How much do Credit Collection Agencies actually buy debts for?

Jill1666

I'm sure this question has been asked a lot but I'm new on the board and can't find any info on it.

Does anyone know what persentage of the original amount credit collection agencies usually pay when they buy your debt? I believe in the U.S. it's as little as between 1% and 5%.

This info would be really useful when considering what is feasable to offer in full and final settlement.

Thx

dollywops

You cannot assume that all debt collection agencies buy debts. Some do and some work on a commission basis.

mm2000

I'd be interested to know the answer to this too.
I have a debt of £1205, just been bought by Cabot. I'm wondering how much the minimum is that I could offer to settle the debt.

Burlesque_Babe

I would start with a 30% offer.

I had a £1200 debt with Citicards many, many years ago. It was sold on to 1sr Credit and I made a F+F settlement payment of around £400 (can't remember the exact amount) to the DCA.

anyway, roll on 3 years or so and I decided to claim back the charges. It was less than £200 all in but citicards are very dogged in this area and fight everyone individually - the only people who are it seems. Anyway, I had to go to court 3 times and on the second time it was revealed the DCA had paid £180 for the £1200 debt.

Of course, now I'd go down the CCA route, but it wasn't something I knew about back then.

And yes, I got the charges back - eventually - the judge got so !!!!ed off with them, he struck out their defence and made them pay the money into court. The court then passed it to me

Cleosmum

I have seen mentioned on another forum that its between 10 and 30%, depending on the age of the debt, amount, the risk and whether its statute barred. People like Lowells tend to buy statute barred quite cheaply from what I can gather. The above figure seems to come from people who say they are working within DCA industry. Not sure how reliable the info is, or if its any help!

stapeley

If they don,t have a CCA , DO NOT PAY ONE PENNY !