Thoughts on using JDB's SEC K-10 against them??

[HoppinMad]

I have been pondering different approaches in developing affirmative defenses. All my motions, responses have to be submitted in brief form. I am intrigued with the idea of using the JDB (Plaintiff's) SEC K-10 report against them. For instance one states:

"We purchase and collect charged-off consumer receivable portfolios for our own account as we believe this affords us the best opportunity to use long-term strategies to maximize our profits. From January 1, 2000 through December 31, 2009, we purchased 1,090 consumer debt portfolios, with an original charged-off face value of $40.4 billion for an aggregate purchase price of $998.0 million, or 2.47% of face value, net of buybacks."

"Each potential acquisition begins with a quantitative and qualitative analysis of the portfolio. In the initial stages of the due diligence process, we review basic data on the portfolio’s accounts. This data typically includes the account number, the consumer’s name, address, social security number, phone numbers, outstanding balance, date of charge-off, last payment and account origination to the extent the debt sellers provide this data. We analyze this information and summarize it based on certain key metrics, such as, but not limited to, state of debtor’s last known residence, type of debt, and, time remaining on the credit bureaus and time remaining within the statute of limitations. In addition, we request the seller to provide answers to a questionnaire designed to help us understand important qualitative factors relating to the portfolio."

They go on to list PAGES and PAGES of Risk Factors. Dosen't this then lend to an assumed risk affirmative defense coupled with the rediculous profit margin of over 97% they sue for.

I respect everyone on here. Any thoughts or wording suggestions on how to incorporate their own info and use this against them?

[Prosay]

I have been pondering different approaches in developing affirmative defenses. All my motions, responses have to be submitted in brief form. I am intrigued with the idea of using the JDB (Plaintiff's) SEC K-10 report against them. For instance one states:

"We purchase and collect charged-off consumer receivable portfolios for our own account as we believe this affords us the best opportunity to use long-term strategies to maximize our profits. From January 1, 2000 through December 31, 2009, we purchased 1,090 consumer debt portfolios, with an original charged-off face value of $40.4 billion for an aggregate purchase price of $998.0 million, or 2.47% of face value, net of buybacks."

"Each potential acquisition begins with a quantitative and qualitative analysis of the portfolio. In the initial stages of the due diligence process, we review basic data on the portfolio’s accounts. This data typically includes the account number, the consumer’s name, address, social security number, phone numbers, outstanding balance, date of charge-off, last payment and account origination to the extent the debt sellers provide this data. We analyze this information and summarize it based on certain key metrics, such as, but not limited to, state of debtor’s last known residence, type of debt, and, time remaining on the credit bureaus and time remaining within the statute of limitations. In addition, we request the seller to provide answers to a questionnaire designed to help us understand important qualitative factors relating to the portfolio."

They go on to list PAGES and PAGES of Risk Factors. Dosen't this then lend to an assumed risk affirmative defense coupled with the rediculous profit margin of over 97% they sue for.

I respect everyone on here. Any thoughts or wording suggestions on how to incorporate their own info and use this against them?

Very interesting...thanks for the post

How about identifying the JDB to whom you are referring, as no doubt many of us may be dealing with this particular JDB at any given time... IMHO, the SEC K-10 reports filed by any JDB would support any question of "UNJUST ENRICHMENT" which might be raised before the court, especially if you have previously asked the proof of "valuable consideration paid" for your account.

The SEC K-10's and actual amount paid for the any account purchased would also support any question of "actual damages or INJURY" claimed by ANY JDB.

Or, we could always request the JDB to "send a copy of their SEC K-10, to support their claim of OWNERSHIP and damages or amount due to be verified by our inquiry DIRECTLY WITH THE SEC AND OFFICE OF THE CONTROLLER OF THE CURRENCY.

Thanks !

Edited March 23, 2011 by Prosay

[HoppinMad]

Here are the biggies. I qouted Asset Acceptance's from 2009 because that's the year they bought my account. The reports are VERY interesting reading!!

Asset Acceptance 2010 10-K http://www.sec.gov/Archives/edgar/data/1264707/000119312511056381/d10k.htm

EncoreCapital Group (Midland Credit Mgmt) 2010 10-K http://www.sec.gov/Archives/edgar/data/1084961/000119312511035293/d10k.htm

Portfolio Recovery Associates Inc 2010 10-K http://www.sec.gov/Archives/edgar/data/1185348/000095012311018695/w80903e10vk.htm

EDGAR Search page for any public company fillings (Sherman & LVNV Funding are private companies and don't file)

http://www.sec.gov/edgar/searchedgar/companysearch.html

[Prosay]

vERY GOOD...THANKS FOR SHARING !

[antiquedave]

I read through one of those last month and thought it was pretty interesting as well, they gave statistics on the people they dunned too.

Far too many people don't do anything at all, increasing that number is part of the denial of profit that the JDB's have to feel before anything can change.

[Prosay]

I read through one of those last month and thought it was pretty interesting as well, they gave statistics on the people they dunned too.

Far too many people don't do anything at all, increasing that number is part of the denial of profit that the JDB's have to feel before anything can change.

MY APPROACH TO THESE GUYS..

"PROVIDE ALL DOCUMENTATION..."ACTUAL AND FACTUAL" RELATED TO THIS ALLEGED ACCOUNT.

"The burden of proof lies with the affiant" PER Tenn code annotated.

[creditcrunched]

PRA 2010 10-K

"Legal cash collections generated by both our in house attorneys and outside independent contingent fee attorneys constituted approximately 24% of our total cash collections in 2009. As our portfolio matures, a larger number of accounts will be directed to our legal recovery department for judicial collection; consequently, we anticipate that legal cash collections will grow commensurately and comprise a larger percentage of our total cash collections."

I bet. Very good rate on return since no one shows up to defend themselves and it's an easy pay day for all parties involved.

"From our 1996 inception through December 31, 2010, we acquired 2,002 portfolios, representing more than 24 million customer accounts, with a face value of $54.8 billion for a total purchase price of $1.7 billion."

Usury, anyone?'

Thanks for the link, HoppinMad.

[HoppinMad]

Yes, Usury, but how do you incorporate that into an affirmative defense or argument in court. They can't deny it. If I figure what they paid for my account, 2.57$ charge off value, it's about $120, but suing for $6200.00! How can any judge think that's okay? That's like 98% interest/profit!

Also, I would think an assumtion of risk would apply as well.

Edited March 25, 2011 by HoppinMad

[HoppinMad]

Sorry 2.57% charge off value, not enough coffee yet this am

[jq26]

It isn't a valid defense. Sorry guys. You know the deal. They buy in bulk knowing that enough of the accounts will never be collected. They're not paying $0.0257 for each dollar in your account, they're paying that rate on the portfolio. And it doesn't matter. Debt is assignable and its almost always highly discounted for time value of money & collectibility. When it is discounted, it has no bearing on its validity.

You are much better off going at proof issues that usually arise when JDBs purchase debt.

[HoppinMad]

Well at the very least I would think it could help attack affidavit of debt and chain of custody. Still I think there is valuable usable info in there. I know Indiana case law states one business can't enter the records of another, it's hearsay. So this prospectus would most definately prove the records they are suing on are from another business per their own statements.

More to ponder on.

[fightemdontfold]

I clicked on Portfolio's one and wow, look at all of that study and analysis bent toward the buisness of parasitism and vulturism. The thing goes on for pages and pages.

If you want to know why we are so far behind where we used to be as a nation there you go, look at all of that monetary reward given to an industry that provides or produces nothing of value to the society. A country can't be built on what these people do, it only preys on the nation after it has been built on the toil of people who actually did something for a living that was respectable that contributed to the society. Really the same can be applied to the banking industry and the money loan itself.

[HoppinMad]

If you want to know why we are so far behind where we used to be as a nation there you go, look at all of that monetary reward given to an industry that provides or produces nothing of value to the society. A country can't be built on what these people do, it only preys on the nation after it has been built on the toil of people who actually did something for a living that was respectable that contributed to the society. Really the same can be applied to the banking industry and the money loan itself.

AMEN!! Better yet, read one that's a non OC/JDB like Microsoft, Pepsi, etc. They read like night and day. It's a real disgrace to the business industry as a whole and you can jest feel their indignation as you read it. I tool a class in college about business analysis and one tool used were these SEC reports. It tells a lot about a business and their business principles. Scumbags!