If you run a collection agency or just want to start a collection agency, you will need some debt to collect. There are debt sellers that offer portfolios of consumer debt that ranges from charged-off credit card debt to charged-off payday loans. According to Credit Info Center, these types of debt portfolios can be purchased for pennies on the dollar. Once you purchase some consumer debt portfolios, you can work on collecting the debt to make a profit.
Review the debt portfolio listings on the online debt marketplace websites. Global Acceptance Credit Company, InsideARM, WorldWide Debt Exchange and Debt Connection all have debt portfolios listed for sale on their websites (see Resources). The Debt Connection Website also features a directory of debt sellers that you can use to locate consumer debt to purchase. The portfolio listings typically give the amount of debt in the portfolio, the type of debt it is, the states it covers, the charge-off date, the average account size, and the number of accounts.
Check for a closing date or bid due date on any debt portfolios that you are interested in purchasing. This is the date by which you need to make an offer to purchase the debt portfolio.
Contact the debt seller using the method mentioned in the listing. Usually, either email or phone are the preferred contact methods. Make your offer for the debt and wait to see if it is accepted. If so, be prepared to pay for it immediately.
Jamie Lisse has been writing professionally since 1997. She has published works with a number of online and print publishers. Her areas of expertise include finance and accounting, travel, entertainment, digital media and technology. She holds a Bachelor of Arts in English.