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Author: ishtarastarte Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 311074  
Subject: Re: Investment Opp -or- SCAM? Date: 8/12/2002 7:54 AM
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A friend in the banking industry recently told me about the availability to purchase consumer bankcard "bad" debt portfolios/accounts, as a private investment. He said that the ROI is unreal (as high as 75%-100%!) and that I should check into it ASAP.

Apparently, anyone has the ability (with the right connections) to buy these accounts for as little as ten cents on the dollar and attempt to collect and recover on their own, as they now officially own these accounts.

Has anyone heard of this type of investment? If so, are the returns really that high?

Hi there!

First, a Fool is not a fool! Fool with a capital "F" has a whole other meaning from fool with a lower case F, ok? *grin*

Anyway, I'd say it sounds . . . risky.


Well, the accounts you're buying, by the time it gets to 10 cents on the dollar, will have been delinquent for quite sometime, have already gone through internal collections dept, probably already been to more than one collection agency. And YOU are going to be the one to make the deadbeats pay? I don't believe it.

You're going to expend a LOT of energy and your own money to try to collect and MAY get 1 out of 10. You'll have to make phone calls, deal with abuse and people avoiding you, handle a ton of letters with no response.

Nope, doesn't sound good to me.

(former deadbeat)
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