CompuCredit’s new collection subsidiary is paying off, as the business produced nearly 18% of the issuer’s second quarter net income. Late last year, CompuCredit formed Jefferson Capital Systems to target the defaulted receivables recovery area. The issuer says it entered the business because it believes many charged off credit card receivables are undervalued and because of the firm’s excess servicing capacity resulting from the declines in managed receivables. Through Jefferson Capital, CompuCredit acquired defaulted accounts with an aggregate face value amount of approximately $302 million at a cost of $9.4 million during the second quarter, and these activities generated pre-tax net income of $5.8 million during this same period. For the first six months of this year, the firm acquired defaulted accounts with an aggregate face value amount of $1.8 billion at a cost of $24.3 million, and these activities generated pre-tax net income of $10.2 million during this same period. All but one of the Company’s acquisitions of previously charged off credit card receivables during the first two quarters of 2003 were from the securitization trusts underlying the Company’s retained interests investments ($23.9 million in purchase price). For complete details on CompuCredit’s 2Q/03 performance visit CardData ([www.carddata.com]).