NCO Aquires bankrupt RMA

[Feel violated]

I see recent news that RMA, now in chapter 11 bankruptcy will probably be aquired by NCO using sections 363 and 365. Complex deal that will take awhile to settle.

We all know that NCO was spanked by the Feds lately, what I can't seem to find is why RMA went bust.

[DocDon]

I love how they call junk debts "portfolio assets". So they're going to purchase not only RMA's, but also it's affiliates' folios for $118.8M... that's chicken feed.

[Feel violated]

As someone who is fairly new to this credit thing, I note a very disturbing trend on these boards. One asks a specific question and you get some other answer.

I asked why did RMA go bust, I get an answer of NCO aquires its assets for 118.8 million; a fact I laready knew. While its horrible to realize that those

previously hassled by RMA may now get to do it over again with NCO, it does zero to answer the question of why RMA went bust in the first place.

[DocDon]

Others may not have known that information so I threw it out there. I don't think that's very disturbing at all, and certainly not a "trend" on this board. I think we do a fine job of answering members' questions (but I'm biased....).

Go look at their BK filing - it may give a better indication. You can also check the FTC site to see if there were any actions taken against them that may have led to this situation.

[c m chase]

As someone who is fairly new to this credit thing, I note a very disturbing trend on these boards. One asks a specific question and you get some other answer.

Odd thing to say.

You didn't ask a specific question. Heck, you didn't even ask any question...you just made a comment. No need to be hateful.

[Feel violated]

No, I did not ask this question in a hateful manner but my comment stands.

When you ask a specific question one should expect a specific answer, not some comment on a side issue that may or may not be relevant.

But to remove any doubt let me rephrase the question.

"Does anyone have any knowledge to share with us on why RMA went Bust?"

Can I make this question any clearer?

In terms of comments, we all know that RMA was a junk debt buying collection agency by side line or main advocation. And while most junk debt buying collection agencies have been growing at about 30% a year, it then becomes interesting to see one go belly up. Pardon me if I don't attend the funeral of a CA that never bothered me. But surely someone on this board has researched the cause of death and can share this information with us.

Without all being forced to independently research?

[Revco]

Just to lighten things up in here, the answer is because I didn't pay the $406 that they tried to collect from me for my old Sears account.

I found this from a press article I found about it. The issue appears to be that the company would appear more attractive for sale under bankruptcy than than a non-bankruptcy status. Basically, this means they were knee deep in debt and NCO was assigned to collect.

"Commenting on the acquisition, Dennis Cunningham, Chairman and Chief

Executive Officer of RMA, stated, "Over the past several years RMA has focused on growing and positioning itself as one of the leading providers of debt collection and accounts receivable management services. Earlier this year, we announced to our employees, clients and investors that we were exploring strategic alternatives for the business. Through this process it became obvious that utilizing the appropriate provisions of the Bankruptcy Code is the most efficient way to complete a sale of RMA. By entering Chapter 11 with a definitive agreement in place with NCO, we believe we will be able to work swiftly to secure creditor and court approval of the transaction with NCO with the least amount of disruption to our clients and our employees. In addition, the Chapter 11 process will provide a platform to entertain any higher and better offers so as to maximize the return to all creditor constituencies."

[DocDon]

No, I did not ask this question in a hateful manner but my comment stands.

When you ask a specific question one should expect a specific answer, not some comment on a side issue that may or may not be relevant.

But to remove any doubt let me rephrase the question.

"Does anyone have any knowledge to share with us on why RMA went Bust?"

Can I make this question any clearer?

Ya know what? Your attitude stinks. That's about as clear as I can make it.

Not sure what you're expecting to receive for free, but I apologize for interjecting a comment to help other members who may not be all that familiar with JDB's. And contrary to what you may believe I actually took the time to see what I could dig up on RMA....

Maybe you should check out some consumer advocacy sites - seems to me that's your biggest issue - most of your posts are about "fixing the system".

[DocDon]

Just to lighten things up in here, the answer is because I didn't pay the $406 that they tried to collect from me for my old Sears account.

I found this from a press article I found about it. The issue appears to be that the company would appear more attractive for sale under bankruptcy than than a non-bankruptcy status. Basically, this means they were knee deep in debt and NCO was assigned to collect.

That was kinda the point of my post - these debts are being sold like scrap metal, which means NCO knows they're (RMA) having a problem trying to collect on the "portfolio assets" (as they like to call them). They basically bought garbage to begin with and couldn't produce results IMHO....

[KentWA]

As someone who is fairly new to this credit thing, I note a very disturbing trend on these boards. One asks a specific question and you get some other answer.

I asked why did RMA go bust, I get an answer of NCO aquires its assets for 118.8 million; a fact I laready knew. While its horrible to realize that those

previously hassled by RMA may now get to do it over again with NCO, it does zero to answer the question of why RMA went bust in the first place.

I have to disagree. Maybe because you are new you have not noticed very important trend here on these boards. There is tons and tons of information that can be pieced together for most situations to help out the most people. If people only answered specific questions that pertained to a specific situation, the boards would be of no use to most people.

I personally have found some gold nuggets in the threads that seem to wander all over the place. If a person needs specific advice to a specific situation they should not be here, but in their lawyers office. If they need as much information and layman opinions as possible to help them move ahead on their own, this is a good place to come.

[admin]

Hang in there with us. We'll help ya out whenever we're able. Also, sometimes we like people to do a little investigation to help with the learning process. If we are vague, we aren't refusing to answer the question.

[Feel violated]

To Doc Don who posted my attitude sucked, you were on target. Its you I owe an apology to. I hope yu can accept my apology and chalk it up to frustration with the entire rotten credit system.

This entire web site has been a lifesaver to me when I was contacted by a junk debt buying collection agency in what I feel was little more than extortion attempt. The knowledge to be gained here is incredable and most topics are covered multiple times.

Right now, I feel very sad. A new poster in this forum came here too late, this person got ripped off by a junk debt buying CA before coming here, and last time I checked he had 28 posts helping him. Really amazing in one day especially since this new user did not have to troll back and find the old posts. Many posters essentially retyped old posts to tailor it to this new posters needs. Truly amazing how much help and the dedicated people to be found here. I just wish I knew enough to really help.

I do still maintain that the credit system needs reform especially in regard to junk debt buying CA's. The question still remains in my mind, do we as a collective we try to reform the credit system or do we simply help the semi-infinite new victims. I say we can do both.

[rockbottom3]

Damn I just sent RMA a DV on july 7th . Now what? They were past SOL or will be soon DATE was 6/00 I believe for last activity. Wh ich is when I closed the account.

[KentWA]

A little more info from my reading and digging. I think RMA went the route they did so they could pass along their "Portfolio" without any liability. Usually when a company buys the business of another company along comes any liability which is probably rather large with a JDB. Through BK they are only buying the assets and not the business.

So now NCO can persue attempts at collection with no worries about past liabilities from the actions of RMA. SO if you had something listed with RMA, like I did you are going to have to go round and round again.

[IHateCAs]

To answer the guys question, they went bust because they couldn't pay their attorney fees.

[Overwhelmed]

Is RMA the same as Rskmngmnt? I have a collection from them on my TU report that I paid months ago and they still have it reported as unpaid. I called them and they said it would be taken care of, back in May, and I still see it listed as unpaid:( I finally disputed it with TU and I haven't gotten the results back yet on it.

[IHateCAs]

RMA = Risk Management Assoc