Emergent Business Group Launches Next-Generation Debt Collection Company to Service Record Levels of Consumer Debt

HORSHAM, Pa. –– Emergent Business Group, Inc. announced today the official launch of its business and the opening of its corporate headquarters in Horsham, PA. The headquarters will include a 150-person servicing center in addition to executive, compliance and administrative staff.  In conjunction with the company launch, Emergent has secured up to $10 million of equity financing from Strandview Capital, a growth equity fund focused on the financial services industry.

Consumers in the U.S. are heavily reliant on credit to purchase goods and services.  The purchase and collection of delinquent debt is a $14 billion industry and serves a vital role in the U.S. economy.  If this debt is not recovered, consumers are negatively impacted through higher prices for goods and services, increased interest rates, and decreased availability of credit.

Over the past ten years since the mortgage crisis of 2008, a new consumer debt cycle has emerged, and household debt levels have once again risen to all-time highs.  The combination of auto loans, credit card debt, student loans and new online lenders has resulted in household debt reaching a record level of over $12 trillion.  Subprime auto loans have already experienced increased defaults, which are expected to rise further.  In addition, after the mortgage crisis, the leading commercial banks in the U.S. dramatically reduced their practice of selling and outsourced servicing of delinquent credit card debt due to increased regulatory scrutiny.  However, industry analysts expect these banks to begin selling and servicing delinquent credit card debt, eventually to previous levels.

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