anyone know about what percentage Sears would have sold a $2400 chargeoff to sherman aquisitions for? I'm not really sure if its been sold or assigned, but I'd really like to know this: If it was purchased by sherman, how much do you think they paid for it, and how much should I have offered? (I already told them I *may* be able to borrow up to 1,000 to pay them for deletion. I'm waiting for them to write me back.) I'm kicking myself for not offering less, because on the phone, the girl told me they wouldnt accept less than 50% of the original balance, which tells me they bought it for way less than that. anyone know about this stuff?
My understanding is that collection, chargeoff and judgements are often sold in bulk from the OC for pennies on the dollar. Often, CA's consider a 50% settlement on an account a success.
Depends on the age. A 2 y/o chargeoff from a prime creditor will change hands at 4 to 7 cents on the dollar depending on the state and what sort of supporting documentation comes with the package.
I just got off the phone with MBNA supervisor a few minutes ago. My account is days from getting charged off. She said they sell it to the collection agency for 40% as soon as it charges off. And, she made it clear that they sell it, not assign it for collection. Previously, I was told by a Merrick rep that they sell their charge offs to the CA for 40%. Having said that, I think that those that sell for pennies on the dollar are older and harder to collect. This whole game is played by what they think they can collect, and older accounts are harder to collect. Thats all I know - nothing else.
The first time a ca gets an account post chargeoff, it'll be assigned. Nobody will pay 40% for a fresh chargeoff. Think about it. The OC has already likely offered a 35 to 50% settlement prior to chargeoff and you didn't pay them. Why would a ca pay 40% and expect to get paid? The first year or so post chargeoff, the debt is very likely assigned. Then, it'll get sold for very few pennies on the dollar.
According to the trade web site, WWW.COLLECTIONINDUSTRY.COM Sherman and Arrow both buy accounts for between 3 and 5 cents on the dollar.
If they paid .05 cents. Offer them $240. They double their money. Make it a one time offer. Tell them you are going to file BK7 and then they will lose their $120. It's either +240 or -120 in the books. If this was my business decision to make, it would be simple.
Re: Re: wonder what % chargeoffs sell for now that just kills me because i offered Sears $1,000 before it was charged off. Why would they sell it for less than what they could have gotten out of me?
Re: Re: Re: wonder what % chargeoffs sell for Once the OC has been satisfied you should not have to pay anything! That is one reason why I said this above.
Re: Re: Re: Re: wonder what % chargeoffs sell for the OC has NOT been satisfied. You lost me. (which isnt really all that hard to do)
Re: Re: Re: Re: wonder what % chargeoffs sell for I have a chargedoff Providian account with a balance of $3,400. I called Providian to find out who had it, she told me that it was sold to Arrow, even told me that it sold for $82.00. Arrow has already contacted me on this, told them I would settle for $90 plus deletation, they said no.
Re: Re: Re: Re: wonder what % chargeoffs sell for It means that the original creditor Cross Country Bank has sold the account to the collection agency, therefore, the debt was transfered into a chargeoff account and written off of the profit statement and then sold to the collection agency for a loss. Your new creditor is the collection agency, unless for some unforseen reason, Cross Country Bank will buy the debt back from the CA. Not likley to happen.
Re: Re: Re: Re: Re: wonder what % chargeoffs sell for unbelieveable!! 82 bucks?!?! I'm going to call tomorrow and find out how much Sears sold mine for. If it was LESS than 1,000.00 (which is what I offered to pay prior to chargeoff) Allow me to ask you guys again: Why would Sears sell it for less than what they could have gotten out of me?
I would love to know how you guys get customer service reps to tell you this information. I've *never* had a customer service representative be so informative or helpful to my side of the equation. Do you have some special trick to get this information out of them? To you promise to send roses ;-)? Speaking of which, I have a colleague with a bad Amex debt from a company he owed that went out of business. I looked into it for him and it's been several years (at least 3, I believe), yet it appears it's still in assignment and hasn't been sold? Amex apparantly assigned to Nationwide, then to an attorney. What would cause them to take this course of action instead of selling the charge-off? Thank you!
Re: Re: Re: Re: Re: Re: wonder what % chargeoffs sell for Simple - they can't see the forest because all the trees are in the way. The people you spoke with didn't have the AUTHORITY to settle with you at all - they only had authority to demand full payment. Your account was one of thousands that were sold ina bulk sale to a junk debt buyer.
Interesting.. FlyingIFR -- Although your statement would appear to besimply an opion, you state it with authority. Have you worked for such an agency to know that the level 1 people don't have the authority in most collections companies? If you do have evidence to base your conclusion, can you then suggest the opposite side of the coin - how to most effectively get in touch with the person that *does* have the settlement authority?
Re: Re: wonder what % chargeoffs sell for To answer your question, Yes, I speak from experience. Geting to the person with nthe authority may be difficult, because they have a literal army of people whose job it is to make sure you DON'T get through to them. I am reminded of a time I was having a problem with my Macy's account (this was over 25 years ago) and no one in their credit department wanted to do anything about it. It was a case of me paying for merchandise that they subsequently sold to 2 people and the OTHER person got the merchandise. I wanted to speak with the Presidnet of Macy's (at the time a person named Finkelstein). Every person along the way tried so hard to deflect me away from him. "Maybe I can help.... just tell me the problem.... let me try...." I insisted that I be passed up the ladder and finally got to Finkelstein's secretary. She tried the same tactic, same questions. When she finally said "I can't put you through to Mr. Finkelstein unless I can tell him what the call is about" I replied "I want to find out if he's the guy who'se been sleeping with my wife". I got through REAL fast. I bring this story to let you know what you will face on your path to the person WITH the authority. You will have to have that person's name. The underlings will resist giving it to you. They will pass you off to a "supervisor" who probably is the nitwit at the next desk who has no more authority than the nitwit you are speaking to. To find out the name of the person in authority you will need to find out the identity of the Vice President of Finance (or some similar title, but don't deal with anyone lower than VP). Call Customer Service and ask his/her name and address and extension "so I can send him/her a letter". At this point DO NOT GIVE OUT YOUR ACCOUNT NUMBER - DENY HAVING AN ACCOUNT, since as soon as they see you have a delinquent account they will transfer you to Collections, NOT WHERE YOU WANT TO BE. And YES, I also have worked as a collector and as a Collection manager, so I know the game from that side also.
