CBF Asset Management, LLC  began operations in 2009 with the purpose of developing a privately held equity firm that will be purchasing charge-off accounts from major banks. Its principal offices are presently located at 668 North Coast Hwy, Suite 1230, Laguna Beach, CA 92651.  The Company’s telephone number is (949) 499-8010. The Managing Partner of the Company is Gary Baker and his e-mail address is: gary@crescentbayfinancial.com

Operations

CBF Asset Management, LLC is taking advantage of the tremendous opportunities available today in the number of charge-off accounts mainly from major banks. The rising number of bank failures, has added even more supply to the market. Since the existing debt and collection industry does not have adequate capacity to absorb the current or foreseeable inventory of assets, prices have plummeted. These circumstances have created a unique opportunity for CBF Asset Management, LLC to establish a niche in the current market.

The Problem

Banks have strict guidelines that limit their flexibility in resolving overdue accounts and have been reluctant to modify their internal rules. The fear is that if they were to structure a workable solution for these customers, a precedent would be set for their remaining accounts. If the banks settled for less than 100% of the account balance or accepted less than the agreed payment, there is a real concern that other accounts wouldn’t pay, in the hope that they too, would get a reduced settlement. (Such as the example of Advanta, where the company ceased providing new credit or offering credit to their customers, an then about 60% of their existing accounts stopped paying) After 180 days, the banks are required by Government regulation, to write off these credit card accounts.

The Solution

When accounts are charged-off, they can either be placed with outside agencies or kept by the bank for further collection activity. Since the volume of charge-offs is so high, the banks have just been liquidating many of their accounts on the open market. The bulk of these charged–off accounts are generally brokered to debt buyers and collectors for pennies on the dollar. As the new account owners are not tied to banking guidelines, there is much greater flexibility in establishing reduced settlement amounts and structuring monthly payments with the customer.

We need to address the massive amounts of debt that has affected every sector of our economy. This is a major undertaking, but it is a necessary part of healing our economy. Debt Buyers and collectors serve an important function in settling these accounts and helping customers resolve their financial obligations. Until this vast inventory of debt is serviced, confidence will not be restored in the marketplace.

Our Customer

Our accounts are acquired from banks, the FDIC, and Private Brokers. These accounts generally represent good people, who are having a difficult time in the current economy. Most of them want to honor their obligations, but because they have lost their job or home, suffered a personal tragedy or had an illness or divorce, they have fallen behind on their payments. Many of the accounts that we see were issued to responsible people who originally had high credit scores and good jobs. By treating them with dignity and respect, we become their allies. By working together, we can assist the customers in developing a plan to pay off their account, at a significant discount, and start to restore their credit.

The Business

CBF Asset Management, LLC was established as debt buying entity with the purpose of acquiring charged-off consumers assets from banks and large debt buyers at wholesale prices. Upon acquisition of the accounts CBF Asset Management, LLC places the portfolios under management, with a professional account manager who directs a series of specialized collection agencies to recover the consumer debt.

CBF Asset Management, LLC is a member of the Loan Buyers Group, LLC – www.loanbuyersgroup.com  which was established for a group of Debt Buyers and Collection Agencies to work together to buy charged-off consumer debt, in larger volumes for discounted prices. By buying in larger volumes, the Loan Buyers Group can work directly with the Issuers (Bank) and get better quality inventory, and avoid different levels of markup as well as some adverse selection of the files that often occurs when buying files retail. The Loan Buyers Group provides computer modeling of every single file to determine the liquidation or recovery rate for each portfolio, establish profit objectives and guidance for the Group Members, on how much to pay for any given portfolio. CBF Asset Management, LLC is located in Laguna Beach, CA and is primarily interested in - Equity Funding (Venture Capital, Angel, Private Equity, etc.)

Crescent Bay Financial, LLC manages the Loan Buyers Group, CBF Asset Management, LLC and produces a regular industry newsletter for Debt Buyers. You can subscribe to the free newsletter at http://visitor.constantcontact.com/email.jsp?m=1102694182143 . For information on investment opportunities and a copy of the firm’s Private Placement memorandum, please contact us at: gary@crescentbayfinancial.com