How much are debts traded (sold on) for...?

Debt_Tired

We all know that debt is bought and sold from original creditor to debt collector, or even passed from debt collector to debt collector, but how much are debts sold for? And how are they sold (individually or in bundles)? I’ve heard that some debts are sold for pennies in the pound. I’ve also heard that banks and other financial institutions are protected (insured) from bad debt (this separate from the PPI you pay for), so that if someone does default then the original creditor isn’t always out of pocket.

I don’t have a problem paying off a debt, but what I cannot get my head round is the sickening notion that a debt can be sold to a debt collector for a fraction of its full value, while the balance is clawed back or written off by the original creditor, AND YET the debt collector still demands full payment from you or I. This is unethical to say the least. Now if the debt collector was working on commission or a fixed-fee then maybe that’s fine, but to profit out of someone’s misfortune is wrong, but what can you do?

I want to come back to this, but for now what are your views? What do you think needs to be done to make things easier for you and I?

Regards

Debt Tired

Numpty_Monkey

I don't think there is a real price list as such,
it makes offering F&F settlements a lot cheaper;)

sallyx

I know how you feel and I too am annoyed about it. I have paid a HSBC debt for the last 2 years on a DMP, they have continued to add interest in that time. I have offered them 50% of the debt as a F&F which they have refused and I expect that with the 50% + payments from the last 2 years I have cleared the debt but yet they are happy to loose this money and sell it on for pence in every pound. It really really gets my back up, whats the point? I offer 50% and they say no but will sell on for probably 10% - makes me mad mad mad

*gets down off soapbox now *