Debt Liquidation

CDM works with our clients to liquidate their debt portfolio in its entirety or to repackage the portfolios into smaller portions to better market them. Issuers often offer the sale of whole portfolios consisting of a static group of accounts. Debt issuers usually prefer to sell their entire portfolio to a single debt buyer because the issuer is responsible for supplying the debt buyers with the documentation needed to prove the account in a court of law. Due to the varying size of debt buying organizations, not all organizations have the capital required to purchase large portfolios directly from the debt issuer. Historically, smaller debt buying firms would have to wait and purchase their debt accounts from a larger buyer after that larger buyer had already collected on the account.

Debt Liquidation is a sensitive transaction in the realms of corporate image, customer loyalty and goodwill for any creditor grantor. Disposition of debt portfolios to any debt buyer may not be in line with the company's overall modus operandi as debt buyers does not have the same incentive to maintain the customer relationship with a debtor as the original creditor, and some debt buyers may be unconcerned about negative publicity and complaints. Thus, there are reports that some debt buyers engage in abusive debt collection practices, which are illegal under the Fair Debt Collection Practices.

Our primary focus is to get you the top dollars for your liquidation portfolios and also to make sure that the debt buyers are reasonable institutions that abide all collection regulations. These institutions are some times a company, sometimes a collection agency or a private debt collection law firm, that purchases delinquent or charged-off debts from a creditor for a fraction of the face value of the debt.

We set guidelines based on your requirements whether to sell the portfolio to an "Active Debt Buyer" or a "Passive Debt Buyer." The debt buyers can then collect on its own, utilize the services of another collection agency, repackage and resell portions of the purchased portfolio or any combination of these options. "Active"—those who attempt to collect on the accounts they purchase, or "Passive"—those who invest in the debt and then outsource the collection activities to a separate collection agency or collection law firm.