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It is possible that during your debt settlement and negotiation
program you will encounter a junk debt buyer. Junk debt buyers
purchase delinquent debts and then try to collect the outstanding
balance. The difference between what they buy the debt for and what
they are able to collect is their profit. The debts are purchased in
large portfolios with other delinquent debts, and the price of the
portfolio is based on how long the debts have been past due and how
many collection agencies have attempted to collect it. The longer
the debt has been past due, the less it is worth. The more agencies
that have attempted to collect on the debt, the less it is worth.
The vast majority of debt portfolios bought on the market consist of
credit card debt, followed by automobiles, telecommunications, and
retail debt.
How much do junk debt buyers buy portfolios for? ·
recently charged-off accounts directly from the original creditor:
11-16 cents on the dollar
·
accounts that have been pursued by 1-2 collection agencies: 6-7
cents on the dollar
·
debts that are past the statute of limitations: less than 1 cent on
the dollar
How will debt buyers affect my debt settlement program?
When your account is purchased by a debt buyer, we know that a
settlement offer of 40 percent of the outstanding balance will be
highly lucrative prospect to the collection agency.
Who are some common junk debt buyers?
Asset Acceptance (AAC)
Sherman Acquisitions/Sherman Financial Group/Alegis
NCO Group
Portfolio Recovery Association
Asta Funding
Encore Capital Group (parent of Midland Credit Mgmt)
Allied National/Interstate
Risk Management Alternatives (RMA)
JBC & Associates
Arrow Financial Services (subsidiary of Sallie Mae)
RJM Acquisitions
Capital Acquisitions & Mgmt Co (CAMCO)
Excalibur
Cavalry Portfolio Services
Unifund Group
Phoenix Asset Acceptance
First Select Corporation
Collins Financial Services
Oliphant Financial Corp.
OSI Portfolio Services
Want to learn more about debt settlement? Please feel free to
call (877) 274-1260 or
fill out a form
and we’ll contact you as soon as possible. |
