Author Topic: Account was sold to a third party debt buyer  (Read 1788 times)

hcharris

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Account was sold to a third party debt buyer
« on: May 01, 2017, 10:41:50 PM »
I have 5 notes that have been charged off. 3 of those have the message "Account was sold to a third party debt buyer" in the collection log. But I have never seen any funds credited my account for these sales. Should I expect any of these proceeds? How long does it take?

Lovinglifestyle

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Re: Account was sold to a third party debt buyer
« Reply #1 on: May 02, 2017, 02:05:00 PM »
I think you only get money for the sale of the debt if the borrower pays up, and a lot of fees will be deducted.

nonattender

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Re: Account was sold to a third party debt buyer
« Reply #2 on: May 02, 2017, 11:00:27 PM »
If an account belonging to you (or a payment-dependent-note derivative thereof) is sold to a debt buyer, you ought to receive proceeds - eventually - and not depending upon whether the buyer can collect.  Of course, LC may have made some weird contingency deal with the debt buyer, but I doubt it - that's not usually how that market works.  Prosper did debt sales with great frequency in the old days - some with varying structures ("here's the portfolio, bid on what you like" vs "best bid takes the entire package" vs "multiple grades of package" vs "homeowner / non-homeowner package", etc etc etc - but in every case - and this is when the debt market was dry as a bone, not as frothy as it is right now - the proceeds from the sale were credited to the owner of the note/loan, not the platform.  Thusly "sold to" and "buyer" --- not something like "contingently-assigned-to-debt-collector-and-maybe-you'll-see-an-ounce-if-they-squeeze-enough-stones".

There'll probably be a delay before you're credited, though - because there always is...  Is this new?  I haven't owned LC notes in years - surely someone here with a well-aged portfolio of thousands of notes can tell us how LC has handled this in recent practice or if it's new?

I really can't see them selling them out from under you and pocketing the proceeds, but maybe this is different for notes - I don't know.

But I'd be curious to know...
A little nonsense now and then is relished by the wisest men.

anabio

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Re: Account was sold to a third party debt buyer
« Reply #3 on: May 03, 2017, 07:37:35 AM »
Sometimes you get something back...sometimes you don't (sounds like a candy bar commercial...)

I checked one of my sold notes.

Loan ID: 31187272
sold 12/2/16
$13.20 due
1/30/17 recovery from charged off loan = $1.35
1/30/17 recovery fee = $0.24

So I got a small portion of what was owed. In this case the recovery happened about 2 months after the sale...your results may vary...
As Will Rogers stated: : I'm not as concerned about the return on my money as I am the return of my money