At Ropay Asset Investors we are passive debt buyers. Specifically we buy fresh charged off credit card at steeply discounted prices and place the assets with very specific 3rd party agencies for collection. We focus on “FRESH” charged off credit card debt because this niche offers the best combination of risk and reward.
What exactly is charged off credit card debt anyway?
Let’s say you have a $2000 balance on your credit card. The bank has a limited amount of time to collect on that debt before they have to charge it off and record it on the books at zero. That amount of time is 180 days. On day 181 the bank is mandated to write that debt down to zero.
Since banks are not in the collection business, usually it is not profitable for them to go after charged-off accounts. Instead, they package them up into portfolios and auction them off on debt exchanges such as NLEX or sell them directly to individual debt buying firms. In some instances banks may assign the charged off debt directly to a collection agency but this will only happen if the charged off debt is manageable (unlikely in today’s market with charged off debt for 2010 ringing it at 117 billion).