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Citing a reduction in cash collections, Asset Acceptance Capital Corp. yesterday reported a net loss of $1.6 million for the third quarter ended Sept. 30; the debt buyer generated net income of $3 million during the same period a year ago. Total revenues decreased 18.3%, to $47.7 million from $58.4 million. Asset Acceptance is the fourth-largest debt buyer in the United States with more than $234 million in revenue from purchased debt in 2008, according to research conducted by Collections & Credit Risk, a CardLine sister publication. The Warren, Mich.-based company, which primarily purchases credit card accounts, bought $1.6 billion in face-value charged-off consumer receivable portfolios for $37.2 million during the third quarter. During the same quarter last year, the company spent $35.6 million to buy debt with a face value of $718.8 million. The company reported cash collections of $77.8 million for the third quarter, a 14.3% decrease from $90.8 million a year ago. "Our cash collections during the quarter, particularly on older-vintage portfolios, were unfavorably impacted by the ongoing macroeconomic landscape that continues to hinder consumers' ability to repay their obligations," says Rion Needs, Asset Acceptance president and CEO.
