By Admin on Jan 7, 2008 in Credit
frank92612 asked:
What I’m trying to figure out is. If a collection agency is buying a $1,000 debt of mine from a credit card company how much do they actually pay for the debt?
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What I’m trying to figure out is. If a collection agency is buying a $1,000 debt of mine from a credit card company how much do they actually pay for the debt?
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That depends on how old the debt is. The older the debt, the less they pay for it.
yellow14228 | Jan 10, 2008 | Reply
I believe it is between .25 – .50 on the dollar.
bobbynhb | Jan 10, 2008 | Reply
Actually there are two types of Collection Agencies. One actually “buys” the debt from the original creditor. Your credit report will sometimes say “sold to xxx financial”. The “sale” or “discount” is determined by what the companies determine as risk and how much they think they can collect.
The other type is just hired as a service to collect. Service companies get between 5-50% depending on how old the debt how the creditors determine how or if it is collectable.
Good Luck
Credit Guru | Jan 11, 2008 | Reply
Credit collection agencies don’t buy your debt from the credit card company. Collections work with/for the credit card company. The amount collection agencies get paid depends on what they negotiated with each other.
mrs.izabel | Jan 11, 2008 | Reply