2007-01-10 14:00:51 · 9 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
I think so. A mortgage is an example, you could change mortgage lender which is in effect is selling your debt to another lender.
2007-01-10 14:06:05 · answer #1 · answered by toietmoi 6 · 0⤊ 0⤋
If you are speaking of debt that is not paid and the original company that you were indebted to sold your debt to another company, then yes, this is done on a daily basis.
Companies purchase delinquent debt from companies all the time. Of course when they purchase this debt they purchase it at a discount so they can make money on the end in the event that they can collect.
Example: If you had a visa card and owed $500 on the card but had not paid on the debt or the visa had not been able to collect from you for over a year. This is now a bad debt on their ledger. Now they want to get this bad debt off their ledger so they sell it to Collection company Alpha. Collection company Alpha might have purchased that bad debt from Visa for $325 a $175 discount. Sometimes the discounts are deeper than that.
Collection Company Alpha then immediately send you a letter telling you that they are a collection agency collecting the debt you owed Visa. They might even offer you a discount for paying it off Say $75.00, so you pay them $425.00 for this delinquent debt that they paid $325.00 for.
Collection Company Alpha might even sell it to some one else if they fail to collect from you.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-01-10 22:16:57 · answer #2 · answered by Skip 6 · 0⤊ 0⤋
It is a normal practise in the UK and not only they sell the debts but the debt collection agencies in the UK will re-sell it again to ones who will use not very friendly approach to collect the money from the debtors and intimidate them by calling at their homes and use the methods which are not strictly legal. Therefore beware!
2007-01-11 02:45:39 · answer #3 · answered by Anonymous · 0⤊ 0⤋
In the UK, unfortunately it is.
Big companies operate this practice a lot. Rather than waste their own time and money chasing debts that would cost more to pursue than the debt is worth, they sell the debt to a private collection company at a loss, to secure monies. If the debt recovery company fail to recover the debt, it is quite often handed back to the original company, who then "write it off".
2007-01-10 22:08:19 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yes, very. That is what creditors do. For instance, if you don't make payments on your charge card and the credtor can't get you to pay the debt, they sell it to a collection agency for pennies on the dollar. A debt can be sold many times over.
2007-01-10 22:23:37 · answer #5 · answered by kelly h 3 · 0⤊ 0⤋
Sure. Debt to the issuer is an asset. Just like a book, a chair or a computer.
2007-01-10 22:04:43 · answer #6 · answered by Wayne Z 7 · 0⤊ 0⤋
In the UK yes it is - and it's usually done to get you into more debt under the auspices of paying all your debts off in one simple payment.
Such criminality is against the Bible, humanity and reason - yet awfully legal.
2007-01-10 22:05:58 · answer #7 · answered by ♥Robin♥ (Scot,UK) 4 · 0⤊ 2⤋
in America yes but you will get probably only .10 cents to the dollar.
2007-01-10 22:08:10 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Yes.
2007-01-11 00:44:49 · answer #9 · answered by Anonymous · 0⤊ 1⤋