securefundsdept.com

You have decided to rebuild your credit, really take charge of your financial future, and now... now it is time to negotiate with the collection agencies. How will you do it? Can you afford to pay off your debts in full? For the average consumer, the answer to these questions is a resounding no.

When attempting to settle your debt with a collection agency, the first thing you should know is: Your debt was purchased for pennies on the dollar. But how can this be if you are being pressured with harassing phone calls to pay full price? For the purposes of understanding how this is possible, assume the following example:

You inadvertently bounce a check with your longtime bank and immediately clear up the discrepancy. You ask that fees be waived based on loyalty, but the bank refuses to grant your request. Dissatisfied, you decide to close your account and go elsewhere. With fees and interest, your outstanding debt is $100.

This scenario is common as banks typically have thousands in uncollected fees on their books. Several years later, your old bank now has $100,000 in uncollected fees, and the probability that disgruntled customers will repay the full value of this debt is unlikely. Armed with this knowledge, the bank sells $100,000 of outstanding collections to Buy-Your-Debt collection agency at a discount for $30,000. The collection agency now has the legal right to collect the full value of the bank's unpaid collections, which is $100,000.