- Robert Weed
Debt Collector Midland buys debt for nickel on a dollar
Debt collector and debt buyer Midland Credit Management pays an average of less than five cents for each dollar of debt they buy.
That means if Midland is harassing you for a $7000 old account, they probably paid less than $350 for it.
That’s what I saw when Midland’s parent company, Encore, announced their first quarter results last Thursday. They paid $82 million to buy $2.1 billion worth of debt. Actually that’s more like four cents on the dollar.
Many of my bankruptcy clients are people who faced months of harassing calls or even garnishment on debt owned by Midland. Those people, when they first got into trouble, often asked the credit card companies or banks to work with them. And got little or no help.
Those same banks then turned around and sold the account for less than five cents on the dollar.
If the banks had been willing to settle for even 25 cents on the dollar, these folks would not be filing bankruptcy.