www.iva.co.uk

I have posted about this before but still cant get my head round it.

A number of my creditors have sold my debt onto Max Recovery. This selling on is administered by Eversheds. I am presuming therefore that Max Recovery pay Eversheds a fee.

If Max Recovery can make a profit (obviously they must do or they wouldnt do it!!!) even AFTER paying Eversheds their commission / fee why do the original creditors sell these debts on in the first place. Are they not just waving goodbye to money that will now go to a third party?

Why do the original creditors not hang onto the original accounts? There must be a reason but it is beyond my small brain. Obviuosly at the end of the day it makes no difference to the debtor - but I am just mystified.

Its' all to do with cashflow, if they sell the debt today they can raise cash on the amount owed with no further administration costs.

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Hi
I think that it may also have something to do with PR.I guess they don,t want debtors who they can no longer sell to using up their time
Regards

Andy Davie
IVA.co.uk Spokesperson

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Thanks for those replies.

I would love to know the actual percentage that companies like Max pay for the debt. I have read various guestimates but presumably the actual figure is a trade secret.