Credit Store Purchases Credit Card Portfolio From FDIC.SIOUX FALLS Sioux Falls, city (1990 pop. 100,814), seat of Minnehaha co., SE S.Dak., on the Big Sioux River; settled 1856, inc. as a village 1877, as a city 1883. Settlers abandoned the site in 1862 because of Native American raids, but with the establishment (1865) of Fort , S.D.--(BUSINESS WIRE)--Aug. 2, 1999-- The Credit Store, Inc. (EBB: PLCR) said today that it has purchased a $10.4 million portfolio (principal amount) of performing credit card receivables from the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. (FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). ). The portfolio was purchased at a substantial discount to par through the FDIC's competitive bidding Competitive bidding A securities offering process in which securities firms submit competing bids to the issuer for the securities the issuer wishes to sell. competitive bidding 1. process, The Credit Store said. Martin Burke III, chairman and chief executive officer of The Credit Store, commented, "This purchase is an excellent way to increase The Credit Store's profitable base of performing credit card receivables. While The Credit Store generally does not purchase receivables that are already performing, we believe that we will add significant value over our purchase price in a short period of time." The Credit Store, Inc. is a nationwide financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company engaged in the acquisition and recovery of non-performing consumer receivables and the origination and servicing of credit cards. The Company acquires portfolios of non-performing consumer receivables and originates new credit cards to those consumers who agree to pay all or a portion of the outstanding amount due on their debt. The new card is issued with an initial balance and credit line equal to the agreed repayment amount. After appropriate seasoning, The Credit Store attempts to sell or securitize Securitize The practice of a company selling accounts receivables or other debts owed to it. The third party that buys the debt assumes ownership of it and the responsibility for collecting the debts, and keeps the repayments when made. the credit card receivables generated by its business strategy. This press release contains certain forward-looking statements that involve risk and uncertainties. Future trends, actions or results may differ materially from those discussed in this press release. |
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