As per Yahoo Finance, the parent company of the defendant in my FDCPA, Outrage and Intrusion on Seclusion case has a net worth (assets minus liabilities) of $1,240,000,000. (That is $1.24 Billion.)

It takes money to make money, usually, so PRA Group, Inc. borrowed about $2.6 billion. That is more than double its net worth.

First, is that even legal? As an individual, I was investing in blue chip stocks, not schlock, and the maximum I could borrow, using the stocks as collateral, was less than the amount I had in stocks and did not take my other assets, like real estate, into consideration.

So, if I formed a corporation, a legal entity that can evaporate as easily as it is created, I would be able to borrow twice as much?

I am also curious how assets of a debt buyer are determined. Do they count the schmata loans they purchase at face value, even though they only pay pennies on the dollar? Or do they use the expected value?

These are important questions if you file a suit against Portfolio Recovery Associates for intentionally inflicting emotional distress on you or intruding on your seclusion. Net worth of the company is taken into consideration for determining punitive damages, in a fair and just world.

The same company that wants to cry poverty in court benefits in pushing up stock value by claiming to have sound finances to current and prospective shareholders.

I’m musing on PRA’s financial health as I prepare for appeal and hopefully trial, and watching as the price of PRAA stock tries to push down through the $17.74 ten-year floor.

[UPDATE 10/19/2023. While I was paying attention to my appeal this week, PRAA broke through the floor.]

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