Re: CACV advice

Posted by Con America (64.235.243.92) on May 27, 2004 at 20:50:18:

In Reply to: CACV advice posted by Kay on May 27, 2004 at 13:52:22:

Charge offs sell for 7-10 cents on the dollar the day they charge off. So figure that is what CACV paid for it.

If you are wondering why your creditor sold your charge off for less than 10 cents on the dollar when you offered 25 cents on the dollar, it’s a long complicated equation involving tax deductions as well as diminishing the value of their current inventory of credit card receivables.

It’s the same reason a hotel will let a $400 room go empty for the night rather than take $100 for it. If word gets around that they are discounting rooms to only a hundred bucks, everyone is going to want the discount. So they give your account away to some company like Collect America that will make your life very miserable,, call it payback for trying to get out from the full amount.

Whatever Collect America paid (9 cents or so) has nothing to do with how much they are going to try to squeeze you for either. If they think they can get 100% from you with their terror tactics, they sure will try. These are rug merchants you’re dealing with here, it’s a whaddaya give, whaddaya take thing now. Most people give them nothing, so they have to take a sizeable percentage from anyone that does offer to pay.

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