28405 Van Dyke Avenue
n/a
Warren, MI 48093
UNITED STATES
Tel. (586) 939-9600
Fax. (586) 446-7825
Industry: Consumer Finance
On the web: http://www.assetacceptance.com
Employees: 1,595
Asset Acceptance Capital Corp. engages in the purchase and collection of defaulted and charged-off accounts receivable portfolios. Charged-off receivables are the unpaid obligations of individuals to credit originators, such as credit card issuers, consumer finance companies, healthcare providers, retail merchants, telecommunications and other utility providers. Since these receivables are delinquent or past due, the company is able to purchase them at a considerable discount. It purchases and collects charged-off consumer receivable portfolios for its own account. These receivables are acquired from consumer credit originators, mainly credit card issuers, consumer finance companies, healthcare providers, retail merchants, telecommunications and other utility providers as well as from resellers and other holders of consumer debt. The company periodically sells receivables from these portfolios to unaffiliated companies. In addition, the company finances the sales of consumer product retailers. It currently has two operating segments, one for purchased receivables and one for finance contract receivables. The finance contract receivables operating segment is not material and therefore is not disclosed separately from the purchased receivables segment. Purchased receivables are receivables that have been charged-off as uncollectible by the originating organization and typically have been subject to previous collection efforts. The company acquires the rights to the unrecovered balances owed by individual debtors through such purchases. The receivable portfolios are purchased at a considerable discount (generally more than 90%) from their face values and are initially recorded at the company's acquisition cost, which equals fair value at the acquisition date. Financing for the purchases is mainly provided by the company's cash generated from operations and its revolving credit facility.
