In an economy which is still struggling to find a safe foothold after the widespread recession woes, one company is finally aiming to provide for a fair judgement for both sides in the constant tug-of-war.

Convoke Systems, an Information Management software firm, well-known in the Debt Collection and Recoveries industry, has a new plan in mind: to make the credit system more transparent, a move which will find favour with both consumers and creditors alike. And the driving issue which motivates them is ubiquitous- the recession leading to a huge numbers of credit card defaulters. But how exactly does Convoke Systems plans to carry out their plans?

According to an announcement on Sunday, the company has fixed a deal with Flybridge Capital and QED Investors for a $5.5 million Series B round of financing. On the cards are funding for a new product development, sales and marketing, and a few plans for market expansion.

Founder and President of Convoke Systems, Gary Portney talks about the funding, “Our mission is to fundamentally change the way information supporting debt is managed and moved throughout the industry. Today we are accelerating the delivery and transforming the accuracy of the information that debt buyers, servicers and collectors need when communicating with consumers and attempting to recover legitimate debt obligations.”

Currently, credit card companies sell the debt to collection agencies, whose job is to then follow-up on the defaulters. However, discrepancies in the paperwork make it tough to verify debts. Convoke Systems has come up with a seemingly good solution.

The firm proposes to solve this issue with a web-based platform that will validate ownership, keep track of a debt’s title and manage the supporting documentation. The financial reform bill which was passed last Thursday and the creation of the Consumer Financial Protectiov Agency will reinforce the company’s efforts in helping the creditors comply with a stricter regulatory environment.

The deal includes the addition of a few more minds onboard. Frank Rotman, QED investors partner and former Capital One exec, plus Jeff Bussgang and Matthew Witheiler from Flybridge Capital Partners, will be joining the Convoke Systems crew.

Jeff Bussgang, General Partner, Flybridge Capital Partners, shares Portney’s enthusiasm. He says, “We are thrilled to back Gary and the Convoke team. The company is coming to the market at a crucial time in the rapidly developing recoveries market. The lack of systems and standards results in a huge unmet need for the timely and accurate delivery of account data and the supporting information necessary to validate and verify consumer debt. Convoke is well-positioned to become the leading solutions and service provider for the recoveries marketplace and the focal point for consumer debt registration.”