Charge Off Portfolio - Posted by JR

Posted by John on August 19, 2003 at 16:06:02:

Very simple to make money on these. Like Mr C said, buy low sell high, but the rate is usually buy at 18%-25% and try to collect by offering to settle with the debtor at 40%. Remember, that’s at least a 62% gross profit. You take the risk of not being able to collect on some, but you still make out in the long run. You just have to be a better (meaner?) collector than the original note owner. There are actually secondary and tertiary (buy at 10%, recover 20-25%) markets for these notes. It’s very common with unsecured debt (credit cards).

Charge Off Portfolio - Posted by JR

Posted by JR on August 18, 2003 at 16:39:51:

How do I find someone who buys portfolios of charged off credit accounts? Is there a market for this sort of thing? If so, where do I start looking for buyers? I’m involved in selling a very large charge off portfolio from a well-known company, but I’m not too sure where to go and how to start getting offers on it. They want an offer today, but I’m not sure how to make it happen. I’d appreciate any and all assistance.