Question

What does a collections agency do when a creditor sells a debt to them?

Answer 1

Sometimes collection agencies sell entire portfolios of debt accounts to each other. The reason for this is that the creditor might assume that you are never going to pay your debt; selling the debt to a debt collector or collections agency may help them recoup at least some of their money.

Answer 2

Answer:The debts will be sold at less than their face value, but the debt purchaser is entitled to collect the full balance. This is where their profit comes from.