Providian: Collections Unit Has $1B of Pacts

Providian Financial Corp. said its year-old First Select Corp. subsidiary, which buys and works to recover bad debts, has obtained more than $1 billion of contracts with seven top credit card issuers.

First Select buys the charged-off receivables and offers account holders a range of payment plans.

"Our success in achieving the $1 billion milestone in our first year demonstrates that our operating philosophy is right on the mark," said Roger Van Duinen, president of First Select. "Our goal is to bring value both to the financial institutions from whom we purchased the accounts and to our newly acquired customers by helping them to rebuild their financial strength."

Shailesh J. Mehta, Providian's chairman and chief executive officer, said, "First Select fits well with Providian's mission of helping people build or rebuild, responsibly use, and protect their credit."