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Recovery Associates Inc., a debt purchaser that buys and collects delinquent credit card portfolios, yesterday reported net income of $11.7 million for the second quarter ended June 30, a 3% increase from $11.4 million during the same period last year, according to the Norfolk, Va.-based company. Cash collections rose 6%, to $90.5 million from $85 million. The company also reported call-center collections of $50.1 million, a 7% increase from $46.9 million, and external legal collections of $16.5 million, a 27% decrease from $22.5 million. The debt buyer reported purchased bankruptcy collections of $19.6 million for the quarter, a 43% increase compared with $13.7 million a year earlier. The company paid $84.7 million to acquire 119 portfolios from 15 different sellers during the quarter. The face value of the purchased accounts totaled $3.38 billion. "Portfolio Recovery Associates completed the first half of 2009 with another solid quarter, despite the continued impact of a difficult economy on collections," says Steven D. Fredrickson, chairman, president and CEO. "Our collector workforce deserves a great deal of credit for driving record cash collections in this recessionary environment. The company's fee-for-service businesses demonstrated impressive growth in the second quarter, and portfolio acquisitions totaled a strong $85 million, building a solid foundation for growth in the years to come."
