Payday loan debts are the outstanding amounts on payday loans that the payday loan companies have written off. Once payday loan debts are written off, they are put into a portfolio. If you have a collection account with a debt clearinghouse, you can see when payday loan debt portfolios are available for sale. By finding a payday loan portfolio that you are interested in, you can then bid to purchase the payday loan debts. If you have the capital for the purchase, it is fairly easy to do. Collecting the debts once you own them is the hard part.
Sign up for an account with a debt clearinghouse. These types of organisations serves as a middlemen between debt buyers and sellers. Debt Connection and CMAX are two major debt clearinghouses.
Log into your online account to view available debt portfolios. Debt Connection allows you to see portfolios for sale without having an account, but you cannot see all of the details. The type of debt will be listed, so just look for ones that say “Payday Loans.”
Pay attention to the bid due date and close date on any portfolios that you are interested in. Also look at the states in which the payday loan debts are for, to make sure you are licensed to collect in that state.
Submit a bid for a payday loan debt portfolio that you are interested in buying. You must be logged into your online account on the debt clearinghouse website to place a bid. Follow the procedures listed on the page of your debt clearinghouse website.
Send payment in full on the “close date” listed on the sales listing for the debt portfolio. Each seller may have a different accepted payment method, so ask any questions about this directly to them.
Things you need
- Debt clearinghouse account