Traditional Debt

We prefer to the purchase of non-bankrupt, charged-off consumer accounts as our traditional debt business. Once accounts are purchased, we sort them and attempt collection using a variety of techniques. We optimize our collections by primarily relying on our own call centers. Proper underwriting of these accounts is difficult and requires extensive knowledge of the characteristics that predict cash flow. This knowledge is applied to a wide combination of customer demographic characteristics. Our highly experienced statisticians and analysts estimate the value of each account using models built on performance data gathered from over 1,000 purchased portfolios. We have developed an enviable track record of being able to accurately predict results. We believe that this has given us a competitive edge in pricing portfolios and has helped us to avoid unnecessary portfolio write-downs based on performance deviation.