Debt Buyers, sometimes referred to as "Junk Debt Buyers," are companies that buy up credit accounts, usually defaulted or hard-to-collect accounts, at significant discount over the face value of the account. Individual debt buyers usually go to significant lengths to keep what they actually paid for any given account a secret, but as the saying goes, it is usually "pennies on the dollar."
In many cases, an individual defaulted or hard-to-collect debt is sold by a national direct creditor to a national debt buyer at an initial discount rate. As noted above, this discount rate is a closely guarded secret, but from courtroom experience, street wisdom, and reverse-engineering, we at JMF estimate the average discount rate in these transactions to be approximately 5.43% of the face value of the debt.
This means that the debt buyer who is suing you for $10,000, probably paid under $600 for the right to do so.
Of course people are outraged by this, it is the unfortunate continuance of a practice developed by shady characters from crime novels buying up people's "markers."
The good news is that we at JMF are very good at defending these suits.
We have found over the years that these Debt Buyers are often poorly prepared for court, with little or no real "proof" of their right to sue, the amount due, etc.
In reality, it is not the Debt Buyer that is Junk, it is the debt. More often than not, the lawsuit is junk too. -JMF