Stick it to the JDB and help the little guy
Just thought I would share my ramble 8)
Oh whoa, now that's something to think about, I would LOVE to be
Oh whoa, now that's something to think about, I would LOVE to be a part of something like that!!! :lol:
Good idea in theory. But there are several ramifications. 1)
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.
Also, just because you want to buy a portfolio, the OC or the JD
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.
REPLY
mentioning JDB and clean practices in any way is an oxymoron of the first magnitude.
ROFLMAO!! YOU GO PAUL!! ;)
Submitted by desperatelyseekingsanity on Mon, 09/08/2008 - 07:18
That is a great idea...........This would be a great business ve
That is a great idea...........This would be a great business venture for Vikas.
For something like this to work it would have to be completely n
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.