would this be a win.win.win.proposition....I buy debt from an OC for a big discount, I then offer to delete said debt from debters CR for say 60% of the total....the OCgets the write off plus some money. I get paid...and the debter gets a bad account deleted....just a thought
Hey JR, Where ya been? Your idea has been brought up before. With such an arrangement you'd be shut down fast. Afterall they must "maintain the integrity of the credit reporting system". Great idea tho,
Maybe an even bigger reason why it wouldn't work is because most people who default on loans/cards/etc. aren't like us. In other words, unlike us, they could care less about their credit reports. They could care less about their score. They don't know how many credit reporting agencies there are, nor do some of them even know what a CRA is, nor would it matter if they did. Most of us who are interested in "credit repair" give a damn. We REALIZE the mistakes we've made. We UNDERSTAND that it's a terrible struggle to undo the mess. Once we've undone it, we NEVER want to be late again. Speaking for myself as a former chronic slow payer, I'm probably one of the most obsessive-compulsive people I know when it comes to making payments on my credit cards. In fact, nowadays I sometimes end up paying by computer more than once per billing cycle. I think many people on this board are like that. On the other hand, the vast majority of Americans who let debts slip away are just happy to have gotten away with it. If you were to show up with their debt and offer them a "tradeline deletion" in exchange for paying 60%, they might say, "What? Who cares. Go away." You would almost need to specialize in buying the charged off debts of people who give a damn -- and how would you identify that minority? Doc
Well those are great points Doc, and I certainly see a bit of myself in you when you talk about the multiple online payments in one billing cycle lol. But I was thinking more along the lines of folks who needed these things deleted to get a mortgage, car loan, or some other type of BIG purchase. I understand the fact that alot of people are not interested in cleaning up their reports, but I also think that most people are basically honest and got into trouble financially due to some unforseen bad breaks and would really want to have an opportunity to clean their reports up. I'm not sure if I'm making any sense here but it seemed like a good idea. Thanks
Hey, I hope you don't get me wrong... I like your idea a lot... I just think it would be tough to separate care-nots from the cares at debt-buying time. On the other hand, maybe it could work this way... Someone who wants a mortgage but has a Providian charge-off would visit your site and ask you to intervene. You would then buy the debt from Providian at 30% and then turn around and resell it back to the consumer at 60%, netting a clean 100% profit. There are still a couple of problems, though: 1) If you were well-enough known for consumers to come to you, then you would also be well-enough known to the creditors. When Providian saw "SecondChanceDebt.com" knocking at their door, they would know that your customer is eager to settle and might immediately undercut you by making a direct offer to the consumer at 50% or 55% rather than selling it to you for 30%. 2) Becoming well-enough known to effect the economies of scale that would sustain a long-term business would require serious marketing and organizational capital. Unfortunately, venture capitalists were burned pretty badly over the past couple of years, and institutional investors are generally looking backward toward more traditional investments instead. I like the idea, regardless! Doc
The other problem is that creditors are not likely to just sell one acct at a time. They sell charge offs in bulk to the ca's. You may actually have better luck negotiating with ca's.
but I also think that most people are basically honest and got into trouble financially due to some unforseen bad breaks jrjr35 ========================= 70 % get into trouble due to no fault of their own!
