Unifund Group Corp
David Rosenberg

David Rosenberg established UniFund in 1986 in Cincinnati, Ohio for the sole purpose of buying distressed accounts receivable. UniFund was one of the first companies to explore this niche of the collection industry.

As founder and CEO, Rosenberg modestly describes UniFund as a company that buys and liquidates distressed assets, but in reality, the company does much more than simply “buy paper.” UniFund currently owns millions of accounts worth billions of dollars. Using internal departments comprised of 50 employees, the company offers collection analysis with a mission to maximize the recovery potential of these accounts, and assist other companies with existing and potential portfolios.

Consumer credit is a booming business. More than $1.8 trillion in consumer credit debt exists in the United States alone. Assuming an expected default rate of 4 to 6 percent clearly predicts the continuing rise of distressed receivables. UniFund currently purchases in excess of $4 billion in distressed accounts annually, and offers a variety of services for outside collection and portfolio acquisition companies.

UniFund uses more than 7,000 proprietary programs to analyze and rate portfolios which are segmented based on industry or customer request. Specialized systems are available for outside customers to evaluate portfolios before purchase. Outside customers also use these programs to rescue existing challenged portfolios.

Another niche market served by UniFund involves distressed and challenged collection portfolios. Collection and credit companies, along with portfolio buyers, use internal systems to attempt collection. After exhausting all efforts, a high volume of the accounts can remain uncollectible. UniFund offers an alternative to write off the existing debts by providing analysis to rescue potential bad debts based on a review of existing company policies and procedures. Recommendations are then made for changing policies and procedures to increase collection efficiency. UniFund includes recommendations on handling accounts based on proprietary analytical programs. Recommendations are made on which accounts to rework internally, or send to litigation, call centers or third-party collection agencies.

The company offers outside customers a unique regenerative ability based on successful philosophies and practices developed for internal use. According to Rosenberg, most collectors limit their ability to collect by attempting to shorten the collection life cycle. Shortening the cycle has historically resulted in lower collection rates. By analyzing the accounts, UniFund helps collection clients determine when a debtor may be able to pay.

Rosenberg believes a vast majority of debtors are unable to pay due to changes in circumstance. For example, a debtor loses his or her job, has an illness or accident, or experiences some other major life change. Although the debtor is currently unable to pay, there still is a desire to pay the debt. Such accounts require a long-term strategy to be effective. Using the UniFund philosophy allows collectors to focus efforts on determining the timeline for payment rather than overwhelming debtors with collection calls. Rosenberg believes collection calls during the detrimental life change only serve to complicate the collection process.

Tools developed by UniFund allow portfolio buyers and collection professionals to become more intellectual than clerical. By using technology to handle clerical tasks, collection professionals have time to analyze data for increased efficiency.