In a previous post I covered why Ropay Asset Investors focuses on “fresh” charged-off credit card debt. Another important aspect we consider is the quality of the debtors in the portfolios we are buying. By focusing on the highest quality debtors, we can further ensure our chances of success.
It is our policy to only purchase what we term “qualified receivables.” In order be considered a”qualified receivable,” purchased obligators must meet the following criteria:
- They mush not have filed for bankruptcy at or prior to our portfolio purchase date
- They were rated as “prime” when initially underwritten by their credit card bank (a credit ranking of A or B)
By following the above guidelines we will be acquiring receivables that are higher than average quality and as a result, this should yield higher than average collection amounts.