All debt buyers are not the same
A debt buyer is a person or company that purchases debt from lenders for a fraction of the full-face value of those accounts. The value of a portfolio is evaluated based on several factors including the age of the debt, the volume of accounts, and the supporting data and media available. All debt buyers are not the same, though. Many also own their own debt collection agencies. Once a business sells its past-due accounts to a debt buyer, the debt buyer can:
- Sell the accounts to other debt buyers (resale)
- Send it to debt collection agencies (assignment)
- Collect on the accounts themselves (if they are a licensed debt collection agency)
EverChain's network of certified debt buyers and collection agencies pass the most rigorous certification standards in the industry. Our network consists of highly qualified organizations focused on the purchase, management, and recovery of defaulted consumer accounts. Certified buyers and vendors complete a detailed due diligence audit that's above the standards of the CFPB’s Larger Market Participation rule to validate their compliance with EverChain requirements. This includes annual license and certifications review, onsite audits, recording 100% of the calls made on accounts, and maintaining a record of all communications with the consumer should any post-sale complications arise. Potential members must be fully licensed and insured to be considered for initial entry to the robust certification process, and members must maintain standards as proven through audits to obtain recertification.
Read more on EverChain's blog: What's a Debt Buyer?