Company: ATLCL
Filing Date: 2025-03-10
Form Type: CORRESP
Source: 0001437749-25-006744
Chunk: 10

Company: Atlanticus Holdings Corp
Filing Date: 2025-03-10
Form: CORRESP
Chunk 10
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 are charged to the customers’ account which appears to be when the credit card account is opened and potentially prior to any consumer purchases. We also note you charge monthly maintenance fees ranging from $0-$15 which are recognized as income when charged. Please address the following regarding your general purchase credit card receivables: |

| ● | Clarify for us whether the interest rates charged are market rates in all circumstances. In this regard, we note your disclosure that annual percentage rates range from 19.99% to 36%. |

| ● | Clarify how the annual fee and monthly maintenance fees impact the initial fair value measurement related to the purchase of a general purchase credit card receivable related to a consumer purchase and clarify if a negative fair value is initially recognized. |

| ● | Provide us an illustrative example, with supporting commentary, of the accounting entries related to the typical transactions related to a general purpose credit card account to allow us to better understand the fair value measurements, the items recognized on your balance sheet and the resulting impact on your income statement. Please include all typical transactions including the assessment of an annual fee, the purchase of a receivable from the bank partner related to a consumer purchase, the assessment of monthly maintenance fees, etc. |

Company Response:

For general purpose credit cards, our bank partners solicit consumers and provide them offers that are specifically priced to match their credit risk profile and provide adequate returns on any invested capital. As a result, a consumer with a higher risk profile (and presumably lower credit score) receives an offer with an APR and/or fee structure at the upper end of the disclosed range (a higher APR and/or fee structure), while a consumer with a lower risk profile (and presumably higher credit score) receives an offer at the lower end of the disclosed range (a lower APR and/or fee structure). As a result of this underwriting approach, credit products are closely matched to the underlying consumer’s risk profile and on the date of acquisition (customer acceptance of terms and first purchase or fee assessment) the accepted credit terms reflect market value.

For a new consumer, annual or monthly maintenance fees may be billed upon acceptance of the credit terms by the consumer. If a consumer does not transact (make a purchase or a payment) within a specified time period, the account would be closed with the fee reversed. If the consumer does transact, the fee remains and becomes part of the overall receivable balance owed by a consumer. Our fair value models include the historical performance data of consumers. These historical models include both of the