VEDC Reports Success in Collecting on Bad Debts

The Valley Economic Development Center said today that it has reduced the outstanding balances in the former Los Angeles Community Development Bank loan portfolio by $5 million to $15 million and cut the delinquency rate to 28 percent from 75 percent since taking over the account. The LACDB, formed in response to the 1992 riots, closed its doors amidst a rising financial shortfall, and management of its portfolio was transferred to the VEDC in 2004. Vladimir Victorio, VEDC director of lending, said that the agency has been working with the borrowers to structure repayment plans. “VEDC’s work on the LACDB portfolio has put it back on track,” Victorio said. “Not only has our success in collecting on defaulted loans maximized the city’s recovery efforts, it has been extremely cost effective for them as well.”