Encore Capital Group, a business that buys portfolios of consumer debt, announced that it purchased tax refinancer Propel Financial Services this month for $187 million.
Propel Financial Services is a private refinancing company based in San Antonio that assists homeowners who are delinquent on their property taxes by working with local municipalities to create mutually agreeable monthly payment plans between all the parties. By assisting property owners with their tax obligations, tax lien transfers provide important revenue to municipal governments.
“Propel has an excellent track record of deploying capital at attractive returns and provides a valuable and affordable service for consumers,” said Brandon Black, president and CEO of Encore Capital Group in a press release. “The acquisition of Propel will capitalize on Encore’s expertise in consumer-level analytics and operational capabilities, will leverage the company’s deep experience assisting financially stressed consumers, and will put Encore in position to build a significant tax lien acquisition business.”
San Diego-based Encore Capital Group purchases portfolios of defaulted consumer receivables from major banks, credit unions, and utility providers and partners with individuals as they repay their obligations and work toward financial recovery.
Even though it is under new ownership, Propel Financial Services will retain its corporate name and headquarters. According to Encore, there are no planned personnel changes at Propel and the company’s executives will remain in charge of its business operations.
“We built Propel to help homeowners and businesses experiencing financial difficulties pay the much needed property taxes used to maintain and grow communities,” said Jack Nelson, president of Propel Financial Services. “Becoming a part of the Encore family is the next step for Propel as we look to increase the positive impact we have on Texans and expand our services nationwide.”
