1264707--3/12/2010--ASSET_ACCEPTANCE_CAPITAL

related topics

{capital, credit, financial}

{tax, income, asset}

{personnel, key, retain}

{financial, litigation, operation}

{condition, economic, financial}

{product, market, service}

{regulation, change, law}

{investment, property, distribution}

{regulation, government, change}

{system, service, information}

{stock, price, share}

{provision, law, control}

{stock, price, operating}

{customer, product, revenue}

Instability in the financial markets and a prolonged economic recession may affect our access to capital and our ability to purchase and collect receivables. High unemployment rates may negatively affect our collections of charged-off consumer receivables. Our access to capital through our credit agreement is critical to our ability to continue to grow. If our available credit is materially reduced or the credit agreement is terminated and we are unable to replace it on favorable terms or at all, our ability to purchase charged-off receivables and our results of operations may be materially and adversely affected. Negative attention and news regarding the debt collection industry and individual debt collectors may have a negative impact on a debtor s willingness to pay the debt we acquire. Our ability to recover on our charged-off consumer receivables may be limited under federal, state and local laws. Failure to comply with government regulation could result in the suspension or termination of our ability to conduct business and the imposition of financial penalties. A significant portion of our collections relies upon our success in individual lawsuits brought against consumers and our ability to collect on judgments in our favor. We are subject to ongoing risks of litigation, including individual and class actions under consumer credit, collections, and other laws. Our operations could suffer from telecommunications or technology downtime or from not responding to changes in technology. We are converting our legacy debt collection platform to a different software system. A failure to convert our debt collection platform successfully could materially impair our ability to conduct our business. We are subject to examinations and challenges by tax authorities. We are dependent on our management team for the adoption and implementation of our strategies and the loss of their services could have a material adverse effect on our business. If we are not able to purchase charged-off consumer receivables at appropriate prices or in sufficient amounts, the resulting decrease in our inventory of purchased portfolios of receivables could adversely affect our ability to generate cash collections and income. We generally account for purchased receivable revenues using the interest method of accounting in accordance with generally accepted accounting principles, which requires making reasonable estimates of the timing and amount of future cash collections. If the timing is delayed or the actual amount recovered by us is materially different from our estimates, it could cause us to recognize impairments and negatively impact our earnings. We may not be able to collect sufficient amounts on our charged-off consumer receivables, which would adversely affect our results of operations, our ability to satisfy debt obligations, our purchase of new portfolios and our future growth. We are highly dependent on revenues generated from our purchased receivable collection activities. Entry into new markets or other attempts to diversify our business model may not be successful. We experience high turnover rates for our account representatives. We may not be able to hire and retain enough sufficiently trained account representatives to support our operations. Significant increases in interest rates could adversely impact our financial position, results of operations and cash flows. We face intense competition that could impair our ability achieve our goals. Our strategy includes acquiring charged-off receivable portfolios in industries in which we may have little or no experience. If we do not successfully acquire and collect on these portfolios, revenue may decline and our results of operations may be materially and adversely affected. Our operating results and cash collections may vary from quarter to quarter. Our collections may decrease if bankruptcy filings increase or if bankruptcy laws change. Our common stock trades at a relatively low average daily volume. Consequently, sales of our common stock by one or more of our larger shareholders could depress the price of our common stock. The recognition of impairment charges on goodwill or other intangible assets would adversely impact our financial position and results of operations. We have anti-takeover provisions, any of which may discourage takeover attempts and could reduce the market price of our common stock.

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1264707--3/12/2010--ASSET_ACCEPTANCE_CAPITAL_CORP