What do collection agencies pay for the debt?

terriblesaver

Can someone clear this up for me?

Do collections companies really pay as little as 10p in the pound for debts?

Please can someone tell me the average paid and the best results in terms of percentage accepted for full and final settlements.

Thanks for your advice, experience and motivation

x

file_wizzard

Depends on the factors involved;

1. age of debt
2. amount of debt
3. original creditor
4. purchaser


If a debt is under 2 years old it is still classed as “prime” and may well fetch 35-50p or even as much as 70p in the pound.

If it is much older say 5 years then maybe 15p - 20p in the pound, really old stuff i.e post 6 years can be as little as 5- 10p in the pound.

The average purchase price in the U.K is around 30-35p, however this is not an exact science and can depend upon all of the above variables, + a few others !

terriblesaver

Thank you File_wizzard - this gives me a starting point.

Is it really offensive to start offering at 10% to these compaies? The more I think about the the more I think how offensive they have been when chasing payment.

Although they have all been in a DMP for 3.5 years, is it likely they will want to wait 16 years for the full amounts to be repaid???

file_wizzard

You can but try!

average F&F go's from 20% up to 70%, the only time I am aware of company’s having to take as little the 10p in the £ are IVA's / Bankruptcy’s

Dr.Shoe_2

It all depends whether you've already paid them more than they paid for the debts etc. Say they paid £1000 for a £3000 debt but you've already paid them £1200 say, then they are more likely to accept £300 or 10p in the pound.

terriblesaver

Thanks Dr Shoe - They have been getting their money for 3 and a half years - all be it small amounts but they know I have been willing!!! I will offer and if they refuse I will continue with the monthly payment.

x

james32_uk

According to the bloke I was chatting to who set up my IVA many creditors will have effectively written off your debt by the time you've stopped making repayments for a few months on the trot or told them you're going through Payplan/CCCS etc. Therefore they'll get what they can for them from DCAs. If the best offer they get is 10% then that's what they'll take.

Broken_hearted

Try not to think about it this way as it will drive you mad. As you have already spent the money any discount is a bonus and then you feel a lot better.

terriblesaver

I know it's all a bonus and every time i see a new wrinkle in the mirror i remember that i have spent it and then not slept because of it.

They have been getting their bit a month for 3.5 years now and the outstanding amounts stioll inclde all teh interest and late payment charges etc..... vicious circle