3 ms·
This is because debt collection is a terrible deal: debt like this sells for a very steep discount, because debt collectors generally have a low rate of success
by rcxdude 3y ago
This is because debt collection is a terrible deal: debt like this sells for a very steep discount, because debt collectors generally have a low rate of success of collecting. They essentially rely on apathy, ignorance, or compliance from the debtor, and if there's any resistance put up they essentially just write it off as it's no longer worth the effort (especially because debt collectors often don't have any actual evidence of a debt owed: they get a spreadsheet with names, addresses, and amount owed, and that's it. Something like that doesn't tend to stand up in court). So you probably gave them a better deal then the debt collectors.
- fullspectrumdev 3y agoYeah, I’ve had a few things go to collections agency in Europe, most of them small debts from FedEx paying customs charges for a package delivered to me and never telling me they did, sending it right to collections agency. I have a policy of simply ignoring these.
- mrguyorama 3y ago> if there's any resistance put up they essentially just write it off as it's no longer worth the effort That's rarely the case. Debt collection agencies will absolutely hound you and your relatives, damn the laws, to try and milk value from you, for quite some time. They will then go to conferences and brag about how they have tricked people into claiming debts, the ways they have harassed people, and other atrocious things.
- incahoots 3y agoFwiw, a friend works at a collection agency (that’s an entire different story), and it’s exactly as you say. Extremely rare that a company that sells their debt to the collection company will provide them any additional information regarding the debt. My friend has told me that on occasion the debt collection company will reach out to the original owners of the debt and request additional information, but seldom get a response. Anyone reading this, it is absolutely in your best interest to fight any debt, no matter if you believe you owe it or not. Nothing changes if you fight it and they have sufficient proof. Best case scenario is they wipe it from your credit report. If you’ve already began making payments then you’re SOL, as making payments is considered ownership of the debt in question.
- strix_varius 3y agoI would find it hard to be friends with someone who did this.