PRA Group, Inc., together with its subsidiaries, operates as a financial and business service company in the Americas and Europe. The company’s business focuses upon the acquisition, collection, and processing of both unpaid and normal-course accounts receivable originally owed to credit grantors, government entities, and others. Its primary business is the purchase, collection and management of portfolios of nonperforming consumer loans. The accounts the company acquires are the unpaid obligations of individuals owed to credit grantors, which primarily include banks and other types of consumer, retail, and auto finance companies. The company also provides various fee-based services, such as contingent collections of nonperforming loans in Europe; vehicle location, skip tracing and collateral recovery for auto lenders, government entities and law enforcement; revenue administration, audit and debt discovery services for local government entities; and class action claims recovery services and related payment processing. The company owns 55% of the equity interest in RCB Investimentos S.A. (RCB), a master servicing platform for nonperforming loans in Brazil. RCB specializes in structuring, investing and operating receivable and credit-related assets. The company owns Aktiv Kapital that acquires and services nonperforming consumer debt throughout Europe and Canada. The company’s insolvency business consists primarily of purchasing and collecting accounts that are involved in a Chapter 13 bankruptcy proceeding from credit grantors based in the United States. During 2014, the geographic footprint of the Insolvency business expanded into Canada and Europe. Portfolio Acquisitions The company’s portfolio of finance receivables includes a diverse set of accounts that could be categorized by asset type, age and size of account, level of previous collection efforts, payment history, and geography. The company acquired receivables of Visa, MasterCard, private label and other credit cards, installment loans, lines of credit, insolvency accounts, deficiency balances of various types, legal judgments, trade payables, and other types, all from various receivable owners. These sellers include major banks, credit unions, consumer finance companies, telecommunication providers, retailers, utilities, auto finance companies, student loan companies, and other debt owners. In addition, the company makes periodic visits to the operating sites of sellers of receivables and attends various industry events in an effort to develop account purchase opportunities. The company also maintains active relationships with brokers of nonperforming loans. The company purchases accounts from various debt owners. In Europe, the company purchases portfolios of paying, charged-off accounts. It purchases portfolios of accounts that are included in certain types of consumer insolvency proceedings. Given its United States focus historically, these insolvency accounts are typically those filed under Chapter 13 of the U.S. Bankruptcy Code and have an associated payment plan that generally ranges from 3 to 5 years in duration. The company purchases portfolios of insolvency accounts in both forward flow and spot transactions and, consequently, they could be at any age in the bankruptcy plan life cycle. 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, the company acquires consumer bankruptcies, which might also consist of small business loans with a personal guarantee. The company also reviews the geographic distribution of accounts within a portfolio because it has found that state-specific laws and rules could have an effect on the collectability of accounts located there. Fee-for-Service Businesses Through its subsidiaries, the company provides fee-based services, including vehicle location, skip tracing and collateral recovery services for auto lenders, governments and law enforcement via PRA Location Services, LLC (PLS); revenue admin
pra group inc (PRAA:NASDAQ GS)
120 Corporate Boulevard
Norfolk, VA 23502
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