House of Paine

debt buyers inc

  bottom feeding can have 
     a  fairly nice 
                 bottomline 





========================


over view:

"Between 1995 and 2004,
 the  debt buying industry 
grew from purchasing 
$12 billion worth of consumer debt
 to $77.2 billion,
 last year 
debt buyers paid 
an average
 of 5.4 cents 
for every dollar
 of unpaid debt"

"For some firms,
 returns can run as high as
 five times the amount they paid
 for the debt"

example:

" Portfolio Recovery Associates,
 a nine-year-old Norfolk VA firm 
that went public in November 2002.
Since its inception
 the company 
-- whose motto is 
"giving debt collection a good name" --
 has bought more than
 6.2 million customer accounts 
with a face value of $11.1 billion 
for $265.8 million,
 or 2.39 percent. 
To date, 
it has collected debts
 at a rate of 2.5 to 3 times
 the purchase price
 enabling the firm's revenue 
to grow from $6.8 million in 1998
 to $113.4 million in 2004

 In that same time period, 
profits increased to $27.5 million 
from $402,000"

hhhhmm
net  operating margin of 20% plus 

return on investment now  maybe 10%......

   its a living ....