CAMCO $1.75 billion Consumer Portfolio to be Auctioned Off Next Week

A federal judge has ordered that the consumer loan portfolio of Capital Acquisitions and Management Corp. (CAMCO) be auctioned off to interested buyers. The public auction of $1.75 billion in consumer receivables accounts will take place next week.

In early December, the Federal Trade Commission asked a U.S. District court to halt the operations and seize the assets of CAMCO while investigating charges of illegal debt collection tactics including harassment, intimidation and deception. Le Petomane XII, Inc., not individually but solely as Federal Receiver, was appointed to oversee CAMCO?s corporate records and assets in anticipation of a trial. The judge assigned to the case, Robert W. Gettleman of the United States District Court, Northern District of Illinois, ruled late last month that the consumer debt portfolio of CAMCO was to be sold at a public auction. Most other assets of CAMCO, including the office building, telephone systems and computers, will be auctioned off to the public in a separate event on January 31st in Rockford, IL.