Interview: Bud Reitzel, Founder of Asset Acceptance
Bud Reitzel, former Chairman of the Board of Asset Acceptance Capital Corp. and a pioneer in debt purchasing, talks to insideARM.com about his career, his company's IPO and the debt purchasing industry as a whole.
A. The constant changes in laws create challenges for new businesses entering the industry, as well as for established companies. However, the biggest challenge for new companies is locating the capital to finance portfolio purchases. Today, capital is readily available in public markets for established companies, which makes it very difficult for start-ups to compete. At one time, everyone was on a level playing field, but now that is not the case. That's why there are only a handful of large companies that dominate the industry, even thought there are roughly 1,000 companies in the consumer charged-off collection industry today.
Q. Has Asset Acceptance's status as a public company changed your job?A. It hasn't changed my responsibilities much. I'm still very focused on debt portfolio purchasing and, of course, on the continued growth of the Company.
Q. How are investors reacting to your company and to the debt purchasing industry as a whole?A. We are pleased with the market's response to our initial public offering. On a whole, I believe the investment community has reacted very favorably toward the debt collection industry.
Q. What advice would you give someone who is considering this industry right now?A. You must have an absolute understanding of every state and federal law, and the constant change in those laws in regard to purchasing bad debt. Also, you must have a strong and steady source of capital to fund portfolio purchases.
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