What I%26#039;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?
How much do collection agencies pay for debt?
Actually there are two types of Collection Agencies. One actually %26quot;buys%26quot; the debt from the original creditor. Your credit report will sometimes say %26quot;sold to xxx financial%26quot;. The %26quot;sale%26quot; or %26quot;discount%26quot; 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
Reply:Credit collection agencies don%26#039;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.
Reply:That depends on how old the debt is. The older the debt, the less they pay for it.
Reply:I believe it is between .25 - .50 on the dollar.
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