What is a Debt Buyer?
A debt buyer is different from a collection agency. Debt buyers purchase old debts from original creditors, like banks, credit card companies, and car loan lenders. Unlike a collection agency, which only tries to collect as a service to the creditor, the debt buyer actually owns the debt.
Normally, debt buyers purchase thousands of debts in bulk sales from original creditors. These purchases are usually at deeply discounted prices. The debt buyers make money by acquiring debts cheaply, and then try to collect from the debtors. Even if the debt buyer collects only a fraction of the amount owed on a debt it buys, it still makes a significant profit.
Consumers that receive phone calls or letters from a debt buyer have specific protections under the Fair Debt Collection Practices Act. Flitter Milz will be glad to review any contact that consumer receive from debt buyers and evaluate whether there has been a violation of the consumer laws. Contact us.