No. of Recommendations: 0
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?

Yes, they are legitimate. Anyone can buy old, "bad" debts from lenders and attempt to collect on them. However his rate of return is WAY off. Think about it - how many people do you think are going to pay on a debt that went bad five years previously. You might be able to devote time and effort to it and make some money but likely you'll find it more hassle than it's worth.

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