UPDATE 1-Asset Acceptance Capital Q2 earnings fall

(Recasts; adds details, share price)

Aug 5 (Reuters) - Asset Acceptance Capital Corp (AACC.O), which buys charged-off consumer debt, reported a 75 percent drop in quarterly earnings, below analysts' expectations, hurt by a higher amortization rate and an impairment charge.

For the second quarter, the company reported net income of $2.1 million, or 7 cents a share, compared with $8.3 million, or 24 cents a share, a year ago.

Revenue fell 14 percent to $56.5 million.

Analysts on average were expecting earnings of 19 cents a share, before special items, on revenue of $65.1 million, according to Reuters Estimates.

The company's amortization rate or cash collections applied to principal, rose 41 percent during the quarter, compared with 31 percent, a year ago.

Asset Acceptance also reported a net impairment charge of $5.0 million, or 10 cents a share during the quarter.

Shares of the Warren, Michigan-based company closed at $11.33 Monday on Nasdaq. (Reporting by Shradhha Sharma in Bangalore; Editing by Bernard Orr)