Asset Acceptance

Asset Acceptance is a trade name used by several companies owned by the parent corporation Asset Acceptance Capital Corporation, which has existed since the formation of the predecessor company in 1962. Asset Acceptance Capital Corp's main revenue-generating subsidiary is Asset Acceptance, LLC. Asset Acceptance is a debt buyer which means that its primary business is the purchasing of defaulted debts from lenders and subsequent collection of those debts through normal debt collection activities. The corporation is headquartered in Warren, Michigan.

Asset Acceptance Capital Corp. was a publicly traded company. The company reported net income of $4.2 million in the third quarter of 2010.[1]

By 2010 the Wall Street Journal reported that Asset Acceptance Capital Corp, Encore Capital Group, Asta Funding Inc., and Portfolio Recovery Associates were the "four largest publicly traded debt buyers" who purchased $19.6 billion in distressed debt in 2009 and are behind the explosion of lawsuits against consumers. According to Association of Credit and Collection Professionals these four debt buyers "typically recover three times what they spend buying debt."[2]

Per a press release of January 30, 2012, the Federal Trade Commission accepted a settlement against debt buyer Asset Acceptance that included a $2.5 million penalty over several charges including Asset Acceptance's practices regarding time-barred debt.[3][4]

In March 2013, debt collector Encore Capital Group agreed a deal to buy Asset Acceptance for $200 million.[5]

References

  1. ↑ Asset Acceptance Sees Gains in Collections, Revenue, Income in Q3; Debt Buying Up - insideARM.com | November 3, 2010
  2. ↑ Silver-Greenberg, Jessica (28 November 2010). "Boom in Debt Buying Fuels Another Boom—in Lawsuits". Wall Street Journal. Retrieved 23 December 2015.
  3. ↑ Under FTC Settlement, Debt Buyer Agrees to Pay $2.5 Million for Alleged Consumer Deception - Firm Also Will Notify Consumers with "Time-Barred" Debt That It Will Not Sue to Collect - http://www.ftc.gov/opa/2012/01/asset.shtm | January 30, 2012
  4. ↑ "Time-Barred Debts | Consumer Information". www.ftc.gov. Retrieved 2016-03-19.
  5. ↑ Reuters UK (6 March 2013). "Encore Capital buys Asset Acceptance Capital for $200 million". Reuters UK.

External links


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