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Dealing with Debt Collectors quickly is essential to avoid penalty charges. In this article we provide some tips on the best ways to deal with Debt Collection Agencies.
When a company sells on your debt to debt collectors it is usually because the company has decided it is not cost-effective for them to pursue your debt. Debt collection agencies often buy debt very cheaply from lenders. For example, a debt collector may pay 5-10% of the value of the debt to the lender. It will then take on the responsibility for collecting the debt, if the agency gets an average of 15-20% of the debt owed back from you; it has double its money.
This means that a debt collector is likely to accept less payment than the original lender, which may have rejected offers below 50% of the debt.
