National Bank of Canada has bought a majority interest in Credigy Ltd., an Atlanta outfit that buys distressed consumer receivables in the United States and also collects on behalf of creditors.
Credigy uses an Internet servicing platform that lets it manage accounts through the entire recovery process. It will continue to focus on the U.S. market as it expands, National Bank of Canada said. Burt Samsky, Credigy's chief executive, and Steve Stewart, its president, who founded the company in 2001, remain in charge and own the remaining minority stake.
National Bank of Canada, based in Montreal, announced the purchase last week, without giving the price. Distressed consumer debt is a growing asset class uncorrelated to its existing operations, the bank said.
