While it is always difficult to predict the availability of additional portfolios, it is our belief that the market for slightly distressed credit card portfolios will still be strong for the next several months. Banking consolidation often provides an impetus for institutions to “clean up” their portfolios, which they might not otherwise do in a normal environment. We believe our experience and confidence in this market allows us to offer attractive pricing to portfolio sellers. Some institutions that have historically relied on deposits for funding have also felt pressure to reduce the size of their credit card portfolios for regulatory reasons. We are confident we are as well positioned as any company in the country to purchase these distressed portfolios.
Jefferson Capital
Jefferson Capital is the part of our business that purchases and collects charged-off receivables portfolios. As with our distressed portfolio purchasing activities, it’s difficult to predict the volume of business that will be available for purchase at a return hurdle that makes sense for us. We have the infrastructure in place to succeed in this part of our business, and more importantly, we have the management team in place to allow us to succeed. There are several competitors in the market, but many of our senior managers helped to create this industry during the early 1990’s while at other companies, and we are very confident in our ability to grow and prosper in this area.
Our business has evolved over the last several years. We believe one of the hallmarks of a good management team is its ability to adapt to change and take advantage of new opportunities. We recognize that our core competency is our ability to create value by providing financial services and products to the broad base of American consumers who are often overlooked by the more traditional banking institutions. Over the years, there have been numerous companies that have succeeded in this effort, then expanded beyond their scope of competency in order to chase growth.
Conversely, CompuCredit is solely focused on those consumers in our market space who are and continue to be underserved by others, and who need our financial services and products the most. Our customer surveys tell us that our customer base wants and appreciates our products. We are absolutely convinced that by offering an attractive product to consumers, giving them excellent customer service and actively managing our continuously evolving relationship with them, we have the right recipe for success. We are very excited about the prospects for our business, and we will continue to seek additional product and service opportunities for our customer base, in order to be “the” provider for financial services and products to the underserved market.
Thank you for your interest and investment in our Company.
Sincerely,
David G. Hanna
Chairman and Chief Executive Officer
Richard R. House, Jr.
President