of debt resolution with a patented online collections tool that offers significant cost efficiencies to the debt collector and saves the indebted party from the dread debt collector phone call.
Debt Resolve provides a patent-based online bidding system for the resolution and settlement of consumer debt by selling their system to:
- Financial Institutions
- Collection Agencies
- Debt Buyers and
- Healthcare Facilities including Hospitals, Labs, Physicians and other service providers
Why Invest in Debt Resolve
Every aspect of our lives has been transformed into an online system in the last three years. The average age of a credit card defaultee is 34 years old with $12K in debt. Debtors now fully understand online payments. Most defaultees have had jobs and extensive internet experience. Most lenders have email addresses for debtors which allows easy email contact, which is more direct and less expensive than phone or mail.
Debt Resolve delivers a product that is a bidding platform. The auction model allows debtors to log on and essentially bid to resolve their debts.
Debts are resolved efficiently and effectively online. The telephone call center in India has been a disaster in every venue applied, particularly debt resolution.
The world has returned to American solutions, and an online debt solution center is less expensive than any call center, India or the United States.
With a simple internet interface financial institutions, lenders, collection agencies, debt buyers and hospitals are able to provide an internet based debt resolution platform.
BELOW IS A SAMPLE FROM THE DEBT RESOLVE WEB INTERFACE:
Here’s how DebtResolve® works and WHY it works.
Debt Resolve® sells software to financial and other consumer creditors which include major banks and other businesses that own debt or service consumer debt portfolios.
Their software — that is user friendly — allows the indebted party to avoid speaking with the dreaded debt collector while providing incredible savings to the debt collector by automating the collection process. The patented online bidding system maximizes the settlement process. Everybody wins here!
The indebted party logs on to the screen developed by Debt Resolve and provided to the Bank or the Collection Party and supported by their software (which in turn is supported by five patents).
The Bank or the Collection Party has already keyed in an acceptable collection amount and payment schedule. The Debtor then has three opportunities to input their offer to resolve the debt. If any one of their offers meets the Collection Party’s acceptable collection amount and payment schedule, the debt is then resolved.
Debt Resolution from the Privacy of Your Home Online:
Take and online tour here: http://www.debtresolve.com/products_demo.php
Debt Resolve Is Not a Consumer Based Product
- Product Sold to Financial Institutions.
- Consumer debt has never been greater
- Online Business Model
- Patented Product
Debt Resolve Product Sold To:
- Financial Institutions
- Collection Agencies and Law Firms
- Healthcare – Hospitals and other Agencies
The Company’s products are being marketed to three primary markets: the first and second are financial institutions and collection agencies or law firms, which have historically been their traditional markets.
The Company is also expanding into healthcare, particularly hospitals, which is now represents their third market.
Expanding Geographical Scope
The geographical scope is the United States, Europe, Canada and now Asia. Entry into the European and Asian marketplaces is underway by reviewing the mode of business and modifying contracts to comply with appropriate European and Asian privacy, debtor protection and other applicable regulations. Initially, the expense associated with servicing United Kingdom and other potential European or Asian clients will be minimal, consisting primarily of travel expense to meet with those clients and additional legal fees.
DebtResolve® and DR Collect™ Flagship Products
DebtResolve® Software System
DebtResolve® is an online collections tool, delivered in an ASP environment and private-labeled for use across multiple segments of the collections industry. It allows any stage of debtor to self-cure online and features the Company’s patented online bidding system that maximizes the settlement process.
DebtResolve® is provided to banks and other credit originators, credit card issuers and third-party collection agencies, as well as assignees and buyers of charged-off consumer debt.
Debt Resolve’s® technology services provide a cost effective asset receivables management system.
DR Collect™ for Collection Agencies and Law Firms
DR Collect™ is specifically targeted to the collection agency and collection law firm market.
This system allows an agency or law firm to implement a patented online collection channel in a matter of days. These completed upgrades now include a fully automated front end for the implementation of the system as well as the automation of the registration process, the payment process for monthly agency fees and the upload process to load accounts into the system.
The DR Collect™ system is capable of importing placement files in almost any format so that clients will no longer have to follow other data standards. Clients can use file formats they already use for other vendors or a standard export from their operating collection floor system. The frequency of upload is also determined by the client. In order to further promote adoption of the DR Collect™ platform, the Company has implemented a new pricing schedule for the agency and law firm market that is simple and cost effective.
Future upgrades are expected to automate the back end of the system to distribute all reporting back to the agency or law firm with no manual integration and allow limited ability to change the screens to be used by the client. Collectively, we anticipate these upgrades will virtually eliminate the implementation burden for our agency and law firm clients, putting them in control of many aspects of the system.
The implementation time for DR Collect™ is approximately seven days from the date of contract with the client for the agency and law firm market.
DR Collect™ pricing is considered to be the most competitive collection tool and channel in the market. It is believed that there is no comparable offering to DR Collect™ in the market today.
Web Based System Advantages
- Internet use reduces labor and overhead
- Legal risks are reduced and are FDCPA compliant at all times
- The Client’s legal team reviews all language presented to debtors for FDCPA compliance
- Shortens collection cycles
- Tracks performance of collections online, in real time
- Views and assesses a variety of reports
- Changes in treatment models made instantly
- Online results to fine-tune collection strategies and models
- Higher Rates of Recovery
- DebtResolve® settlements currently run 14% higher than creditors’ floors
Alternative for Debtors
- Introduce a new channel to customers who have not responded to other efforts, at any hour of the day night
- Give debtors a sense of privacy and control
- Speak to debtors in their preferred language
Revenue and Business Model
The Company earns revenue from collection agencies, collection law firms and lenders that implemented their online system.
The Company’s current contracts provide for revenue based on a percentage of the amount of debt collected or through a flat monthly fee.
Revenue may be derived from a combination of set up fees or flat monthly fees with transaction fees upon debt settlement, fees per account loaded or fees per settlement.
Fair Isaac’s ScoreNet network partnership allows Fair Isaac’s Debt Manager, RMS and Placement Plus clients, along with all other ScoreNet partners, to have access to the DebtResolve system without any need for setting up direct data transfers.
The DebtResolve system is being integrated with the YouveGotClaims web-based product to create a single administrative platform for the management of debt portfolios sent to law firms for collection litigation. YouveGotClaims is used by hundreds of leading collections law firms in the U.S.
Debt Resolve incorporates certain of the same patented bidding technology used by Cybersettle. The named inventors on each of these patents are James D. Burchetta and Charles S. Brofman. Mr. Burchetta is the Co-Chairman and Founder of Debt Resolve. Mr. Brofman is the former President and CEO of Cybersettle, Inc. which he and Mr. Burchetta co-founded and which is now the leader in web facilitated insurance claim settlement. Debt Resolve has an exclusive license under these patents, and under patents which are issued or pending in numerous other countries around the world, in the field of resolving disputes related to the collection of consumer debt.
The Company has an exclusive license to use the systems and methods covered by the associated patents for the collection of consumer debt in the US and internationally.
U.S. Patent Numbers:
DebtResolve intends to market their service to other segments served by the collections industry worldwide.
It is anticipated that their system will be especially valuable for the collection of low balance debt, such as that held by utility companies and online service providers, where the cost of traditionally labor intensive collection efforts may exceed the value collected.
Additionally, the Company intends to pursue past-due Internet-related debt, such as that held by sellers of sales and services online. Consumers who incurred debt over the Internet are anticipated to be likely to respond favorably to an Internet-based collection solution. In addition, creditors of Internet-related debt usually have access to debtors’ e-mail addresses, facilitating the contact of debtors directly by e-mail.
It is believed that significant opportunities exist in healthcare with hospitals and large provider groups. Expanding to more recently past-due portfolios of such debt will result in higher settlement volumes, improving clients’ profitability by increasing their collections while reducing their cost of collections. No material incremental costs associated with developing these capabilities and marketing to these creditors are anticipated.
Management and Board of Directors
David Rainey – President & Chief Financial Officer
David Rainey has over 19 years of experience in public company accounting and finance, corporate governance, Sarbanes-Oxley issues, and mergers and acquisitions. He served as the Chief Financial Officer and Treasurer of Hudson Scenic Studio, where he was responsible for finance and accounting. Previously, he was Chief Financial Officer and Vice President of Finance at Star Gas Propane, L.P., a business unit of Star Gas Partners, L.P.
René Samson – Vice President, Information Technology
René Samson has worked as a software developer for more than 8 years. He has experience working on projects for multinationals as well as startup companies. René joined DebtResolve as a senior software developer, and was an integral part of the team that developed the DebtResolve application. As Vice President of Technology René is now responsible for the entire IT department of DebtResolve.
James D. Burchetta – Co-Chairman & Director
Mr. Burchetta has been Co-Chairman of the Board, and Chief Executive Officer since January 2003. Mr. Burchetta is the Co-Founder of Debt Resolve as well as the Co-founder of Cybersettle, Inc., which settles insurance claims over the Internet, and served as its Chairman of the Board and Co-Chief Executive Officer from 1997 to August 2000 and as its Vice Chairman from August 2000 to February 2002. Prior to founding Cybersettle, Mr. Burchetta was a Senior Partner in the New York law firm of Burchetta, Brofman, Collins & Hanley, LLP, where he practiced insurance and corporate finance law. Mr. Burchetta received a B.A. degree from Villanova University and a J.D. degree from Fordham University Law School and is a member of the New York State Bar.
James Brakke – Co-Chairman & Director
Mr. Brakke is currently a director and executive vice president of Dealer Protection Group, a company that provides insurance services to the automotive industry. He is the former president of Brakke-Schafnitz Insurance Brokers, a firm he co-founded in 1971. The commercial insurance brokerage and consulting firm manages in excess of $180 million of insurance premiums with both domestic and international insurers. He has also served as a director of Commercial Capital BanCorp from February 2001 until October 2006 and as a director of Commercial Capital Bank from January 2000 until October 2006. Mr. Brakke was a founding director of Pacific National Bank until its sale to Western Bancorp in 1998. Mr. Brakke has held numerous director positions for both non-profit and for-profit organizations. He is a past president of the professional insurance fraternity, Gamma Iota Sigma, and a former member of the board of advisors for Pepperdine University’s Graziadio School of Business. In addition, he sits on the board of directors for Cal Spas and Maury Microwave Corporation. His depth of knowledge and experience as well as the many relationships he has built over the years is expected to bring additional strength to the current board and management team at Debt Resolve.
William Mooney, Jr. – Director
Mr. Mooney has been a member of our board of directors since April 2003. Mr. Mooney is currently President of the Westchester County Association, and also serves as Senior Vice President at Independence Community Bank. Mr. Mooney has been involved in the banking sector in an executive capacity for more than 30 years. Prior to joining Independence Community Bank, he served for four years as an Executive Vice President and member of the management committee of Union State Bank, where he was responsible for retail banking, branch banking, and all marketing activity. Mr. Mooney also spent 23 years at Chemical Bank and, following its merger with Chase Manhattan Bank, he was a Senior Vice President with responsibilities including oversight of all retail business. Mr. Mooney was the President of the Westchester Partnership for Economic Development. He also held the position of Chairman for the Westchester County Association, past Chairman of the United Way Westchester and Chairman of St. Thomas Aquinas College. He has served on the board of trustees for New York Medical College St. Agnes Hospital, the Board of Dominican Sisters and the Hispanic Chamber of commerce. Mr. Mooney received a B.A. degree in business administration from Manhattan College. He also attended the Harvard Management Program and the Darden Graduate School at the University of Virginia.
Jonathan C. Rich – Director
Mr. Rich, age 41, has been the Executive Vice President and Head of Investment Banking of National Securities Corporation, a full-service investment banking firm, since July 2008. Mr. Rich had been the Executive Vice President and Director of Investment Banking of vFinance Investments, Inc. since July 2005, and assumed his current position with National Securities when vFinance was acquired by National Securities in July 2008. Mr. Rich had previously served as Senior Vice President and Managing Director of Corporate Finance at First Colonial Financial Group since January 2001. First Colonial Financial was, in turn, acquired by vFinance in July 2005. Mr. Rich graduated from Tulane University with an interdisciplinary major in economics, political science, history and philosophy and received a joint J.D. / M.B.A. degree from Fordham University with a concentration in corporate finance.
Debt Resolve, Inc.
150 White Plains Road
United States, 10591
Forward Looking Statements: Certain statements in this press release and elsewhere by management of the Company that are neither reported financial results nor other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of the Company’s operations. Debt Resolve undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Investors are advised to consult any further disclosures made on related subjects in the Company’s reports filed with the SEC.
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