The concept of buying and selling charge-off receivable’s dates back decades. Until recently, it has been in the shadows of the conventional contingency placement system, and seems to be virtually invisible. Suddenly, there is an open market for bad debt.  Complete with a variety of sellers, several tiers of buyers, and even a layer of brokers and middlemen.

The selling of debt is measured in paper with a face value of now Trillions of dollars, on a yearly basis. Most of it sells at a huge discount-typically pennies on the dollar. The number of Collection agencies  working on purchased debt has grown with experience. They have realized bottom profits have exceeded collection ratios.

The buyers of the charge-offs own their own debt portfolios.  Diversifying their operations by adding investors purchasing power to acquire a larger portfolio at a discounted price. Some are Collection agencies and/or Collection attorneys. These agencies and attorneys specialize in the due diligence in purchasing a profitable Debt portfolio.   

The field also attracts newcomers and many investors from outside the collections industry to experience a very profitable Industry. Over a quarter of the buyers are outside investors with little or no experience in collections. Most of the investors have Debtwebex and its Collection department along with our Attorney Network to negotiate collection accounts for the debt purchased.

This is by far one of the most profitable purchases for both parties, since the investor lacks experience in collections, while the agency possesses the resources needed to recover what was once deemed un-collectable.