Despite the Still-Weakened Economy, Debt Collector comes Out on Top
While millions of Americans must grapple in this difficult and topsy-turvy economy, some businesses continue to thrive. In fact, Portfolio Recovery Associates, Inc., a company that purchases, collects, and manages consumer debt, are reporting record-breaking profits.
Portfolio Recovery Associates, like other debt collectors, makes money by purchasing consumer debts from creditors, banks and other financial institutions. As defaulted debt or late pay debt increases, buyers and debt collectors like Portfolio Recovery Associates see their revenues rise as well. From 2009 to 2010, Portfolio Recovery Associates experienced increases in net income of 66% from $12.4 million to $20.6 million. At the end of their fourth quarter of 2010, Portfolio Recovery Associates’ total revenue rose 38% from 2009 for a record $100.8 million.
Isn’t it ironic if not more than a little bit aggravating that the success of debt collectors, like Portfolio Recovery Associates, has a banner year while most Americans struggle with loss of income, jobs and being choked by debt? Debt collection and debt buying are not on recession proof; they are recession successful. As Americans fight to pay off accumulated debt, collection agencies flourish.
Of course, someone needs to do the collecting, it is just that when collectors deal with so much business in response to market conditions, it makes one wonder if the abusive behaviors consumers complain about will rise as well and/or if all the FDCPA protections are being complied with . The next time you receive an aggravating or uncivil collection call, remember that you have rights, and you don’t have to tolerate abuse.
Portfolio Recovery , Asset Acceptance, Encore Receivable are all playing with public money, it is the biggest ponzi scam since Bernie Madoff, as long as the public money keeps coming in they can continue to lie about their earnings time and time again, and satisfy current investors. Other companies are just salivating to get in take the public money and get out ! Their tricky and creative accountants depend on them to keep buying so they can show increases in returns but fail to mention what their actual losses on these portfolio investments. Hopefully unlike Bernie they can out live this crime cycle . Only a matter of time my friends hopefully sooner than later . Trouble is when companies like this are so deep, heads are turned. When it does come out it will be a bloody mess for the people that still have their money in these companies. in the mean time buy, buy and buy, even out bid themselves just to get product in the door. My prayers go out to you investors, Hope you have some money saved in the cookie jar, when trying to get answers as how could this have happened. Again ! Ps. Investors make sure to check out what the top executives are taking out of the companies each week !
Comment by Thurston Howel on March 14th, 2011 at 1:00 pm