Step 1
Agreement
Companies interested in a capital solution may start with an outsourcing arrangement with Latitude Subrogation Services, LLC to align both parties' interests and to understand the true value of portfolios.
Step 2
ARV
Once a portfolio is identified, it is scored to arrive at the Anticipated Recovery Value (ARV).
Step 3
Bid
Latitude Capital Solutions will provide a bid to purchase the recovery rights up front. Modifications may include examining closed files, and/or future recoveries with a model that includes an advance of funds, with gain-sharing on the back-end of collection.
What about Insured Deductibles?
Because the various states' insurance departments regulate interactions and protection of consumers, the deductible amount is handled the same way as in an outsourcing relationship involving subrogation recovery. The deductible is usually pro-rated, based on state laws, by the actual recovery received and returned to the insured.