Company: ATLCL
Filing Date: 2025-02-06
Form Type: CORRESP
Source: 0001437749-25-002991
Chunk: 6

Company: Atlanticus Holdings Corp
Filing Date: 2025-02-06
Form: CORRESP
Chunk 6
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 cardholder agreements) but could also impact our consumers’ ability to make payments due to increases in these fees and interest or due to other financial obligations they may have which have been affected by a change in market conditions.

For example, an increase in the risk-free rate could have the following impacts (all of which were experienced during the most recent cycle of federal fund rate increases):

| ● | Interest rates on consumer receivables in our portfolio that are tied to Federal Fund rates would increase; |

| ● | On accounts where interest rates on consumer receivables in our portfolio are not tied to Federal Fund rates, other fees would be increased to offset the impact of the increased cost of capital, such as annual or monthly maintenance fees; |

| ● | Payment rates would decrease as consumers adjust to increases in their cost of living due to the macro-economic effects of increases in the cost of capital; |

| ● | Consumer default rates increase as minimum payment requirements increase; |

| ● | Servicing costs for our assets would increase, both due to internal and external costs; |

| ● | The returns required by third party market participants would increase which in turn impacts the discount rate used in our models. |

As a result, there is not an effective or accurate way to isolate the impact of instrument-specific credit risk attributable to a single variable due to its impact on multiple co-dependent variables. Isolating impacts based on one model input without recognizing all the other potential impacts would produce an arbitrary and inaccurate reflection of the impact of this change and could be misleading to the reader.

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The Company appreciates the assistance the Staff has provided with its comments. If you have any questions, please do not hesitate to call me at (404) 885-3310.

| Sincerely,             |
| /s/ Paul Davis Fancher |
| Paul Davis Fancher     |

| cc: | William R. McCamey (Atlanticus Holdings Corporation)   
 Mitchell C. Saunders (Atlanticus Holdings Corporation) |