We have been purchasing and collecting charged-off accounts receivable portfolios (“paper”) from consumer credit originators since the formation of our predecessor company in 1962. Charged-off receivables are the unpaid obligations of individuals to credit originators, such as credit card issuers including private label card issuers, consumer finance companies, telecommunications providers and other utility providers. Since these receivables are delinquent or past due, we purchase them at a substantial discount. We purchase and pursue collections on charged-off consumer receivable portfolios for our own account as we believe this affords us the best opportunity to use long-term strategies to maximize collections. We forecast our collections over a seven year timeframe, although we may continue to pursue and receive collections for more than seven years from the date of purchase. From January 1, 2006 through December 31, 2012, we purchased 966 consumer debt portfolios, with an original charged-off face value of $33.0 billion for an aggregate purchase price of $1.0 billion, or 3.17% of face value, net of buybacks. See Item 6, “Selected Financial Data”, on page 25 for detailed information on annual trends over the past five years. When considering whether to purchase a portfolio, we conduct a thorough quantitative and qualitative analysis to appropriately price the debt. This analysis includes the use of our proprietary pricing and collection probability model and draws upon our extensive experience in the industry. We have developed experience across a wide range of asset types at various stages of delinquency, having made purchases across more than 15 different asset types from over 85 different debt sellers since 2006. The delinquency stage refers to the date the debt was charged-off and the number of agencies that previously attempted to collect the debt. We selectively deploy our capital in the fresh, primary, secondary and tertiary delinquency stages, defined as:
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Company profile
Ticker
AACC
Employees
Location
Fiscal year end
Industry (SIC)
SEC CIK
Corporate docs
IRS number
800076779
Latest filings (excl ownership)
15-12G
Securities registration termination
24 Jun 13
25-NSE
Exchange delisting
13 Jun 13
8-K
Submission of Matters to a Vote of Security Holders
13 Jun 13
8-K
Completion of Acquisition or Disposition of Assets
13 Jun 13
425
Business combination disclosure
7 Jun 13
8-K
Entry into a Material Definitive Agreement
7 Jun 13
CT ORDER
Confidential treatment order
4 Jun 13
425
Business combination disclosure
3 Jun 13
425
Business combination disclosure
3 Jun 13
8-K
Asset Acceptance Capital Corp. Announces Merger Closing
3 Jun 13