Who is the Asset Acceptance Collection Agency?

April 6th, 2010 | Posted in Credit Card Debt

As collection agencies go, I have never heard anyone say anything positive about them. Asset Acceptance Collection Agency (AACA), also known as Asset Acceptance Capital Corporation, is no different.

AACA is a collection company which focuses on the primary, secondary and tertiary debt markets. For the layperson, this means that they purchase charged-off debt from creditors which has already been through one, two or three collection agencies’ attempts at collection. Online research indicates that AACA’s tertiary accounts (3rd time at collection) “make up about half of its portfolio.” http://www.hoovers.com/company/Asset_Acceptance_Capital_Corp/rtjrhci-1.html.

AACA likes to diversify by purchasing different kinds of debt. AACA’s debt portfolios include large holdings of consumer loan, credit card and utility debt. Approximately half of AACA’s debt is made up of credit card debt, such as MasterCard, Visa and Discover Card. It is interesting to note that charged-off debt is normally purchased for cents on the dollar. Collections begin once this debt is purchased.

AACA reports in its November 4, 2009, Quarterly Report, that “[s]ince these receivables are delinquent or past due, we are able to purchase them at a substantial discount. We purchase and collect charged-off consumer receivable portfolios for our own account as we believe this affords us the best opportunity to use long-term strategies to maximize our profits.” http://biz.yahoo.com/e/091104/aacc10-q.htmo. And, AACA does maximize its profits! In 2008, AACA reported $234.2M in revenue.

AACA is located in Warren, Michigan, and, in 2008, it employed 1,651 employees. It is estimated that AACA now employs over 1,700 employees. AACA is traded on the NASDAQ (AACC). As I wrote earlier, AACA’s revenue totaled $234.2M in 2008. Collection agencies are alive and well in this depressed economy!

As with most collection agencies, you can attempt to negotiate your debt with AACA. To do this, you would contact AACA, which should not be hard to do since they will likely be calling and sending you threatening letters, and see if they will accept a lump sum payment in full payment of the debt owed in exchange for a reduced amount due. Of course, this will only work if you have a lump sum of cash available to you.

If you don’t want to offer a lump sum payment or if AACA declines your lump sum offer, you can always try the conventional standby of monthly payments. The main drawback with attempting to arrange a payment plan is that AACA will likely be unmotivated to lower your total amount due.

All in all, it is best to try not to become entangled with any collection agency, if at all possible. If you do, try to extricate yourself as quickly as possible.

Asset Acceptance Ruined my Life. What I Did to Get Revenge against the asset acceptance collection agency.