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
cabot
john240870
Posts: 145 Forumite
Hi how much do these sort of debt companies (cabot) buy the debt for is there a % that they will pay.
0
Comments
-
It's a trade secret, but it'll be a small % of the debt.
Why? Because it's a risky bet, the debts haven't been paid, so the chances of recovering money is low.
It is a bit of a myth that because they buy these debts on the cheap that it somehow makes the debts invalid, or that you don't have to pay. Both are false, but it does increase the chances of a lower settlement than the original creditor would accept.
In debt and looking for help? Look here for the MSE Debt Help Guide.
Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.0 -
They buy portfolios of delinquent accounts in bulk, the price they pay is as stated above, a trade secret, but likely to be pennies in the pound.
The reason the banks sell cheap is because these accounts are bought without the buyer knowing a single thing about the accounts they are buying, everyone gets the same letter, we are now the new owner, pay us, type of thing, without knowing if the debt is enforceable or not.
It’s basically a gamble by the debt buyers, for every unenforceable account, 3 or 4 will be enforceable.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
What would be a unenforceable account i thought all accounts would be a enforceable account,0
-
john240870 wrote: »Hi how much do these sort of debt companies (cabot) buy the debt for is there a % that they will pay.
We believe it's between 6 and 16% of the balance figurejohn240870 wrote: »What would be a unenforceable account i thought all accounts would be a enforceable account,
An account can be unenforceable because it has been more than 6 years (5 in Scotland) since it was last acknowledged, or because there was never a valid consumer credit act agreement.0 -
WOW 6% its worth a gamble at that price.
what's the largest discount anybody has been offered I'll start new thread and see.0 -
I'm not sure what was the lowest - I've heard of 10% on mortgage shortfalls.
A poster called Whambam had a lot of success but his lowest was 20%
http://forums.moneysavingexpert.com/showpost.php?p=69978335&postcount=11790 -
I settled with Cabot for 50% F&F0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.1K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.1K Work, Benefits & Business
- 603.8K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards