A debt buyer is any company, person or group that purchases performing or nonperforming loans or receivables (any form of money lent) with the purpose of collecting, over a period of time, an amount greater than the price purchased. Loans can be purchased from banks or small companies with outstanding receivables. The quality of loans can range from well-performing, large-balance, secured loans, such as mortgages, to charged-off, nonperforming, unsecured ones. While some debt buyers are licensed collection agency owners, debt buyers don’t normally collect on their own purchased accounts, instead outsourcing the risk to a licensed agency.
What IS a debt buyer?
