OAKLAND — November 7, 2019 — Resolve Innovations, Inc., a company founded to help people in financial distress, today announced that it has reincorporated as a Public Benefit Corporation, becoming one of nearly 5,000 companies that have modified their obligations to shareholders, committing to higher standards of purpose in their business. To put it simply, Resolve has committed to ensuring that the interests of consumers are at the core of its operating principles — as opposed to holding profits as its one and only north star.
“Purpose, accountability and transparency have been baked into Resolve’s DNA since we founded the company in 2017,” said Alex Mooradian, CEO of Resolve. “The move to become a Public Benefit Corporation is a critical part of our evolution as a business that puts people over profits. This will allow us to create long-term value for all our stakeholders, including investors, employees and most importantly, the consumers we help every day.”
The Public Benefit Corporation (PBC) is a governance model that broadens the perspective of traditional corporate law by incorporating values such as purpose, accountability and transparency into their business model. PBCs are for-profit companies that are obligated to consider the impact of their decisions on society, not only shareholders.
Resolve’s mission is to help people in financial distress navigate their way out of debt and back to financial health. The company offers unbiased advice, technology that makes financial decisions easier, helpful educational content and referrals to debt relief professionals who are held to a high standard of integrity and transparency. Three core values are at the heart of Resolve’s operations and align with the mission-driven purpose of a PBC:
- Trust: From educational content and high-tech know-how to partners who offer the best service at the lowest price, Resolve empowers people to break free from debt.
- Expertise: With decades of combined experience in finance, Resolve’s debt experts are committed to sharing their knowledge to help consumers choose their own path to financial health.
- Fairness: Unlike many traditional debt relief companies, Resolve operates with complete transparency — about pricing and about every available option to improve one’s financial situation.
Reincorporating as a public benefit corporation is both a strategic business decision for Resolve and a timely one for consumers, as stories from major media outlets uncover some hard truths about debt settlement companies. Some prey on struggling consumers, often leaving them worse off, with “high fees, damaged credit scores and unexpected income-tax bills.”
“Unfortunately, the financial services industry — specifically, the debt relief industry — is full of companies looking to take advantage of people who are under a heavy burden of debt,” said Mooradian. “Many of the solutions they sell are commission-based and difficult to understand. Some of their practices are downright deceptive. We founded Resolve to disrupt this unethical industry with a responsible alternative. And now with our status as a public benefit corporation, we are demonstrating to the public that we are walking the walk.”
Resolve joins the ranks of a rising tide of companies — both high-profile companies and startups alike — who have become PBCs. Examples that have become household names include Kickstarter, Plum Organics, King Arthur Flour, Etsy and Patagonia. Other fintech startup companies include Lemonade, Inc., Summer and Savi.
Resolve helps people in financial distress navigate their way to financial health. Consumers can use Resolve to explore all their options. We provide unbiased educational resources, tools, customized action plans and referrals to an integrated network of honest and affordable debt relief service providers. The providers in the Resolve Network — negotiators, attorneys, counselors and other debt experts — are available to consumers should they wish to use them. Visit helloresolve.com for more information.
About Public Benefit Corporations (PBCs)
A PBC is a for-profit corporation with modified corporate governance provisions. PBCs make additional commitments to higher standards of purpose, accountability and transparency:
Purpose: PBCs commit to creating public benefit and sustainable value in addition to generating profit. This sustainability is an integral part of their value proposition.
Accountability: PBCs are committed to considering the company’s impact on those materially affected by its conduct as well as its stockholders’ economic interests and its social or environmental purpose.
Transparency: PBCs are required to report regularly to stockholders, which may be made publicly available, on how the company is considering and balancing these interests. Visit benefitcorp.net for more information.