How much did the DCA pay for my debt?

Hanky_Panky

Debt is sold depending on the likelyhood of payment from the original debtor so:
Tertiary debt (really, really poor performing) is often sold for as little as a fraction of 1% e.g. 0.25%. The likes of Mackenzie Hall buy this type of stuff, often statute barred and very little chance of recovering anything.
The flip side is say MBNA who sell their debt very early on and could be as much as 70% as there is a very high likelyhood that the dca will be able to recover the debt.

FredWhispers

then i want to know what that sum was, and why the same offer wasn't made to me. simple.

They dont need to tell you and are not obliged to tell you.

The same offer isn't made because the DCA would make a loss on the prtfolio if they did that.
Simple maths. 100 debts of £100 = £10,000 of debt. They paid 10p in £ means the £10k cost them £1k. Now if the 20 people they contact.offer to pay etc pay up at the purchase price the DCA will collect £200. So...they pay £1k to collect £200! If they offered all those 20 50% offers they would collect 20 x £50 = £1k. They only break even!

That is why they dont offer people like us very low settlements. As I said before, the people who are refusing to pay is the reason we cant get decent full and finals! They cost us money!!!!!

Fred

PS I hope that maths was right!

InDeepDebt

MBNA offered for me to settle mine at around 35% before they sold it on. I couldn't afford 35% of £9k though.

The company who has it now have offered me a few times a "you pay a lump sum and we'll match it" deal - basically saying that I could pay it off for 50%. Unfortunately I can't afford that but hope that in a year or so will be able to settle for about 40% or less - I'm assuming that they bought it at well under 35%.

Jim

thechippy

mr_spud wrote: »

They already do. I'm suggesting, tongue-in-cheek, that they continue, but without attempting to greedily rip people off, harassing them and treating them like !!!!!!. I would have thought though, when attempting to extract money from people with very little of the stuff, that a lower profit margin per debt would lessen their risk? Anyway...

There's a serious point here though, that if a DCA is able to buy a debt for 10%, why isn't the consumer?

It will never happen. If it were the case, whenever somebody's finances changed for the worst, they could default almost on purpose, knowing that they could clear the debt for a fraction of the face value. That's why the banks would never do it. They would have people defaulting all the time.