PSCU Buys Minnesota Collections Company.
Byline: Jim DuPlessis
PSCU has acquired CU Recovery and The Loan Service Center to help its credit union owners better manage collections.
The St. Petersburg, Fla., CUSO did not say in its announcement Wednesday how much it paid for the company based in Wyoming, Minn., and 35 miles northeast of Minneapolis.
The purchase, which was completed Monday, adds the company's 120 employees to PSCU, which had 1,900 employees before the deal. PSCU said it will maintain the company's offices in Minnesota.
Jack Lynch, PSCU's chief risk officer, said the move allows PSCU to expand its existing suite of payment services.
"The acquisition of CU Recovery and The Loan Service Center enhances our current account recovery and collections services, enabling us to provide a more robust offering and ultimately a more integrated member experience," Lynch said.
CU Recovery, Inc. (CUR) is a third-party collection agency managing non-performing and charged off loans. It has more than 90 employees, and has worked with over 2,700 credit unions in all 50 states.
The Loan Service Center, Inc. (TLSC) is not a collection agency, instead providing staff to credit union collection departments on a part time, full time, temporary, or permanent basis. TLSC account service representatives work under the direction of the credit union's collection manager and follow the collection procedures established by the client to service the client's delinquent loan portfolio prior to charge off. TLSC has worked with over 200 collection departments.
Both of these businesses will become wholly-owned subsidiaries of PSCU. The acquisition will enable PSCU to add limited core integration that already exists within The Loan Service Center, as well as post charge-off collections to the company's current offerings.
Kelly Becker and Terry Brelje founded CU Recovery and The Loan Service Center in 1990. Becker, who had been serving as CEO, will retire.
"PSCU's commitment to member service and the credit union industry were key elements in our decision to become a part of the cooperative," said Chris Becker, the company's chief operating officer and son of Kelly Becker. "We are excited about the opportunity to leverage the power of PSCU to enhance our services for our current and future clients."
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|Publication:||Credit Union Times|
|Date:||Feb 28, 2018|
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