Asset Acceptance Capital Corp. Announces FTC Consent Decree
Asset Acceptance Capital Corp. (NASDAQ:
a leading purchaser and collector of charged-off consumer debt,
announced today that its subsidiary, Asset Acceptance, LLC, has resolved
an FTC investigation of the...
Asset Acceptance Capital Corp. (NASDAQ: AACC), a leading purchaser and collector of charged-off consumer debt, announced today that its subsidiary, Asset Acceptance, LLC, has resolved an FTC investigation of the Company’s practices under the Federal Trade Commission Act, Fair Debt Collection Practices Act and Fair Credit Reporting Act. As part of the consent decree Asset Acceptance, LLC has agreed to undertake industry-leading consumer protection practices and to pay a civil penalty of $2.5 million. The consent decree ends an FTC investigation begun in February 2006, without any admission by Asset Acceptance of the FTC’s claims. The Company does not expect the operational requirements of the consent decree to have a material adverse effect on its business. Rion Needs, President & CEO, stated “Asset Acceptance is an industry leader in the amount of information we give consumers. This agreement gives consumers even more visibility into how we will work with them and sets new standards for the industry. We are pleased to have this matter behind us, and to have clarity on the FTC’s policies and expectations of the debt collection industry. As we have already implemented many of the requirements of the consent decree, we now welcome the opportunity to work with the FTC to make these measures the new standards in debt collection.” The Company had previously recorded accruals related to the $2.5 million settlement of $1,250,000 in the fourth quarter of 2010 and $1,250,000 in the third quarter of 2011. For more information on the consent decree, please visit www.AssetAcceptance.com for a list of frequently asked questions. About Asset Acceptance Capital Corp. For 50 years, Asset Acceptance has provided credit originators, such as credit card issuers, consumer finance companies, retail merchants, utilities and others an efficient alternative in recovering defaulted consumer debt. For more information, please visit www.AssetAcceptance.com. Asset Acceptance Capital Corp. Safe Harbor Statement This press release contains certain statements, including the Company's plans and expectations regarding its operating strategies, charged-off receivables, collections and costs, which are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include reference to the Company’s presentations and webcasts. These forward-looking statements reflect the Company's views, expectations and beliefs at the time such statements were made with respect to such matters, as well as the Company's future plans, objectives, events, portfolio purchases and pricing, collections and financial results such as revenues, expenses, income, earnings per share, capital expenditures, operating margins, financial position, expected results of operations and other financial items. Forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“Risk Factors”) that make the timing, extent, likelihood and degree of occurrence of these matters difficult to predict. Words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “should,” “could,” “will,” variations of such words and similar expressions are intended to identify forward-looking statements.