gwheelock915

MIDLAND IS BUYING ASSET ACCEPTANCE!?!?

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http://www.insidearm.com/daily/debt-buying-topics/debt-buying/debt-buyer-deal-encore-capital-to-buy-asset-acceptance-for-200-million/

 

 

My favorite quote from Midland Press Secretary gwheelock915,

 

"With Assets valuation at a paltry $200 million, Midland applied its usual sales techniques and purchased Asset for $6,000,000 or approximately 3% of the value of the company."

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For Q4 2012, Asset reported an 8.3 percent decline in revenues and a drop in net income to $200,000 from $4.2 million the year prior.

 

Maybe they have already got all the low hanging fruit and now it is getting more expensive to get those judgments rolling in.

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Hmmm...will Asset Acceptance still be known as Asset Acceptance?  I wonder how this will affect their current lawsuits and entries on credit reports.

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Hmmm...will Asset Acceptance still be known as Asset Acceptance?  I wonder how this will affect their current lawsuits and entries on credit reports.

 

My guess is probably.  Seems like it'd be a nightmare to delete/re-add a TL with merely a different name.  And if that didn't occur simultaneously, imagine millions of CRs that suddenly have a double entry from two different entities.

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A plus for us is that they will be using one form complaint for all their court actions, and given the new volume of cases (and the potential loss of law firms litigating) it should be easier to beat them in court.

 

How will they come into compliance? I don't know, and I'm certain that they don't know either. Given the Brent ruling in the 6th Circuit, and the State AG/CFPB investigation into banks and collection practices, this should get juicy.

 

Apparently some lawyers are not very happy about the terms of the transaction:

 

Law Office Of Brodsky & Smith, LLC Announces Investigation Of Asset Acceptance Capital Corporation http://www.thestreet.com/story/11864719/1/law-office-of-brodsky-amp-smith-llc-announces-investigation-of-asset-acceptance-capital-corporation.html

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My guess is probably.  Seems like it'd be a nightmare to delete/re-add a TL with merely a different name.  And if that didn't occur simultaneously, imagine millions of CRs that suddenly have a double entry from two different entities.

 

Per Encore's 8-K filing with the SEC, they will be merging a subsidiary, Pinnacle Sub, Inc. with Asset Acceptance. Pinnacle Sub Inc. will cease to exit and Asset becomes a wholly owned subsidiary of Encore.

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Yeah, it would be insane to reconcile all those old Asset TLs.  This begs the question:  Do you think Encore will be more litigation averse for suits brought against Asset during the merger?

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From reading about this merger and some others in the last week or so, there is a consolidation gong on in the industry. I think that even cited one reason for the Encore/Asset merger was that the amount of "inventory" that is available is down quite a bit. Another one is that the merger provides synergies, i.e., they can rid themselves of duplicate operations and personnel. The irony here is that some of the people that they let go might be on the receiving end of an AA or Midland phone call some day.  ::drowning::

 

I don't think they will be litigation adverse during the merger. I'm sure Asset is making certain representations and warranties about the operations, assets (no pun intended) and liabilities that Encore is acquiring. For anything major, I'm sure there is a purchase price adjustment formula in the agreement. they just consider litigation expenses to be just another cost of doing business.

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:ROFLMAO2: :ROFLMAO2: :ROFLMAO2:  :ROFLMAO2: :ROFLMAO2:

 

That article just made my day!!!

 

I certainly hope I had at least a small part in AA's demise. I feel so bad that their income went down so much last year - had I known, I might have withdrawn my lawsuit against them - NOT! Some of their 2012 income went to me!!!!

 

  :PartyTime:

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Somehow I overlooked this sweet quote. It appears we can shut down this website and we can all move on in our lives.

 

“This acquisition moves our industry into a new phase of maturity defined by more efficient companies that are committed to operating ethically and treating consumers with respect,” said Encore’s President and CEO Brandon Black.

 

Of course we don't know what that statement actually means. I would venture a guess and say that most, if not all of us posters have a significantly different definition of "respect" and "ethic."

 

I think I will have to write Mr. Black and get his take on that.

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I think that the debt collection bubble is gonna burst. You see no one has goten a new credit card in 4 years except the people who can really pay so the debt collection industry is imploding like the Death Star. Midland is beateable now and with aquisition of the asset acceptance will introduce another evidentiary hurdle for them. When will the state of california tax the crap out of them.

 

Maybe a whistleblower suit in the states where they have taken money you could notify the tax boards that they are taking billions of dollars out of state without taxes applied?

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http://www.insidearm.com/daily/debt-buying-topics/debt-buying/debt-buyer-deal-encore-capital-to-buy-asset-acceptance-for-200-million/

 

 

My favorite quote from Midland Press Secretary gwheelock915,

 

"With Assets valuation at a paltry $200 million, Midland applied its usual sales techniques and purchased Asset for $6,000,000 or approximately 3% of the value of the company."

 

JDB buying another JDB for a percentage that a JDB would normally pay for a junk debt account. There's brilliance in this somewhere.

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If Midland bought Asset Acceptance, I would like to know if I will have a way out of a "stipulation" entered with Asset accept in 2012; with the following scenario:

 

1.  No judgement at this point; only a lawsuit agst me with conditional settlement issued by the court (based on stipulation with Asset Accept thru old atty).

 

2.  substitution of atty recently filed by Asset Accept - May 2014? (cannot make out the name of the Asset Accept signatory).  New debt collector is MCM (Midland), with their billing statement showing "Asset Acceptance" but with MCM address in Warren, MI.

 

3.  Asset Accept Statements prior to entering Stipulation was a "composite" of statements from two creditor companies.

 

QUESTION - Was wondering if it is wise at this point to rescind the "stipulation" not filed with the Court?

Also, the May 2014 statement showing " Asset Acceptance" address but is in fact MCM - is that a misrepresentation of facts?  Also, validating the signatory on the "substitution of attorney".  If at this juncture (MAY 2014) Asset Acceptance is no longer "in existence", would that  be considered a "misrepresentation of facts" to have someone sign "on behalf of a non-existing company"?

 

Thank you much for your help!

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If Midland bought Asset Acceptance, I would like to know if I will have a way out of a "stipulation" entered with Asset accept in 2012; with the following scenario:

 

1.  No judgement at this point; only a lawsuit agst me with conditional settlement issued by the court (based on stipulation with Asset Accept thru old atty).

 

2.  substitution of atty recently filed by Asset Accept - May 2014? (cannot make out the name of the Asset Accept signatory).  New debt collector is MCM (Midland), with their billing statement showing "Asset Acceptance" but with MCM address in Warren, MI.

 

3.  Asset Accept Statements prior to entering Stipulation was a "composite" of statements from two creditor companies.

 

You already have a thread on this here:  http://www.creditinfocenter.com/community/topic/323689-new-debt-collector-uses-strawman-for-alleged-creditor-what-do-i-do/

 

You entered into a consent judgment.  It does not get filed with the court unless you default again.  If you try to back out now 2 years after the fact they will file it and garnish your wages and levy bank accounts.

 

2.  They are allowed to change attorneys at any time and it has ZERO affect on your situation.  WHO their attorney is does not matter to your situation and they only inform you as the court requires it.  As for the address:  it isn't a major issue except in your mind.  MCM is now the parent company of ASSET.  They can use either address and it is legal since MCM bought them out.  Not all companies are dissolved when bought out.  MCM may intend to keep Asset's business name as a subsidiary.  They can use both names as long as they pay the corporate fees for both.  

 

3.  So what?  They can create their own statements any way they want.

 

QUESTION - Was wondering if it is wise at this point to rescind the "stipulation" not filed with the Court?

Also, the May 2014 statement showing " Asset Acceptance" address but is in fact MCM - is that a misrepresentation of facts?  Also, validating the signatory on the "substitution of attorney".  If at this juncture (MAY 2014) Asset Acceptance is no longer "in existence", would that  be considered a "misrepresentation of facts" to have someone sign "on behalf of a non-existing company"?

 

Thank you much for your help!

 

The time frame to back out of the consent judgment was back in 2012.  You only have 30 days to rescind it.  That ship has sailed.

 

It is NOT a misrepresentation of facts you need to get over it.  A LOT of businesses get bought out and during the transition until the process is complete in the change over they keep the old business name on letterhead with the new parent company address.  Asset is still in existence.  Another business entity just owns them.  This is NO different than a large company like Procter and Gamble owning a brand name like Tide.  They can send you a letter on behalf of Tide using P&G address with Tide letterhead/images.  MCM now owns Asset and can send you statements saying Asset but with MCM address.

 

You are reaching at straws hoping you do not have to pay this off.  Unfortunately you agreed to a judgment which as I said before does not get filed unless you default again.  If you do stop paying I can guarantee you that Asset/Midland will file it with the court and start garnishment/levy procedures almost immediately.  They will not have to sue you again to do so either.  

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@homeschool mom

 

There's nothing deceptive taking place because Midland could easily prove that their parent company, Encore Capital, purchased Asset Acceptance.  Midland Credit Management is the servicer for accounts owned by Midland Funding.  Both of those companies are subsidiaries of Encore.   It's possible that MCM is now also the servicer for Asset's accounts.  As a result, it stands to reason that Asset's new address would also reflect MCM's address.

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