NCO Portfolio Management, the company that rose from the ashes of Creditrust Corp. had to write off nearly half a million dollars in projected revenue during the second quarter.
Baltimore-based NCO Portfolio Management buys delinquent credit card accounts that banks don’t want ? usually at just cents on the dollar ? and tries to collect a portion of the accounts. The company was created as part of the Creditrust bankruptcy reorganization last year.
While analysts who follow the company downplayed the significance of the write-down ? it accounts for only .3 percent of the company’s total collections portfolio ? the move underscores the substantial effect the poor economy has had on the highly fragmented debt collection market.
NCO Portfolio Management is also still dealing with the Creditrust bankruptcy and litigation that surrounded its failure. Its parent company, NCO Group Inc. of Fort Washington, Pa., recently announced it had to lay off workers and took a $12.5 million charge for corporate restructuring. The moves were blamed on “an environment of increasing delinquency” said Michael J. Barrist, who is chairman and chief executive officer of both companies.
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