IMGCAP(1)]
Debt buyer Asset Acceptance Capital Corp. yesterday reported net income of $3 million for the third quarter ended Sept. 30, a $4.7 million turnaround from the $1.7 million net loss it reported for the same quarter one year ago. Total revenues increased 11% to $58.4 million in the quarter, compared with revenues of $52.6 million in the third quarter of 2007. The company spent $36 million in the third quarter to buy charged-off consumer debt portfolios with a face value of $725.8 million, compared with $35.1 million to purchase portfolios with a face value of $1.9 billion. Asset Acceptance, the third-largest debt buyer in the United States, primarily purchases credit card accounts, according to Collections & Credit Risk, a CardLine sister publication. The Warren, Mich.-based company does not specify the percentage of debt purchases that involve credit cards. "The financial health of consumers continues to deteriorate. Unemployment is rising and credit card charge-offs continue to increase," Rion B. Needs, chief operating officer, said yesterday during a conference call with analysts. "Even as these factors pressure the broad economy, the current credit crisis may prompt more issuers to turn to charged-off receivables. We expect this will result in further downward pressure on pricing and we're well positioned to meet this demand," Needs said.
