win270 Posted January 22, 2008 Report Share Posted January 22, 2008 If the OC is willing to sell for pennies on the dollar how come they do not offer the consumer that deal? It doesn't seem right that they will settle for far less in the sell ,but never offer to accept the same amount from the consumer.Would not change how the TL is reported by them. Is it just a way to get revenge on the consumer? Link to comment Share on other sites More sharing options...
willingtocope Posted January 22, 2008 Report Share Posted January 22, 2008 Well, sorta...Its easy to take all this personally, but you've got to remember, its just business.When an OC sells debts to a JDB...they'll likely sell a couple thousand accounts....lets say 5000. They seel it all in one package, and they don't have to bother with it anymore.If the average balance on those accounts is $1000, and they sell them for 10 cents on the dollar...that's 5000 x 1000 x .1...which means the OC gets $500,000 for paper that they've decided is worthless. With a $4,500,000 tax write off for their "loss" to go along with it, that's a fair chunk of change to their bottom line.That's why some OC's are willing to "settle" for 30%...it does get them a little more money for one account, but, its also a little more hassle for them. Link to comment Share on other sites More sharing options...
win270 Posted January 22, 2008 Author Report Share Posted January 22, 2008 I see Thanks Willingtocope Good to know how this works.I have another question maybe you could answer for me.When the JDB buys the Debts How do they get the right to report to CRA's? Link to comment Share on other sites More sharing options...
willingtocope Posted January 22, 2008 Report Share Posted January 22, 2008 Depends on the type of debt. Most consumer contracts these days include words to the effect that all rights of the original creditor can be sold to another organization. There is post around here somewhere that indicates that there are some restrictions that apply to people that you never had an "actual" credit transaction with...not quite sure what that really means. Link to comment Share on other sites More sharing options...
win270 Posted January 22, 2008 Author Report Share Posted January 22, 2008 Depends on the type of debt. Most consumer contracts these days include words to the effect that all rights of the original creditor can be sold to another organization. There is post around here somewhere that indicates that there are some restrictions that apply to people that you never had an "actual" credit transaction with...not quite sure what that really means.Thanks again Willingtocope Will search for it. Link to comment Share on other sites More sharing options...
trueq Posted January 22, 2008 Report Share Posted January 22, 2008 OC has to provide notice to you. Or the transfer is invalid in many states.I've never had an OC do that. Link to comment Share on other sites More sharing options...
Krash Posted January 22, 2008 Report Share Posted January 22, 2008 i will say this is what happend to me, i got a judgement from the oc, i made payment to them for a short time, and bam they said we are going out of business and someone eles baught your account they will be contacting you, well no contact for a while and i pulled my credit, OMG 3 derogs 1 on all 3 reports, past due, all kinds of bad things, that was cavarly, now they are saying they are "collecting' for the OC, which is bs the oc said they baught it, rip offs! Link to comment Share on other sites More sharing options...
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