All of the Company’s lines of business are principally conducted in the
United States, with some investments overseas.
Consumer receivables
Prior to purchasing a portfolio, we perform a qualitative and quantitative analysis
of the underlying receivables and calculate the purchase price which is intended
to offer us an adequate return on our investment after servicing expenses. After
purchasing a portfolio, we actively monitor performance and review and adjust
our collection and servicing strategies accordingly.
We purchase receivables from credit grantors and others through privately negotiated
direct sales, brokered transactions and auctions in which sellers of receivables
seek bids from several pre-qualified debt purchasers. We fund portfolios through
a combination of internally generated cash flow.
Our objective is to maximize our return on investment in acquired consumer receivable
portfolios. As a result, before acquiring a portfolio, we analyze the portfolio
to determine how to best maximize collections in a cost efficient manner and
decide whether to use our internal servicing and collection department, third-party
collection agencies, attorneys, or a combination of all three options.
When we outsource the servicing of receivables, our management typically determines
the appropriate third-party collection agencies and attorneys based on the type
of receivables purchased. Once a group of receivables is sent to third-party
collection agencies and attorneys, our management actively monitors and reviews
the third-party collection agencies’ and attorneys’ performance
on an ongoing basis. Based on portfolio performance considerations, our management
will either (i) move certain receivables from one third-party collection agency
or attorney to another, or (ii) sell portions of the portfolio accounts. Our
internal collection unit, which currently employs approximately five collection-related
staff, including senior management, assists us in benchmarking our third-party
collection agencies and attorneys, and provides us with greater flexibility
for servicing a percentage of our consumer receivable portfolios in-house.
We have increased our focus on purchasing consumer receivables internationally
from foreign banks via direct sales or auctions, similar to the domestic purchase
process. We have established relationships with agencies and attorneys in our
selected countries and we are committed to continue acquiring foreign consumer
receivables to maximize our return on investment.
Personal injury claims
Pegasus conducts its business solely in the United States. Pegasus obtains its
business from external brokers and internal sales professionals soliciting individuals
with personal injury claims. Business is also obtained from the Pegasus web
site and through attorneys.
Structured settlements
CBC purchases structured settlement and annuity policies through privately negotiated
direct consumer purchases and brokered transactions across the United States.
CBC funds the purchases primarily from cash, its line of credit and its securitized
debt, issued through its BBR subsidiaries. Blue Bell Receivables I, LLC (“BBR
I”), Blue Bells Receivables II, LLC (“BBR II”), Blue Bell
Receivables III, LLC (“BBR III”), Blue Bell Receivables IV, LLC
(“BBR IV”) and Blue Bell Receivables V, LLC (“BBR V”),
collectively the “Blue Bell Entities”, are variable interest entities
(“VIEs”). CBC is considered the primary beneficiary because it has
the power to direct the significant activities of the VIEs via its ownership
and service contract. It also has the rights to receive benefits from the collections
that exceed the payments to the note holders.
Social security benefit advocacy
GAR Disability Advocates provides its disability advocacy services throughout
the United States. It relies upon search engine optimization (“SEO”)
to bring awareness to its intended market.
