By John San Filippo
Gwyneth Borden, founder and CEO of Remynt, is on a mission to transform the debt collection process. She believes it's time for a major overhaul of this often-maligned industry. This includes moving away from “fear and shame tactics” toward a more empathetic and supportive approach focused on financial resiliency.
“Remynt is actually transforming the debt collection process,” Borden explained to Finopotamus. “We are a debt buyer/collector that works with creditors and consumers to create financial resiliency.” She acknowledged that debt recovery “is not a very sexy space,” but given the growing debt burden faced by consumers, particularly credit union members, it’s a critical one.
Credit unions, Borden noted, often operate with a more generous lending model than larger banks, leading to higher losses, particularly in late-stage collections. “Credit unions specifically are seeing higher losses than some of the big banks because they generally have a more generous credit box and often have less sophisticated solutions that they’re using for collections, particularly late-stage collections.”
Remynt aims to empower credit unions with tools to help members recover financially, while preserving the valuable member relationship. “Credit unions have their members – their members are very precious … members fall behind because of the financial circumstances of today,” she said. “And many of them are interested in what Remynt has to offer.”
Remynt also offers a range of services tailored to credit union needs, from traditional contingency collections to debt purchasing and even a software as a service (SaaS) model that allows credit unions to manage collections in-house using Remynt's platform. “We can work with credit unions in a variety of ways,” noted Borden. “We can do the old-school contingency collections. We can also buy their debt. Or we can do a pre-offer approach. And then the final is a SaaS model.” This flexibility gives credit unions options to find the best fit for their specific situation.
Finopotamus asked: What sets Remynt apart from traditional collection agencies? “Most collection agencies are commission-based fear-and-shame tactic organizations whose only goal is to extract as much from the customer as possible without regard to that customer’s overall financial health,” Borden responded. “That is not us.” This approach, she argued, damages the relationship between the credit union and its members. Remynt, on the other hand, offers a digital-first experience that prioritizes flexibility and empowerment. “We have something that we’re offering that’s far greater, because we’re offering, first off a digital-first, but not a digital-only approach for people to go online and resolve debt on their own terms.”
This includes allowing members to set their own payment plans, starting as low as $10 a month. “People often don’t want to talk to somebody; they want to be able to go online, set their settlement, set their payment plan. They want flexibility,” Borden pointed out.
Beyond just collecting payments, Remynt provides members with personal financial management tools, budgeting resources, and even a community forum for support. This holistic approach, Borden believes, is key to fostering true financial resilience. "We are not just collecting from these members or consumers, but we’re actually providing them the tools so that as they are repaying their debt and getting a better financial footing, they’ll come out the other side better.”
Remynt’s focus on member well-being extends to its communication strategies. Unlike traditional agencies that often rely on aggressive phone calls, Remynt utilizes marketing automation and retargeting advertisements focused on aspirational messaging, not debt shaming. “We don’t do outbound phone calling,” Borden confirmed. “We instead leverage marketing automation tactics… our marketing and advertising isn’t ‘pay your debt now or you’re a bad person.’ It’s about the aspirational things… that financial freedom for the vacation you’d like to take, the home.” This approach, coupled with financial literacy resources and community support, aims to motivate members to take control of their finances, she added.
Borden's vision for Remynt goes beyond simply recovering debt. She sees an opportunity to reshape the entire debt collection landscape. “This is probably one of the last vestiges of the financial services industry that hasn’t had a lot of innovation,” she observed. She envisions a future where consumers demand a more empathetic and effective approach to debt collection, one that prioritizes financial well-being and long-term success. “And what we want to position ourselves as, this is the future of how debt collection should be done, and that consumers start to demand this kind of treatment.”