SOURCE: CompuCredit

February 02, 2007 18:47 ET

CompuCredit Announces Automobile Financing Company and Auto Loan Portfolio Acquisitions

ATLANTA, GA -- (MARKET WIRE) -- February 2, 2007 -- CompuCredit Corporation (NASDAQ: CCRT) announced today that it has acquired the assets of San Diego-based ACC Consumer Finance, LLC ("ACC"). ACC was majority owned by Rocco Fabiano, formerly of Household International Inc., who will join CompuCredit in an advisory capacity.

ACC currently services approximately $275 million in auto finance receivables and operates in 12 states with collection centers in San Diego, CA and Denver, CO. The company has approximately 170 employees.

In conjunction with this purchase, CompuCredit also has acquired a $195 million auto loan portfolio from Patelco Credit Union. These assets were originated and are serviced by ACC on behalf of Patelco.

"Rocco Fabiano and the entire ACC team bring a track record of success in indirect auto lending," said David Hanna, Chairman and CEO of CompuCredit. "We are pleased to add their complementary business and product offerings to our expanding suite of financial products and services."

Rocco Fabiano, Chairman of ACC added, "We are extremely pleased to be joining the CompuCredit team. With CompuCredit's resources and consumer credit expertise, I believe we can redefine the auto finance industry and establish ourselves as the premier automobile lender to those consumers who are underserved by traditional auto lenders."

ACC is a focused consumer finance operation engaged in the purchase and servicing of auto retail installment contracts originated by automobile dealers. These installment contracts are acquired from manufacturer-franchised dealers in conjunction with their sale of used and new automobiles and light duty trucks to borrowers with limited credit histories or past credit problems.

CompuCredit Corporation is a specialty finance company and marketer of branded credit cards and related financial services. CompuCredit provides these services to consumers who are underserved by traditional financial institutions. Through corporate and affinity contributions focused on the underserved and un-banked communities, CompuCredit also uses its financial resources and volunteer efforts to address the numerous challenges affecting its customers. For more information about CompuCredit, visit http://www.CompuCredit.com.

Our expectations with respect to growing the ACC business are forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond CompuCredit's control. Actual results may differ materially from those suggested by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the factors set forth in "Item 1A. Risk Factors" of the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2006, changes in the general economy that might make the acquired receivables more difficult to collect (and future receivables less profitable), our ability to transfer the acquired receivables to our systems and effectively collect them, and our ability to successfully integrate and grow the acquired business. CompuCredit expressly disclaims any obligation to update any forward-looking statements except as may be required by law.

Contact Information

  • Contact Information:

    Media Relations Contact:
    Denise Harrod
    CompuCredit Corporation
    +1-678-259-8114

    Investor Relations Contact:
    Jay Putnam
    CompuCredit Corporation
    +1-770-206-6364