Nov 4 (Reuters) - Asset Acceptance Capital Corp, which buys distressed consumer debt, swung to a third-quarter profit as impairments on charged-off debt fell 78 percent.
The company expects to benefit from additional supply in charged-off debt and better pricing in the next 12 to 18 months.
"The economy has continued to deteriorate and credit card charge-off and unemployment rates have increased... and economic conditions may very well get worse before they get better, Chief Operating Officer Rion Needs said in a statement.
Net impairment charges in the current quarter was $3.1 million compared with $13.8 million for the year-ago quarter.
Total expenses fell 4 percent while total cash collection was $90.8 million in the quarter.
For the third quarter, the company reported net profit of $3.0 million, compared with net loss of $1.7 million, or 5 cents a share, in the year ago period.
Analysts expected the company to earn 12 cents a share, excluding items, according to Reuters Estimates.
Total revenue was $58.4 million, which missed analysts view of $60.0 million.
Shares of the company closed at $8.06 on Nasdaq Monday.
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(Reporting by Sweta Singh in Bangalore, Editing by Dinesh Nair) Keywords: ASSETACCEPTANCE/ (sweta.singh@thomsonreuters.com ; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: sweta.singh.reuters.com@reuters.net)

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