What is a debt buyer?
A debt buyer is a private debt collection law firm, a collection agency, a company or a private investor that buys charged off or overdue debts from a lender or creditor for a proportion of the debt, based on the possible potential of the accounts.
Where have you heard about debt buyers?
Debt buying began because of the US savings and loans crisis, when over a thousand savings and loan associations failed and hundreds of banks were forced to close. The Debt Buyers Association (DBA) was established in 1997 to ensure that a crisis of this kind never took place again.
What you need to know about debt buyers.
Due to the financial advantages of the debt buying industries it saw a large expansion from 2002-2005, with the doubling of debt acquisitions in those years. From 1999 to 2009 the growth of debt buying was considered to be the most symbolic change within the debt collecting business. According to the Nilson Report ten buyers alone were responsible for 81% of all of the credit card debt purchased in fiscal year of 2007.
Find out more about debt buyers.
If you are interested in debt buying, take a look at our page on charged off debts.