We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Why are debts sold on?
moohound
Posts: 1,209 Forumite
Reading through posts here it seems like a lot of debts are sold on to collection agencies (who sound like lovey caring people by the way:mad:), for very small amounts like 1p in the £.
I don't see how this makes sense for the banks. My DMP starts at the end of July and is approx over 100 months so they are getting 1 percent a month.
Can anyone enlighten me?
I don't see how this makes sense for the banks. My DMP starts at the end of July and is approx over 100 months so they are getting 1 percent a month.
Can anyone enlighten me?
ISA £1675 
MiniMoohound savings £3685.86 :T Plus £3800 CTF 
'MrMoneyMuststache' my new hero, Martin Lewis my long time hero
Poacher turned Gamekeeper
Roadkill rebel No 52 Aug £1.34p Sept 24p Oct 5p Nov 5p Sealed pot Challenge No 403 £176.66(2014) :staradmin NOV NST No 20
MiniMoohound savings £3685.86 :T Plus £3800 CTF 'MrMoneyMuststache' my new hero, Martin Lewis my long time hero
Poacher turned Gamekeeper
Roadkill rebel No 52 Aug £1.34p Sept 24p Oct 5p Nov 5p Sealed pot Challenge No 403 £176.66(2014) :staradmin NOV NST No 20
0
Comments
-
tax relief and cost to serveDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
-
Not to mention off their books0
-
Chasing down debtors takes time and costs money, with no guarantee of success; as there will be a portion of those debtors who are completely unable, or unwilling, to pay. It is also a distraction from whatever the core business is.
It may therefore make more sense from a short term cashflow perspective to sell the debt, and recoup some money there and then, even if it's only a very small percentage; rather than (to coin a phrase) throwing good money after bad to chase it.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.1K Work, Benefits & Business
- 603.7K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards