Asset Acceptance LLC Operations
Asset Acceptance LLC is a major player in the debt acquisition market. Rather than collecting debts on behalf of an original creditor for a percentage of the settlements it obtains, Asset Acceptance purchases past-due consumer accounts for a fraction of the balance owed on them and becomes the new creditor for many consumers. For example, suppose you have a $5,000 credit card balance and haven't made a payment for one year. Your credit card company may decide to sell the account, or the unconditional right to collect on it, for $100. As the new creditor, Asset Acceptance can then pursue a lawsuit against you and ultimately place liens on your property and garnish your wages. It may also bypass the costs of litigation and negotiate a settlement with you to pay $1,000, for example, instead of $5,000. As long as Asset Acceptance collects more money from you than it pays the credit card company for the account and spends on collection activities, the company earns a profit. The risk to Asset Acceptance, however, is that it collects nothing.