Companies in this specialized industry, often referred to as debt buyers or distressed asset investors, purchase charged-off debt portfolios from original creditors (such as banks, credit card companies, and auto lenders) for a fraction of their face value. Their business model is to recover a portion of this debt, which is considered a high-risk, high-reward investment. The process is legally complex, requiring navigation of probate laws for deceased accounts and bankruptcy court regulations for bankrupt accounts. Their mission is to generate profit by managing and collecting on these difficult-to-recover assets.

Founded in

United States