Receivables collection specialist PRA Group (NASDAQ:PRAA) (formerly known as Portfolio Recovery Associates)
continues to do reasonably well in a more challenging environment.
Concerns about new regulatory standards have shrunk the supply of
charge-offs available for purchase, while management's decision to
expand its legal collection efforts continues to require accelerated
spending ahead of revenue. On a more positive note, though, the Aktiv
deal is done and the company's collections estimates continue to
increase for recent vintages. Although the slower pace of call center
collections is a concern, PRA Group continues to offer worthwhile upside
at these levels.
Follow this link to the full article:
Sluggish Collections As PRA Group Begins A New Era
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