How much do debt buying companies actually pay for the debt. Many of my debts have been bought by Max Recovery and I am interested to know if any one on the forum knows how much p in the pound debt companies pay to the original creditor.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
It will be a long way shy of what we are paying...which is how max recovery et al make their profits. I think they sometimes pay as low as 5p in the pound. This irks me!
it makes me wonder why creditors do that once one of my creditors got wind of my iva they sold aprox 12000 debt onto max recovery like a shot,i must say though i had no problems with max recovery and they voted yes to my iva and yes to my f&f,and my case officer said they are a good company to deal with.
They're both good companies to deal with. Many creditors just want shot of your debt once they get wind of an IVA. Max Recovery and Eversheds purchase debts for a very small amount and make their money over the five year period to secure higher dividends. Makes good financial sense if they're prepared to wait!
I've had no problems with either and the only contact was a letter telling me they had bought the debt and I wouldn't be hearing from them again.
I'm really not bothered who I pay my money to as long as I am debt free at the end of it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
i think its disgusting that a company can buy a debt for as little as 5p in the pound and then demand 56p in the pound.As i have said earlier i would rather see my money go to the banks i borrowed from.
If they had listened to me rather than threatening me with court etc i would have offered them a damn sight more than 5p in the pound.Its no wonder they are in such a dire mess.
I too want to pay my debt off and am doing so,but it riles me that such companies make one hell of a profit from my debt.
This is of course just my opinion and thats something they cant buy.
blods
Thanks all, its interesting as Max have bought 7 accounts from my original Creditors. I have just proposed a FF which is relative to the modification made to my IVA and am being advised by my IP accordingally. Meeting now 7th Jan 2011. Hope it will be over soon!!! Cant wait to move on
Hi
I think the average purchase price is 10-12p.
I understand Blods thoughts but you need to remember that it is swings and roundabouts and on many debts the company will not collect at all
Regards
I also think that the original creditor does not have to sell the debt and they won't be losing out.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks Andy, I have had feedback from people who have said that many debts purchased are not chased at all. My dividend will be way less than the original proposal, but having comformed to the "overiding" modification, my IP has put forward this variation meeting to seek creditors approval. I am hoping it pays off.
MRBLUESKY wrote:
totally agree spike,but doesnt seem fair on the tax payers who bailed the banks out.
I hear what you're saying and totally agree, however Max and Eversheds are major players in the debt purchase industry and if it wasn't for the likes of them, many IVA's won't necessarily be approved.......
