debt recover amounts

dave030445

Hi hope this is in the right place. When you default on a credit card or loan and they sell the debt to a collection company what sort of price do the collection company pay.

Tixy

Hi

It can vary a lot - depending on how 'good' a debt it is perceived to be - if its a recent default and they had all the correct paperwork in place then it will be sold for a much higher percentage than if its a debt thats about to become statute barred and has an unenforceable credit agreement.

But could be anything from a few pence in the pound up to maybe 25p in the pound. To complicate it further they tend to sell debts in blocks rather than individual debts and it may be that no set price was ever allocated to each individual debt.

dave030445

Tixy wrote: »

Hi

It can vary a lot - depending on how 'good' a debt it is perceived to be - if its a recent default and they had all the correct paperwork in place then it will be sold for a much higher percentage than if its a debt thats about to become statute barred and has an unenforceable credit agreement.

But could be anything from a few pence in the pound up to maybe 25p in the pound. To complicate it further they tend to sell debts in blocks rather than individual debts and it may be that no set price was ever allocated to each individual debt.

What will the lowest amount be that they will except to clear the debt.

camuk81

Dave it's a bit like predicting the lottery numbers. There isn't one set price. Can you tell us a bit more about the situation.

Tixy

We can't tell as it varies so much with so many different things, however if the debt has been sold on (not just a debt collector collecting on behalf of the creditor) I would never start by offering more than 15% of the debt. You might not get it settled at that rate but that would be my starting point.

(Unless it was unenforceable or about to become statute barred and then if I was making an offer it would probably be only 10%).

It really does depend on so many things - not least daft things when in the month or quarter you make the offer (they have targets to meet), and what sort of day the chap who opens your letter is having.

dave030445

Tixy wrote: »

We can't tell as it varies so much with so many different things, however if the debt has been sold on (not just a debt collector collecting on behalf of the creditor) I would never start by offering more than 15% of the debt. You might not get it settled at that rate but that would be my starting point.

(Unless it was unenforceable or about to become statute barred and then if I was making an offer it would probably be only 10%).

It really does depend on so many things - not least daft things when in the month or quarter you make the offer (they have targets to meet), and what sort of day the chap who opens your letter is having.

wow i thought there would be a fixed amount they would take.
what does statute barred mean.

dave030445

dave030445 wrote: »

wow i thought there would be a fixed amount they would take.
what does statute barred mean.

just done a google search on the debt collection company and found they are a in house debt company to the company we have the debt to does this change things.