Does anyone really know what % debts are sold on for ?

property.advert

As the thread title asks, does anyone have first hand knowledge of what debt is sold for on the secondary market ?

Say you owe Egg £10,000 and haven't paid anything for ages. What is that worth ?

What if there is already a CCJ but it is not being paid. What is that worth ?

I know it will be quite complex in certain cases but what are the ballpark figures ? 10%, 20% ???

fatbelly

You really need an 'insider' to respond to this question.

I did get DLC to reveal that they bought a Citicard debt for 34% (IIRC) during a court case. But that was a few years ago and I suspect the going rate is less now.

There was a TV documentary about DCAs earlier this year and I think they had someone on who said that DCAs were buying debts at between 6 and 16% of the balance figure.

property.advert

I was always amazed at the provisions for bad debts and thought about this long before I was in a position to have to consider it for myself.

The two counter arguments are the DCAs not paying much because they have their own costs and not all will be repaid and the counter argument that if the original lender knows the secondary market is only going to pay out 10%, then they would surely set up their own in house team to get more back.

However, my feelings are that the current trend is to deal with it swiftly and get it off the balance sheet.

It would be very useful for a disenchanted insider to reveal the truth.

timmmers

fatbelly wrote: »

You really need an 'insider' to respond to this question.

I did get DLC to reveal that they bought a Citicard debt for 34% (IIRC) during a court case. But that was a few years ago and I suspect the going rate is less now.

There was a TV documentary about DCAs earlier this year and I think they had someone on who said that DCAs were buying debts at between 6 and 16% of the balance figure.

Spot on :T

http://www.channel4.com/programmes/dispatches/video/series-33/episode-1/the-price-of-debt

..and assuming you saw that ..this will amuse you if not surprise.
http://www.debtmanagementtoday.co.uk/newsstory?id=441&type=newsfeature&title=debt_collection_agency_targeted_by_undercover_investigation

t

fatbelly

Thanks for those links, Timmers.

I'm surprised I remembered that clip so accurately. I didn't realise it was available on-line!

timmmers

Yeah, you were spot on ...I thought it was more. Remembered the show easily due to the idiots working for the company being so horrid. The full thing is all over the place for downloading via torrent so it must have struck a few chords.

t

hart_2

Debts are usually sold on for between 5-17% in the £ depending on their worth in terms of likely recoverability.

The Egg loan of 10k offer no more than 10% but not worth doing unless the CCJ is removed by Egg too and the default on your credit files. Otherwise if its not a bother to you, then don't borther about it. Also the original loan might be unenforceable so if that is proved then there is nothing to pay too.