In a 2009 study of the debt collection industry, the Commission concluded that the “most significant change in the debt collection business in recent years has been the advent and growth of debt buying.” “Debt buying” refers to the sale of debt by creditors or other debt owners to buyers that then attempt to collect the debt or sell it to other buyers. Debt buying can reduce the losses that creditors incur in providing credit, thereby allowing creditors to provide more credit at lower prices. Debt buying, however, also may raise significant consumer protection concerns.The FTC receives more consumer complaints about debt collectors, including debt buyers, than about any other single industry. Many of these complaints appear to have their origins in the quantity and quality of information that collectors have about debts. In its 2009 study, the Commission expressed concern that debt collectors, including debt buyers, may have insufficient or inaccurate information when they collect on debts, which may result in collectors seeking to recover from the wrong consumer or recover the wrong amount.The FTC initiated this debt buyer study in late 2009 for two main purposes. First, the FTC sought to obtain a better understanding of the debt buying market and the process of buying and selling debt. Second, the Commission wanted to explore the nature and extent of the relationship, if any, between the practice of debt buying and the types of information problems that the FTC has found can occur when debt collectors seek to recover and verify debts.Many stakeholders recognize the concerns that have been raised about debt buying, including consumer groups, members of Congress, federal and state regulatory and enforcement agencies, and the debt buyer industry itself. Indeed, the debt buyer industry has launched a self-regulatory effort to address some of these concerns, and the FTC is encouraged by that effort. This study of debt buyers is the first large-scale empirical assessment of the debt buying sector of the collection industry. The FTC hopes that its findings contribute to a greater understanding of debt buying, enhance ongoing reform efforts, and prompt further study of the industry. To conduct its study, the Commission obtained information about debts and debt buying practices from nine of the largest debt buyers that collectively bought 76.1% of the debt sold in 2008, with six of these debt buyers providing the information the Commission used in most of its analysis. The FTC also considered its prior enforcement and policy work related to debt collection, as well as available research concerning debt buying. The study focused on large debt buyers because they account for most of the debt purchased; it did not address the practices of smaller debt buyers that are a frequent source of consumer protection concerns, a limitation that must be considered in evaluating the study's findings. The Commission acquired and analyzed an unprecedented amount of data from the studied debt buyers, which submitted data on more than 5,000 portfolios, containing nearly 90 million consumer accounts, purchased during the three-year study period. These accounts had a face value of $143 billion, and the debt buyers spent nearly $6.5 billion to acquire them. Most portfolios for which debt buyers submitted data were credit card debt, with such debt accounting for 62% of all portfolios and 71% of the total amount that the buyers spent to acquire debts. In addition to these data, the debt buyers provided copies of many purchase and sale agreements between themselves and sellers of debts. The debt buyers also submitted narrative responses to questions concerning their companies and their practices, as well as the debt buying industry. The key findings of the study are as follows:

In a 2009 study of the debt collection industry, the Federal Trade Commission (FTC) concluded that the most significant change in the debt collection business in recent years has been the advent and growth of debt buying. Debt buying refers to the sale of debt by creditors or other debt owners to buyers that then attempt to collect the debt or sell it to other buyers. Debt buying can reduce the losses that creditors incur in providing credit, thereby allowing creditors to provide more credit at lower prices. Debt buying, however, also many raise significant consumer protection concerns. The FTC receives more consumer complaints about debt collectors, including debt buyers, than about any other single industry. Many of these complaints appear to have their origins in the quantity and quality of information that collectors have about debts. This book provides an overview of the debt buying market and the process of buying and selling debt; and the nature and extent of the relationship between the practice of debt buying and the types of information that the FTC has found can occur when debt collectors seek to recover and verify debts.

The Model Fair Debt Buying Practices Act would regulate the activities of a person or entity that has purchased charged-off debt. It would establish clear procedures, minimum documentation requirements, and affirmative obligations before a debt buyer can: (1) contact a debtor, (2) initiate a lawsuit, and (3) obtain and collect on a judgment. The Act will help to curb some of the worst abuses in the debt buying industry, ensure that consumers are not forced to pay debts they do not owe, and reduce frivolous lawsuits in state courts.

Creditors and collectors seek to recover consumer debts through the use of litigation and arbitration. But, neither litigation nor arbitration currently provides adequate protection for consumers. The system for resolving disputes about consumer debts is broken. To fix the system, federal and state governments, the debt collection industry, and other stakeholders should make a variety of significant reforms in litigation and arbitration so that the system is both efficient and fair. Contents of this report: Introduction; Litigation and Arbitration Proceedings; Conclusion. Appendices: Debt Collection Roundtable (DCR) Panelists; Contributors to DCR; Agendas for DCR; DCR Public Comments; Sample State Debt Collection Checklists. Illustrations.

Credit and debt appear to be natural, permanent facets of Americans' lives, but a debt-based economy and debt-financed lifestyles are actually recent inventions. In 1951 Diners Club issued a plastic card that enabled patrons to pay for their meals at select New York City restaurants at the end of each month. Soon other "charge cards" (as they were then known) offered the convenience for travelers throughout the United States to pay for hotels, food, and entertainment on credit. In the 1970s the advent of computers and the deregulation of banking created an explosion in credit card use—and consumer debt. With gigantic national banks and computer systems that allowed variable interest rates, consumer screening, mass mailings, and methods to discipline slow payers with penalties and fees, middle-class Americans experienced a sea change in their lives. Given the enormous profits from issuing credit, banks and chain stores used aggressive marketing to reach Americans experiencing such crises as divorce or unemployment, to help them make ends meet or to persuade them that they could live beyond their means. After banks exhausted the profits from this group of people, they moved into the market for college credit cards and student loans and then into predatory lending (through check-cashing stores and pawnshops) to the poor. In 2003, Americans owed nearly $8 trillion in consumer debt, amounting to 130 percent of their average disposable income. The role of credit and debt in people's lives is one of the most important social and economic issues of our age. Brett Williams provides a sobering and frank investigation of the credit industry and how it came to dominate the lives of most Americans by propelling the social changes that are enacted when an economy is based on debt. Williams argues that credit and debt act to obscure, reproduce, and exacerbate other inequalities. It is in the best interest of the banks, corporations, and their shareholders to keep consumer debt at high levels. By targeting low-income and young people who would not be eligible for credit in other businesses, these companies are able quickly to gain a stranglehold on the finances of millions. Throughout, Williams provides firsthand accounts of how Americans from all socioeconomic levels use credit. These vignettes complement the history and technical issues of the credit industry, including strategies people use to manage debt, how credit functions in their lives, how they understand their own indebtedness, and the sometimes tragic impact of massive debt on people's lives.

DEBT BUYING / SELLING provides the basis for understanding the consumer and commercial debt industry. This guidebook not only covers what you need to navigate this lucrative business but it also provides a WEBINAR that details HOW the industry operates and the best ways to enhance YOUR profitability! Many businesses and individuals are making lots of money in this industry. Millions of dollars of charged-off debt is sold every day by major financial institutions. Credit cards, Personal loans, Lines of credit, Vehicle loans, Medical debt, Leases, Overdraft accounts, Retail installment contracts, Judgments, Real estate liens, and more. Just think...YOU CAN DO THIS TOO! DEBT BUYING / SELLING is your gateway to this amazing Money-Making Debt Industry. Not only do you receive the book "Debt Buying / Selling", you also gain insight from the Webinar "Debt Buyer RoadMap". DEBT BUYER ROADMAP is THE WEBINAR to watch if you truly want a Real Business with Real Results that is recession proof. No gimmicks, no fairytales, no buying anything else. Real acquisition of debt accounts for pennies on the dollar. PLUS, you also receive a $3,000 Face Value Debt Portfolio of actual accounts that you OWN! A sale contract is provided for you to fill out and return at your convenience. At last, a REAL BUSINESS that anyone can launch (and see real results) without having any experience or tech skills...Guaranteed! Overview of Debt Buying and Selling How to buy debt for PENNIES on the dollar Understanding Debt Buying Why Companies Sell Debt Process of Selling Debt - And More! Additional Resources (See page 3 for instructions) Sample Contracts - FDCPA Guide Directory of Collection Agencies $3,000 Face Value Debt Portfolio Debt Buyer RoadMap is committed to helping you build a successful business, whether you're a complete beginner starting from scratch or an experienced business owner just looking for an additional revenue source. debtbuyerroadmap is here to help you with your success. This is a limited offer, so take advantage NOW!