Re: collection agency

Posted by Paul (207.44.154.35) on February 29, 2004 at 22:43:00:

In Reply to: collection agency posted by jjazz555 on February 29, 2004 at 22:11:37:

Asset Acceptance pays 1.85 cents on the dollar for all their accounts.

From Asset Acceptance SEC Filing for its IPO October 2003
OUR BUSINESS
OVERVIEW
We are a leading purchaser and collector of charged-off consumer receivables in the United States. We purchase and collect defaulted or charged-off accounts receivable portfolios from consumer credit originators, primarily credit card issuers, consumer finance companies, retail merchants and telecommunications and other utility providers as well as from resellers and other holders of consumer debt. We have been purchasing and collecting charged-off receivables portfolios since the formation of our predecessor company in 1962. Charged-off receivables are the unpaid obligations of individuals to credit originators. We generally purchase the charged-off receivables from credit originators and other sellers of debt that were unsuccessful in collecting the underlying debt; consequently, we are able to purchase these receivables at a substantial discount to their face value. We currently do not collect on a commission or contingent fee basis. Rather, we purchase and collect charged-off accounts receivable portfolios for our own account as we believe this is the best use of our resources and that this affords us the opportunity to maximize our profits. Since January 1, 1990, we have purchased 627 consumer debt portfolios through August 31, 2003 with an original charged-off face value of $13.2 billion for a purchase price of $245.4 million or 1.85% of face value. On average, we have been able to collect more than three times the amount paid for a portfolio, as measured over a five-year period from the date of purchase.

• Asset SEC Filing

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