Profit at PRA Group was up 70% in the third quarter, to $42.5 million, compared with $25 million during the same period a year ago, according to financial data released by the company last Thursday. Kevin Stephenson, the chief executive of PRA Group, also applauded the new debt collection rule from the Consumer Financial Protection Bureau during a call with analysts to discuss the company’s earnings, calling the rule “fair and balanced” and saying it will help “level the playing field” for companies in the accounts receivable management industry.
Stephenson cited some of the side effects from the COVID-19 pandemic — more individuals working from home, spending less money on travel and entertainment, and continued forbearance programs — as a driver for the increased amounts that the company is collecting. The company also noted a continued shift into receiving more payments into its contact centers than from having to deploy a legal strategy and file lawsuits to collect on unpaid debts.
“Our operational capacity in the U.S. is strong,” Stephenson said, according to a transcript of the call with analysts. “Because of our decision to maintain excess space in our call centers, we have plenty of room to maintain social distancing standards that are required to keep our offices open and productive. As a result, our U.S. business is operating at full capacity, and our call centers are open and generating productivity metrics that are record-setting.”
Cash collections in PRA Group’s American operations were $336 million during the third quarter, compared with $280 million during the same period a year ago.
Stephenson also said during the call with analysts that PRA Group “encourage”s the efforts from the CFPB with respect to its forthcoming rule on model validation notices and time-barred debt disclosures. “We all need to stay focused on leveling the playing field and bringing the entire industry uniformly in line with best practices,” Stephenson said.
