Hi everyone,I have just completed my fourth year of IVA and have been meaning to ask who actually gets my money.Every year i get statements from a company called Max Recovery saying how much has been paid off the debt so far.Have they bought the debt of my original creditors?They have statements for three loans and three credit cards.
Just curious really.
blods
Yep they have brought the debt, but tbh i can't figure what why? or how they make any money from buying the debt, surely the original creditor would make more money back by keeping hold of the debt.
They do make money as they have bought the debt for next to nothing.
The original creditor will have insurance in place to cover them for bad debts.
They won't lose out.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Right i see.Now dont get me wrong,im happy paying back what i can afford but that seems a bit wrong to me.
Im paying quite a large amount of money every month plus half of my overtime to a company who seem to be making a large profit.
I guess this is just how it works
blods
The other way to look at it, is how many of us get overtime, windfalls or who pay 100% of the debt back, companies like Max Recovery must make a profit on those, especially if the debt was brought for peanuts.
These companies will make a profit, there would be no point in them buying the debts otherwise.
Personally, I'm not bothered who gets my money as long as I fulfil my obligations to my IVA and I pay back as much as I can.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Yes your right,we do have an obligation to pay back as much as we can afford,it just seems strange that a third party receives more money than the companies i borrowed from in the first place.
I personally would feel better knowing that they received the money i owed them.
Regards blods
Debt purchase and sale is big business these days, and the purchasers are making handsome profits, not that this should affect any of you in IVAs as it does not matter who is ultimately repaid, simply that you meet your repayments and get the balance written off after a realistic period of time.
If these companies choose to sell on our debts, that's up to them and after the way they treat some of us, I'm quite happy for my money to be going elsewhere!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
