NCO Group Loses $26.5 million in Q3 on Impairments and Restructuring

[Genenco]

November 14, 2008

NCO Group, one of the largest accounts receivable management firms in the world, said late Thursday that it lost money in the third quarter of 2008 on a large impairment charge on purchased debt portfolios and restructuring charges related to the acquisition of Outsourcing Solutions, Inc. (OSI) and other businesses.

Horsham, Pa.-based NCO reported a net loss of $26.5 million in the third quarter of 2008, compared to a net loss of $4.6 million in the same period a year ago.

(Read to the bottom though, you'll just spew when reading what they paid for 1.1 BILLION of collection notes)

(Mods, if you think I'm being too harsh, my apologies..I just loathe this collection group)

[treehugger1]

SO, $.031 or 3.1 cents on the dollar. This in the third quarter alone! Looks like their ARM (I read debt collection) is booming.

I would love it, if my big CC's would sell me my debt for 4-5 cents on the dollar. Could one set up their own accounts receivable business, buy debt (there own,) pay 4 - 5 cents on the dollar, satisfy the debt and not get a 1099? LOL

Granted, I would guess some of the purchased accounts are very old.

[Genenco]

I looked over that site and frankly, I'd LOVE to win a medium sized lottery. Then go and buy those portifolios and tell the person on the note "You owe $10,000, how about paying me $500 and calling it good?"

At 3.1 cents X $10,000 = 310 and I take $190 as profit...I think I'd be running to the bank quite often...And letting people off the hook for a minor amount instead of a crippling mark on their credit report...

Anyone else think this is nuts? (Besides me?)

[shabam]

Has anyone looked at the discussion section of that site? It has a forum for debt collectors. Reading some of their points confirms that playing with people's lives is basically a game for a lot of them, a revenue stream. I hope they buy my debt soon so I can file after that and leave them with the hot potato. Two can play their game.

It is interesting to read how some lawyers / clients have basically figured out how to catch them out and sue them for breaching FDCPA. Poor debt collectors

I also found another interesting site on there. http://www.debtorboards.com/

[BigJohn]

3.1 cents on a dollar is not bad. Can I buy mine back for 6.2 cents on a dolar?

[BigJohn]

Double the money.