Atlanta Equity, the Georgia-based private equity firm, acquired Consumer Financial Services (CFS), a Connecticut-based provider of delinquent account services.

Terms of the deal were not publicized and calls seeking comment were not returned by press time.

Along with the capital injection, CFS will see a new chief executive. Michael Levison, formerly the CEO of Atlanta-based Coverdell & Co. and also former CEO of ReMark Americas, joined the company as its new CEO.

Doug Melson, operations chief at the target, will remain on with CFS under Atlanta Equity’s management. Martin Melson, the company’s founder, will remain on with the company as a board member and strategic advisor.

Gerry Benjamin, who works as co-manager of Atlanta Equity, said the deal and the capital the PE firm is injecting its target with, will position CFS to expand aggressively.

Arnall Golden Gregory served as legal counsel to Atlanta Equity, with acquisition financing provided by BB&T and Peachtree Equity Partners. Whitman Breed Abbott & Morgan served as legal counsel to CFS and the Melson family.

Atlanta Equity closed in late 2008 its first fund for $109 million. Most of its LPs are based in the Southeast. Already, it has coordinated a recap of Empower Software Solutions, bought controlled temperature warehouse company Richmond Cold Storage and, two years ago, apartments contractor NRI Construction Inc.

Lately, private equity firms have increasingly bought into financial services companies, and more deals in 2010 have originated concentrating on delinquent payment services and bankruptcies. Parthenon Capital Partners acquired a stake in loanDepot, an online mortgage origination company, earlier this year and a merger was completed between special purpose acquisition company Chardan 2008 Acquisition Co. and DAL Group Inc., a provider of mortgage processing services in Florida.

Financial services industry