LOS ANGELES –
For the third time in the past year, Westlake Portfolio Management (WPM) — a division of Westlake Financial Services — is absorbing the accounts of a finance company that has departed the business during the span of the coronavirus pandemic.
On Tuesday, Westlake announced it was selected by Coastal Credit to be the third-party servicer of its $103 million active portfolio. The Indianapolis-based finance company sent a letter to the Indiana Department of Workforce Development on March 23 that it would discontinue its operations, laying off 127 employees. Coastal Credit informed Hoosier State officials per requirements of the federal Worker Adjustment and Notification Act (WARN Act).
Westlake indicated in a news release that the Coastal Credit portfolio consists of approximately 10,500 active and more than 13,000 charge off accounts. WPM will handle full third-party servicing responsibilities on the portfolio including customer service, collections, titles management, remarketing and treasury responsibilities.
The company highlighted WPM completed the onboarding of the portfolio ahead of schedule on April 2.
“WPM onboarded the portfolio 11 days ahead of schedule,” Westlake Portfolio Management vice president Todd Laruffa said in the news release. “The WPM team did an amazing job executing the transfer of the portfolio during the current pandemic situation that we are all experiencing.”
Six years ago, Coastal Credit relocated its headquarters from Virginia Beach, Va., to Indianapolis. The company had been conducting business in 27 states through its 13 branch locations.
“WPM is looking forward to providing Coastal Credit’s customers with the best service possible,” Westlake senior vice president of servicing Brian Renfro said. “We are prepared to assist our new customers with any questions they may have regarding the transfer of their loan.”
Westlake has been taking on thousands of new customers through this method.
This past October, Westlake absorbed Security National Automotive Acceptance Company’s (SNAAC) $221 million automotive portfolio after the finance company that specialized in working with servicemembers disbanded.
And last May, Westlake also took in the $100 million automotive portfolio of Total Finance, an Illinois-based finance company.