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United States

Profile: PRA Group Inc (PRAA.O)

PRAA.O on Nasdaq

36.35USD
26 May 2017
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PRA Group, Inc. (PRA Group), incorporated on August 7, 2002, is a financial and business services company with operations in the Americas and Europe. The Company's primary business is the purchase, collection and management of portfolios of nonperforming loans. The Company operates through the account receivables management segment. It also provides fee-based services, such as vehicle location, skip tracing and collateral recovery for auto lenders, government entities and law enforcement; revenue administration, audit and revenue discovery/recovery services for local government entities; class action claims recovery services and purchases; servicing of consumer bankruptcy accounts in the United States, and contingent collections of nonperforming loans in Europe and South America.

The Company's portfolio of nonperforming loans includes a set of accounts that can be categorized by asset type, age and size of account, level of previous collection efforts, payment history, and geography. It has various receivables of Visa, MasterCard, private label and other credit cards, installment loans, lines of credit, deficiency balances of various types, legal judgments and trade payables. Sellers of nonperforming loans include major banks, credit unions, consumer finance companies, telecommunication providers, retailers, utilities, automobile finance companies, student loan companies and other debt owners. It purchases portfolios of accounts that are included in certain types of consumer insolvency proceedings. In Canada, the Company purchases Consumer Proposal, Consumer Credit Counseling and Bankrupt Accounts. In the United Kingdom, it purchases Individual Voluntary Arrangements, Company Voluntary Arrangements, Trust Deeds and Bankrupt Accounts. In Germany, it acquires consumer bankruptcies, which may also consist of small business loans with a personal guarantee.

The Company acquires portfolios of nonperforming loans from debt owners through auctions and negotiated sales. In an auction process, the seller will assemble a portfolio of nonperforming loans and will seek purchase prices from specifically invited potential purchasers. In a privately negotiated sale process, the debt owner will contact one or more purchasers directly, receive a bid, and negotiate the terms of sale. In either case, typically, invited purchasers will have already completed a qualification process that can include the owner's reviews of any or all of the purchaser's experience, reputation, financial standing, operating procedures, business practices and compliance oversight. It also acquires portfolios of nonperforming loans through either single portfolio transactions, referred to as spot sales, or through the pre-arranged purchase of multiple portfolios over time, referred to as forward flow sales. Under a forward flow contract, it agrees to purchase nonperforming loans from a debt owner on a periodic basis, at a price equal to a set percentage of face value of the nonperforming loans over a specified time period, generally from 3 to 12 months.

The Company acquires portfolios of nonperforming loans from debt owners through auctions and negotiated sales. In an auction process, the seller will assemble a portfolio of nonperforming loans and will seek purchase prices from specifically invited potential purchasers. In a privately negotiated sale process, the debt owner will contact one or more purchasers directly, receive a bid and negotiate the terms of sale. It also acquires portfolios of nonperforming loans through either single portfolio transactions, referred to as spot sales, or through the pre-arranged purchase of multiple portfolios over time, referred to as forward flow sales. Under a forward flow contract, it agrees to purchase nonperforming loans from a debt owner on a periodic basis, at a price equal to a set percentage of face value of the nonperforming loans over a specified time period, generally from 3 to 12 months.

A component of the Company's collections effort involves its legal recovery departments and the judicial collection of accounts of customers who have the ability, but not the willingness, to resolve their obligations. Depending on the balance of the receivable and the applicable local collection laws, it determines whether to commence legal action to judicially collect on the receivable. The legal process can take an extended period of time and can be costly, but when accounts are selected properly it also usually generates net cash collections that likely would not have been realized otherwise. The Company uses a combination of internal staff (attorney and support), as well as external attorneys, to pursue legal collections under certain circumstances.

In addition to the purchase, collection and management of portfolios of nonperforming loans, the Company provides fee-based services, including vehicle location, skip tracing and collateral recovery services for auto lenders and governments through PRA Location Services, LLC (PLS); revenue administration, audit, and revenue discovery/recovery services for government entities through PRA Government Services, LLC and MuniServices, LLC (collectively PGS); class action claims recovery purchasing and servicing through Claims Compensation Bureau, LLC (CCB); contingent collection of finance receivables through PRA Group Europe and RCB, and third-party servicing of bankruptcy accounts in the United States.

Company Address

PRA Group Inc

120 Corporate Blvd Ste 100
NORFOLK   VA   23502-4962
P: +1757.5199300
F: +1302.6365454

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