Debt collectors are hardly popular, but the reality is that they fill a critical niche in the credit cycle and ultimately keep rates lower than they would otherwise be. Not surprisingly, the housing crunch and the resulting recession created a flood of defaulted receivables for Portfolio Recovery Associates (NASDAQ:PRAA) to buy.
Now, though, delinquencies are falling and U.S. households continue to deleverage. Can Portfolio Recovery continue to thrive by expanding its operations in areas like legal collections and bankruptcy and by out-executing the competition with better pricing discipline and operational excellence?
A Growing Player In The Industry
Portfolio Recovery has enjoyed exceptional growth across multiple metrics. Revenue has grown from $149 million in 2005 to nearly $600 million...
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