Portfolio Recovery Associates (NASDAQ:PRAA) operates in an industry Peter Lynch would call "distasteful", although I would personally disagree with that assessment. People incur debt and sometimes they can't pay it off. Creditors then sell that debt at a substantial discount, and the collection problem is handed to someone else.
The industry's reputation is not good, but much of that is due to non-compliant collectors. Those who do comply with laws and regulations are merely asking people to make good on their obligations.
Consumer Debt Overview
The business of consumer debt collection depends on many factors. Of course, the most important factor is the actual existence of consumer debt. The New York Federal Reserve publishes a quarterly report on...
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