Well, let’s answer the first question, that is, why is a debt sold in the first place?
Debts are sold for a number of reasons. In fact, you may not be aware of this but debt purchasing is a big business. A 3rd party collection agency will usually purchase a debt (for cheap) that is deemed no longer viable by the 1st party agency (the original creditor). An account or debt that is considered to be no longer viable means…
· The account has charged off, exceeding the amount of days for non-payment
· The account is part of a debt sale and is being sold in bulk with other debts or accounts
· The collection efforts on the account have failed and is being sent to a 3rd party agency
· The account is being sent to a law firm where collection efforts will continue or legal action will be pursued in some way
So how does your debt being sold benefit you?
3rd party collection agencies have a higher success rate in collecting debt for a number of reasons (they’re more aggressive than the original creditor and use effective, somewhat questionable strategies to get results). Because there is a high expectation of success, 3rd party agencies may be willing to negotiate terms that are more financially in your favor than the original creditor.
Is there a down side to your account being sold to a 3rd party?
Yes, there is a risk to your account being sold to a 3rd party agency in the short-term because nonpayment will reflect poorly on your credit, however such negative reporting can be remove in the future once a settlement or agreement is reached with the 3rd party agency. There are also legal risks to consider along with the possibility of your debt being sold to a 3rd party agency that is extremely aggressive.
Where do you go from here?
Navigating the space of debt can be confusing and frustrating. However, Reliable Debt Consultants has created strong relationships with 3rd party agencies to negotiate terms that will ultimately benefit your financial situation.
Was your account sold and you’re not sure what to do next?
Call Reliable Debt Consultants at #754-229-0660 for a free consultation and we’ll help you navigate the confusing and frustrating space that is debt.