Can You Sell Debt to a Collection Agency, and Should You?

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Can You Sell Debt to a Collection Agency, and Should You?

For the vast majority of people that are owed money, the only objective is to recover the full amount. However, in some cases, the original lender may be unable to make any attempt to recover the money. With this in mind, they may seek to pass the owed money onto a debt purchaser.

A debt purchaser is a specific type of debt collector that buys debt from other people or businesses. They will buy the debt at a very low cost, before going on to collect the full amount themselves.

It may seem very strange for anyone to sell a debt, however, in their eyes, it may not be an option to recover it. For example, they might have spent far too much time and money in an unsuccessful internal collection process. Or, they may have taken legal advice and reached a point in a court case where it is simply too expensive to continue.

Regardless of how desperate the case may be, it may not be too late to recover the full amount. Unfortunately, once a debt has been sold, the original creditor will not be able to recover all of the money they are owed. 

In this article, our debt collection experts outline the specifics of the services a debt buyer offers, as well as alternative recovery options that may be a better option.

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Selling a Debt Vs Debt Collection – Which Should I Choose?

If you are owed money by someone that has chosen to stop paying, then it is important to try to recover that amount as quickly as possible. When confronted with this prospect, both businesses and private individuals deal with it in the best way they see how.

In many cases, this involves chasing the debtor independently, however, over a very short period of time this can begin to cost a lot. Or, in other examples, the original creditor may simply not have the money to do this or hire a third party. Quite often, the cost of this third party might not be quite what is expected, but this fear can prevent people from reaching out entirely.

This is why people choose to sell their debts to a debt purchaser. Whilst this is a perfectly valid way of removing the debt from the equation entirely, it is only slightly better than writing it off entirely. 

No collection agency would ever willingly take on a debt that they know cannot be recovered. If one was eager to buy the debt, it would mean that there is a strong likelihood that recovery is indeed possible.

If this is the case, it may be a better option to speak with a professional debt collection agency about recovering the full amount.

Best4DebtCollection provides the UK’s leading debt collection comparison service. Our service is completely free and open to anyone. 

Our partners are all award-winning agencies, with one being the only debt collection agency in the UK that is regulated by the Financial Conduct Authority (FCA).

Complete our quick and easy web form today to compare debt collection agencies now.

Can I Use a Can You Sell Debt to a Collection Agency, and Should You?

Get the Best4 Debt Collection Quotes Now

The hassle-free way to compare debt collection quotes from the best agencies and collectors in the UK right away

Can You Sell Debt to a Collection Agency – Frequently Asked Questions

Should I sell a debt to a collection agency?

Depending on the exact circumstances surrounding your debt, you may not need to write it off by selling it. Despite any perceptions, an expert debt collector may be able to help. For more information, use our free web form to contact a debt recovery agency. They will provide a complimentary pre-action assessment.

How long can I recover a debt?

In the UK, there is a time-lock limit on the enforcement of debt. This is known as “statute-barred”, and the limitation period is 6 years. However, if communication is made with the debtor within this time frame and they have acknowledged the debt, the time limit resets to that date. For more information, contact one of our award-winning partners now.

How much will it cost to recover a debt using a collection agency?

Every case is unique and must be priced according to its own circumstances and merits. Most reputable debt collection agencies operate on a commission-based pricing structure. For more information, you can complete our quick, free, and easy to use web form now.

How long does it take to recover a debt?

Again, this depends on the circumstances of the individual case. For example, some cases are more complex and require more time to research and collect. Others may be simple, but the debtor may be based in another time zone. For the best estimates, contact one of our partners today.

Who can use a debt collection agency?

Regardless of whether you are a business or a private individual, there will be a debt recovery solution for you. Specialist agencies exist that businesses and private individuals. For more information, complete our free web form today.

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