Fall Forum Asset Buyer Session Highlights

November 9, 2009

ACA International’s Fall Forum conference brings together asset buyers, sellers and other industry professionals for education and networking.

Highlights from the asset buyer sessions:

• Fall Forum started with a joint keynote address given by Steve Leckerman, executive vice president and chief operating officer of NCO Group. Leckerman's session, The State of Credit, Collection and Asset Buying Industry, compared the last 20 years of the industry to the current state of the credit, collection and asset buying industry, which has included reduced consumer spending, an increased savings rate, low consumer confidence, a challenging regulatory environment, reduced credit availability and a once-in-a-lifetime recession. Leckerman ended with an industry forecast for the future, which involved increased consumer complaints and greater technology restrictions, and gave some tips for agencies to maintain business.
• The ARM Company Valuation and Divestiture session featured panelists discussing how ARM firms are valued and sold in today's market. Robert Castle of Northland Securities Inc. and Brian Greenberg of Greenberg Advisors, LLC discussed what issues matter to buyers and investors when they evaluate a company, providing attendees with a better understanding of their own firm's potential valuation. Methods for divesting an ARM firm or for attracting outside investment were also discussed, along with many insightful statistics on recent M&A activity.
• The Licensing for Debt Purchasers session covered specific rules and regulations every debt purchaser needs to be aware of and how to avoid pitfalls that can prevent licensure. Valerie Hayes, corporate counsel and vice president of legal and government affairs for ACA International, reviewed the state issues for licensing, presented an overview of debt collection licensing laws and described specific inclusions and exemptions for debt purchasers.
• The licensing session was followed by Mitigate, Transfer, Avoidance—Loss Prevention Techniques for Debt Buyers, which was presented by Hayes and Janis St. Martin, administrative vice president of CIA, ACA International. Hayes and St. Martin presented clear steps to minimize your exposure as a passive debt buyer. They covered how to minimize your contractual liability, make certain you have transferred your outsourced exposures appropriately and the issues surrounding the availability of applicable insurance coverage in light of the ongoing debate: Are you or are you not collecting debt?
• The first day ended with the Data Security session, presented by Todd Langusch, chief security officer of Tech Lock Inc., and David Mertz, president and founder of Compliance Security Partners, LLC. Langusch and Mertz discussed standard requirements common to credit, collection and asset buying professionals today, as well as new requirements on the horizon. Attendees were given information to improve their security and compliance programs and prepare for upcoming requirements.
• The asset buyers track kicked off day two of Fall Forum with a Legislative & Regulatory Update session, presented by Rozanne Andersen, Esq., executive vice president and general counsel for ACA International, and Adam Peterman, director of federal government affairs for ACA International. Andersen and Peterman discussed the latest legislative happenings in the industry and the major issues in the 111th Congress—Fair Debt Collection Act reform, FTC Debt Collection workshop report, health care education effort, TCPA autodialer prohibition, student loans and the bankruptcy amendment. Peterman also touched on ACA's strategic plan for the 111th Congress and its presence on Capitol Hill.
• A panel discussed the account and tax issues in the debt buying industry in the Asset Buying Accounting Practices session. Craig Boyer, principal for Deloitte Tax LLP, Brian McCloskey, chief financial officer of Boulder Credit Services Inc., and David Shane, director of McGladrey & Pullen, LLP, discussed financial and tax considerations, investment in U.S. distressed debt and recent IRS financial instrument guidance.
• The ABD sessions wrapped up with the Trends in Pricing and Liquidation session, presented by Mark Russell, director of Kaulkin Ginsberg Company. Russell provided the audience with an update of pricing and liquidation rate changes for credit card portfolios through the third quarter of 2009. He also provided a general update on trends in the credit card sector.