I want this discussion to describe actions that you should take when buying portfolios of any kind. I had just got ripped off, and I have to pay the real owners back what I've collected, and lost the money I put out. So what are the steps that need to be taken?????????
So sorry to hear that happened to you. Did you get a chain of title?
Get as many references as you can on the party you are buying from...that, in my opinion, would be the first step, especially if you are buying from an individual and not a company. As an individual I sometimes sell portfolios and I always expect to provide references to the party I am selling to.
Knowing who you are dealing with is important. References are good but can be staged. I check the business address of the seller. If it is a UPS store or a PO Box I am wary. I research the company to see how long they have been around. I search for references to them on the web. I check the chain of title for the portfolio.
This is just a few of the things I have done in the past. Now, I only deal with folks I know. For our clients I try to keep track of everyone who is selling debt.
Who was the company you get rip off from?
I like to find out the other collection agencies before me that worked the accounts. So with the chain of title, I can go find out why the other company / s sold the debt. Maybe they were told the accounts were scrubbed through pacer and they got 10 old bks on the files within the first week. It's crazy!