PRA Group, Inc. focuses on the detection, collection, and processing of both unpaid and normal-course accounts receivable originally owed to credit grantors, governments, retailers, and others. The company’s primary business is the purchase, collection, and management of portfolios of defaulted consumer receivables. These are the unpaid obligations of individuals to credit originators, which include banks, credit unions, consumer and auto finance companies, and retail merchants. It also provides fee-based services, including vehicle location, skip tracing, and collateral recovery services for auto lenders, governments, and law enforcement through PRA Location Services, LLC (PLS); revenue administration, audit and debt discovery/recovery services for local government entities through PRA Government Services, LLC and MuniServices, LLC (collectively ‘PGS’); and class action claims recovery services and related payment processing through Claims Compensation Bureau, LLC (CCB). In addition, with the acquisition of 100% of the equity interest of Mackenzie Hall Holdings, Limited, and its subsidiaries (PRA UK), the company expanded its contingent collection and purchase of defaulted consumer receivables businesses to the United Kingdom. Portfolio Acquisitions The company’s portfolio of defaulted consumer receivables includes a set of accounts that could be categorized by asset type, age and size of account, level of previous collection efforts, and geography. The company has acquired receivables of Visa, MasterCard, private label and other credit cards, installment loans, lines of credit, bankrupt accounts, deficiency balances of various types, legal judgments, and trade payables, all from various debt owners. These debt owners include major banks, credit unions, consumer finance companies, telecommunication providers, retailers, utilities, insurance companies, medical groups, hospitals, auto finance companies, student loan companies, and other debt buyers. In addition, it makes periodic visits to the operating sites of debt sellers and attends various industry events in an effort to develop account purchase opportunities. The company also maintains active relationships with brokers of defaulted consumer receivables. Fee-for-Service Businesses The company, through its subsidiaries, provides fee-based services, including vehicle location, skip tracing and collateral recovery services for auto lenders, governments, and law enforcement through its PLS subsidiary; revenue administration, audit, and discovery/recovery services for government entities through its PGS business; class action claims recovery services and related payment processing through its CCB subsidiary and contingent fees earned on the collection of finance receivables from its PRA UK subsidiary. PLS, through call center operations, performs national skip tracing, asset location, and collateral recovery services, principally for auto finance companies, for a fee. In addition, PLS locates clients’ inventories for a fee with a fleet of cars equipped with license plate recognition cameras. Regulation The company’s operations outside the United States are subject to the United States Foreign Corrupt Practices Act, which prohibits the United States companies and their agents and employees from providing anything of value to a foreign official for the purposes of influencing any act or decision of these individuals to obtain an unfair advantage, to help, obtain, or retain business. As a result of its acquisition of PRA UK and its subsidiaries, the company is subject to regulatory oversight under the Financial Services Act, which became effective in 2013. History The company was founded 1996. It was formerly known as Portfolio Recovery Associates, Inc. and changed its name to PRA Group, Inc. in October 2014.
pra group inc (PRAA:NASDAQ GS)
120 Corporate Boulevard
Norfolk, VA 23502
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