Record Collections for Asset Acceptance

MI-based Asset Acceptance Capital reported that first quarter revenues were essentially flat compared to one-year ago at $67.3 million. The purchaser and collector of charged-off consumer debt also reports that net income for the quarter dropped 21% to $9.9 million. However, first quarter cash collections of $95.9 million was the highest single-quarter cash collections in the 45 year history of the Company. Purchased receivable revenues declined by $0.5 million due to higher amortization rates on 2006 purchases and a $4.5 million net impairment charge on purchased receivables. During the first quarter, the Company invested $36.6 million to purchase charged-off consumer debt portfolios with a face value of $772.0 million, representing a blended rate of 4.74% of face value. This compares to the prior-year first quarter, when the Company invested $26.3 million to purchase consumer debt portfolios with a face value of $723.9 million, representing a blended rate of 3.63% of face value. All purchase data is adjusted for buybacks. For complete details on Asset Acceptance Capital’s first quarter performance visit CardData ([www.carddata.com][1]).

AACC REVENUES
1Q/06: $67.4 million
2Q/06: $66.8 million
3Q/06: $59.2 million
4Q/06: $61.5 million
1Q/07: $67.3 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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Passion Drives Most Business Owners

The first major survey on “Gen Y” and “Baby Boomer” entrepreneurs reveals that both generations feel that America is worse off now than when they were kids. The “OPEN Ages” survey from American Express also found that passion, rather than money, fuels the success and entrepreneurial drive of both generations. However, in the area of risk, 72% “Gen Y” entrepreneurs say they like to take risks compared to just over half of “Baby Boomers.” The research found that on average both groups spend 10 hours per day working on business, and typically conduct some type of business activity 6 out of 7 days.The generations differ on America’s leadership in technology innovation with only 38% of “Gen Y” believing that the U.S. is the most technologically advanced country in the world compared to 57% of “Baby Boomers.” Surprisingly, the majority of both generations agree that raising minimum wage would not hurt small businesses.

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PartsCards GE Business MasterCard is Promoted

ATCO Parts PartsCards is promoting commercial credit cards to their business customers through a relationship with GE Money – Corporate Payment Services. Under the agreement, PartsCard is promoting a co-branded version of the “CPS Productivity MasterCard” to middle market and small business customers nationwide. PartsCard provides the option to purchase parts, tools, paint, body, and equipment and other business-related items from any vendor accepting MasterCard. The Productivity Card’s suite of features helps companies streamline their purchasing and payment processes and control costs. PartsCard, a division of ATCO Parts, was created to support the national sales of the co-branded “Productivity Business Card”. GE Money – Corporate Payment Services, the commercial card unit of GE Money – Americas, develops and markets corporate bank cards and e-settlement tools designed for small-, medium- and large-sized companies and organizations. Cards are issued by GE Capital Financial Inc.

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Portfolio Recovery Q1 Profits Rise 20%

VA-based debt purchaser Portfolio Recovery Associates reports that first quarter net income rose 20% to $12.9 million. Total revenue increased 19% to $54.0 million in the first quarter. Cash collections rose 15% to a record $67.3 million in the quarter. The Company purchased $2.3 billion of face-value debt during the first quarter for $39.6 million, the second-largest amount the Company has spent on debt acquisitions in a single quarter. This debt was acquired in 26 pools from 15 different sellers. PRAA noted that productivity, as measured by cash collections per hour paid, the Company’s key measure of collector performance, stands at a record $155.91 for the first quarter, up from $146.03 for all of 2006. For complete details on Portfolio Recovery Associates first quarter performance visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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Nivea Uses ATMs for Gender Targeted Ads

Nivea has launched a gender-targeted campaign with ATM:ad, part of the
UK-based i-Design multimedia group that uses new user-profiling and
gender-targeting features to enhance the existing capabilities of
ATM:ad. The campaign for “Nivea for Men” will employ each of ATM:ad’s
4-modules – one aimed at men and one aimed at women. When the customer
inserts the card, ATM:ad identifies the gender and plays appropriate
content during transaction and thank you modules as well as on the
receipt that will feature reminders of the Nivea
campaign.

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SEPA To Benefit 490 Million Customers

SEPA’s solution to reduce payment costs and allow for secure debit
payments with single payments area will cut costs for 490 million
customers throughout Europe. This will provide customers with the ability to make payments anywhere in Europe with the same convenience as
paying in their home country. Adoption of the “PSD” solution by the European Union is what created a common legal framework in which SEPA operates. The popularity of “Maestro” by Master Card is an indicator of the eminent success of SEPA, used by 50% of Europeans.

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OBERTHUR 1Q/07

Paris-based Oberthur Card Systems reported that its payment smart card volume rose more than 48.5%, compared to one-year ago, to 37.6 million euros, with 27.5 million units delivered in the first quarter. Overall, first quarter revenues increased 15% to 133.8 million euros. During the quarter, Oberthur delivered over 80 million microprocessor cards, a 44.5% gain over one-year earlier. The strong European activity performance in payment cards was offset by a significant reduction in the gift card personalization demand in the USA. The whole payment segment, which represented 53% of Oberthur Card Systems for first quarter sales, amounted to 71.0 million euros, a 13.7% increase compared to 1Q/06. The conventional card business slowed down as expected with total sales amounting to 14.1 million euros. Oberthur notes that average selling prices seem to have entered a stabilization phase in all market segments. For complete details on Oberthur’s first quarter performance, visit CardData (www.carddata.com)

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FundsTech & Symelation Ink a Debit Card Deal

FundsTech has announced its agreement with Symelation to
provide a pre-paid debit card solution in South Africa. Due to the fact that
an estimated 13 million in South Africa do not have bank accounts, it is a
market with high potential in the pre-paid market. Furthermore, it is
estimated that 6 million South Africans are sending away over R12
billion ($2 billion U.S.) in cash annually. The partnership hopes to curb
this and compliment the government’s drive toward the economic
advancement of smaller, black-owned enterprises.

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