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Stick it to the JDB and help the little guy

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I have so many times seen how people wished that the OC’s would have offered pennies on the dollar to them to settle the debt, but you also must understand that these debts are sold in huge portfolios. NOW wouldn’t it really stick in the JDB’s craw if a large group of consumers banded together and formed a non profit corporation who then went and bought up these portfolios and then offered to sell them to the original owners of the debt for the same price? Boy oh boy would they scream bloody murder…now I know that isn’t ever going to happen, but it is something amusing to imagine. :twisted:

Just thought I would share my ramble 8)




Oh whoa, now that's something to think about, I would LOVE to be a part of something like that!!! :lol:

Sub: #1 posted on Sun, 09/07/2008 - 18:12

Shazzers Shazzers
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Count me in on this one as well!

Sub: #2 posted on Sun, 09/07/2008 - 18:25

llw1995 llw1995

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oh, yeah. Do it!! How to start?

Sub: #3 posted on Sun, 09/07/2008 - 23:05

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Good idea in theory. But there are several ramifications.

1) OC's and JDB's sell off huge portfolios at a time, not just onsees and twosees. You might have to buy at least 1,000 accounts for $25K or more. Where does the initial capital come from to buy these portfolios?

2) Even if it is a non-profit, there are still expenses and overhead associated with administering the company. You'll need to send letters or make phone calls (ie contact the debtors), and staff to do that. If you're wanting to sell the debts back to the debtors at par, and it's only breaking even on the debts it buys and sells -- how will this company pay its own bills, stay out of the red, and have positive cash flow to buy new portfolios? (Not to mention there's still going to be a lot of people who don't care enough to pay for their debt even at 5% - what will the company do with these accounts?).

3) It may be the best deal in the world to the debtors, but nonetheless if you are contacting consumers about their bad debts, this non-profit company would still be considered a collection agency by definition. All that licensing and compliance creates even more overhead & expenses to add to the administration.

I just don't think it's practically feasible to run an operation like this.

Sub: #4 posted on Mon, 09/08/2008 - 06:29

DebtCruncher DebtCruncher
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Also, just because you want to buy a portfolio, the OC or the JDB - whomever the seller is - will decide to sell to you or not. If they know what you are up to, they would not sell to you. Most of them keep track of how the portfolio performs as that helps them set their cost the next time around. Most of the time, there is a bidding process that takes place over a few weeks. Highest bidder with cleanest practices wins.

Sub: #5 posted on Mon, 09/08/2008 - 06:59

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mentioning JDB and clean practices in any way is an oxymoron of the first magnitude.

Sub: #6 posted on Mon, 09/08/2008 - 07:04

paulmergel paulmergel
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OMG!! You are SO right Paul!!!

Sub: #7 posted on Mon, 09/08/2008 - 07:05

Shazzers Shazzers
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ROFLMAO!! YOU GO PAUL!! ;)

Sub: #8 posted on Mon, 09/08/2008 - 07:18

desperatelyseekingsanity desperatelyseekingsanity

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That is a great idea...........This would be a great business venture for Vikas.

Sub: #9 posted on Mon, 09/08/2008 - 10:39

wssu92 wssu92

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For something like this to work it would have to be completely non-profit and run by donations only. Basically the organization would have to buy up debt and then just never attempt collection. Maybe they could send a PIF letter to the last known address with a donation card of sorts but other than that it would be pointless to attempt contact. Personally I would rather see the money spent on lobbyist groups to push for better consumer laws. I think it would be really cool if it was illegal to sell a debt that has been charged off unless that debt was part of a large portfolio of loans both good and bad.

Sub: #10 posted on Mon, 09/08/2008 - 12:05

DOLLARSandSINCE DOLLARSandSINCE
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