Credit Card Debt Collection
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Credit Card Debt Collection
1–10 of 23 posts
Re: Credit Card Debt Collection
#2I wonder if a low quality debt collection system is a uniquely American phenomenon. In Canada I had never heard of this happening.
Re: Credit Card Debt Collection
#3I wonder if a low quality debt collection system is a uniquely American phenomenon. In Canada I had never heard of this happening.
I don't think it's that bad but I've seen it happen. A relative was contacted several times over weeks about debt that they never had taken; turns out the real debtor had a similar (but not identical) name and lived hundreds of km away.
Re: Credit Card Debt Collection
#4I am surprised that un-chased debt can be bought at 5 cents on the dollar, yet then turned into court default judgements and wage garnishments or liens worth 80 cents on the dollar.
The dollar amount of the debts increases too, since debt collection firms can attach their costs at highly inflated rates.
I would assume that ~75% of debtors will earn some on-the-books wages at some point in the future or own a house. Therefore, this stage of the process seems insanely profitable.
Re: Credit Card Debt Collection
#5I am surprised that un-chased debt can be bought at 5 cents on the dollar, yet then turned into court default judgements and wage garnishments or liens worth 80 cents on the dollar. The dollar amount of the debts increases too, since debt collection firms can attach their costs at highly inflated rates. I would assume that ~75% of debtors will earn some on-the-books wages at some point in the future or own a house. T…
Is the difference the legal cost?
Re: Credit Card Debt Collection
#6I am surprised that un-chased debt can be bought at 5 cents on the dollar, yet then turned into court default judgements and wage garnishments or liens worth 80 cents on the dollar. The dollar amount of the debts increases too, since debt collection firms can attach their costs at highly inflated rates. I would assume that ~75% of debtors will earn some on-the-books wages at some point in the future or own a house. T…
Is the difference the legal cost?
Presumably, yes.
But I'd guess the legal cost is pretty minimal when you can have 1 in house lawyer do 1000 identical cases a day standing in front of a judge. Very soon the judge is going to just say "send over your CSV file of all the cases with identical facts".
Re: Credit Card Debt Collection
#7I am surprised that un-chased debt can be bought at 5 cents on the dollar, yet then turned into court default judgements and wage garnishments or liens worth 80 cents on the dollar. The dollar amount of the debts increases too, since debt collection firms can attach their costs at highly inflated rates. I would assume that ~75% of debtors will earn some on-the-books wages at some point in the future or own a house. T…
Not really, because you're just looking at the upside without looking at the costs
>labor frequently costs more than than underlying debt does, even when one is paying four cents on the dollar and hiring collectors straight out of high school
Re: Credit Card Debt Collection
#8I wonder if a low quality debt collection system is a uniquely American phenomenon. In Canada I had never heard of this happening.
I don't think it's that bad but I've seen it happen. A relative was contacted several times over weeks about debt that they never had taken; turns out the real debtor had a similar (but not identical) name and lived hundreds of km away.
That is good to know. My only experience with this stuff was in university where someone defaulted on a credit card from a big five bank. They called them up and overall managed the process pretty well.
Re: Credit Card Debt Collection
#9I am surprised that un-chased debt can be bought at 5 cents on the dollar, yet then turned into court default judgements and wage garnishments or liens worth 80 cents on the dollar. The dollar amount of the debts increases too, since debt collection firms can attach their costs at highly inflated rates. I would assume that ~75% of debtors will earn some on-the-books wages at some point in the future or own a house. T…
Not really, because you're just looking at the upside without looking at the costs >labor frequently costs more than than underlying debt does, even when one is paying four cents on the dollar and hiring collectors straight out of high school
For phone calls and stuff, sure. But for identical court cases, the legal labour per-case is low. I would imagine the biggest costs are any fixed court costs like filing fees and perhaps costs of sending letters (a 60 cent stamp starts to look expensive when it's a $300 debt).
Re: Credit Card Debt Collection
#10[deleted]