Can anyone tell me if JP Morgan Chase sells credit card debt to debt buyers after they (Chase) write off a credit card debt?
Thank you.
2007-02-14 11:44:11 · 5 answers · asked by worried 2 in Business & Finance ➔ Credit
Yes they sell credit card debt. Debt buyers will buy a portfolio of debt and try to go after you for the full amount. But do keep in mind - alot of debt buyers will not honor the FDCPA - Fair Debt Collections Practices Act which is governed by the Federal Trade Commission. The FTC does not recognize a debt buyer as the original creditor. Some state laws also require an agency that purchases debt for profit retain a law firm or another collection agency to persue the debt.
2007-02-21 11:16:00 · answer #1 · answered by JD 2 · 0⤊ 0⤋
Yes they all do. This happened to a friend of mine. The good news is that debt buyers(unlike collectors bugging you for someone else) actually OWN the debt so they are usually more willing to work out monthly payment arrangments over a period of time, rather than rushing to sue if you can't make a large lump sum payment at once.
My friend called the debt buyer she's working with, and they agreed to stop all interest, knocked off a few thousand dollars, and she's currently paying $50 a month on the debt.
Ask for the easiest arrangements and see what they say. You have nothing to lose. On the otherhand, if it's past the statute of limitations for your state which is 3-5 years for most places, they can't legally force you to pay, or obtain a judgement in court to garnish your paychecks.
If you're still in SOL and don't make arrangements, it's highly likely they'll send it to one of their lawyers in your state to obtain a court judgement. However, you don't go to jail or anything.
2007-02-14 12:15:40 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Every creditor writes off the debt at 100% and sells it. When they sell the debt the average rate is ten cents on the dollar. So if you buy 100k worth of debt you pay 10% for it 10k.
If the buyer 1099s the creditor(chase) than the creditor will end up paying taxes on the 10% income they earned for selling the accounts.
Buyers normally dont 1099 creditors because they dont care.
2007-02-14 11:59:41 · answer #3 · answered by smile4cobra 3 · 0⤊ 0⤋
They all do. Yes, Chase does...I had a list of preferred agents but I left it at my office.....
2007-02-14 11:46:33 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Absolutely, they do.
2007-02-14 11:47:11 · answer #5 · answered by clawedlemew 3 · 0⤊ 0⤋