I wouldn’t expect it to. The debt is currently sold for e.g. 1% of face value because debt collectors can collect maybe 5% on it, which may translate to 2% of p

I wouldn’t expect it to. The debt is currently sold for e.g. 1% of face value because debt collectors can collect maybe 5% on it, which may translate to 2% of profit after costs. In this case, a charity buying lots of debt would never have to buy debt for much more than 3%, as no debtor could pay it without losing money. Conceptually you can think of the 2% average profit as a market rate - if it ever goes too low some debt collectors will go out of business (due to inherent risk of business), and too high more competitors will spring up. Indeed in an efficient market this % on average is constant across different types of businesses too. Here you can think of recoup % - profit % = price of the debt %, as an output of profitability rather than input into profitability. So if anything, more charity purchases would put debt collectors out of business as the profit equilibrium shrinks. but this may have the effect of debt collectors innovating / cutting costs which could be detrimental. Apologies for structure all done on mobile before bed