Re: debt collectors

Posted by Info (68.106.16.82) on July 07, 2003 at 15:23:10:

In Reply to: debt collectors posted by help in oklahoma on July 07, 2003 at 10:09:26:

Some information on Direct Merchants Bank.

They currently don’t make any money, so they are in the practice of selling non performing accounts to scavengers prior to officially required charge off dates. They will sell a 120 day late account to scavengers and not report it as charged off. They already have an astronomical charge off rate of 18% or higher and try to cook their books any way possible to lower this reported rate by selling accounts prior to charge off. This is just an accounting charade to lower their official charge off rates.

As listed in a previous post, a 120 day late account is worth about 15 cents on the dollar.
If they sold it at only 60 days late, they may have received as much as 50 cents on the dollar for it.

http://www.nlex.com/html/mresults.html

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