Re: First Time Experience With CA (original post 7/26 13:47:22)

Posted by Paul (216.127.68.137) on July 29, 2004 at 00:00:05:

In Reply to: First Time Experience With CA (original post 7/26 13:47:22) posted by HopefullyWiserDefinitelyOlder on July 28, 2004 at 22:18:49:

I just re-read your original post and you stated-

“I was told they bought my MBNA debt, and they paid 80% of it.
And, if I declared bankruptcy, they would still get their money back from MBNA.”

If your account charged off and was immediately sold to a CA, it goes for close to 10 cents
on the dollar. That figure rapidly dwindles to 2-3 cents on the dollar when sold 2 or more years
after charge off.

Yes, in fact they may have a recourse arrangement with the Original Creditor to get back
their money if you declare BK. However, I assure you it is not 80% as they lied, but
less than 10% if this was a very, very recent charge off.

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

If you want a full understanding of the 2-3 cents on the dollar debt buying business, read the
financials from these three publically traded 2-3 cents on the dollar debt buyers.

Midland Credit Management
http://sec.gov/Archives/edgar/data/1084961/000108496104000072/form10q_033104.htm

Portfolio Recovery Associates
http://sec.gov/Archives/edgar/data/1185348/000095013304001447/w96469e10vq.htm

Asset Acceptance
http://sec.gov/Archives/edgar/data/1264707/000095012404002135/k85237e10vq.htm

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