Dealing with Debt Collection Agencies

S_Joynson

I have some outstanding debts that have now been passed to debt collection agencies, who tell me they are now 'the legal owner of the debt'.

Now, I have had dealings with such folk before - with not inconsiderable success.

The figure I am after (if anyone knows it) is what price do they pay for those debts?

In some cases, I have been offered a 75% discount on a debt (which I quickly took advantage of), so how come they made any money out of me?

I have heard tell that they pay around 5 Pence in the pound for a debt.

Is this so? It'll be worth knowing as it can be used as a tool for others dealing with these people. they can sometimes be rather daunting, but forewarned is forearmed.

Cheers

S_Joynson

Anyone able to help me with this enquiry?

mademistakes

Hi there, I'm not too sure of the amount to be honest, but think your right because I have had cases where debt has been dramatically reduced.
Bumping this back to the top for you, hopefully someone will have the exact amount.

fermi

Can be from a few pence in the pound up to a reasonable percentage of the original from what I can gather. Often they are sold off in "bulk" lots by the major creditors.

There are too many factors to be able to tell for certain.

If the debt is one that might be time barred or does not have the correct paperwork then I would expect the average percentage paid to be very low. For newly defaulted accounts that could well be collectable then it may be a reasonable percentage.

You really have to test the water on a case by case basis.

Cat100

Hi
These parasities pay 1p to 5p to the pound.
Always communicate via letter.
Send via recorded delivery ask for CCA, they have 12 days to reply.Most do not as they will not have the CCA, if they don't reply in 30 days they would struggel to enforce it by law. Do not sign letter, some firms have been known to scan your signature and put onto credit agreements.