Debt collector profits soar with people flush and easy to find
Curious how much is attributed to the continued adoption of pay-for-delete (PFD) by these debt buyers&#x2F;factoring&#x2F;collection agencies.<p>I noticed the trend start in 2018. Midland was one of the first to adopt it, then PRA a few months later.<p>For those unaware, paying a collection account was of little to not benefit for improving your credit score. The negative tradeline(s) would still be present for the typically 7 years (less, depending on type of debt and state in some cases).<p>Put another way, once you were in debt, there was little to no incentive beyond traditional &quot;morals&quot; that these folks would play to for you to pay. That, and legal action, which is still a highly effective source of revenue for these outfits.<p>Most that are sued either ignore legal service, aren&#x27;t aware of service by publication in obscure notice ads, or don&#x27;t show up for the designated day in court, awarding a default judgment to the collector. From there, they can garnish, seize, and follow your ass for years, in most cases for a debt they paid pennies on the dollar for in an excel document auction of sorts.<p>In the last few years, most of the debt buyers and collection agencies will delete the negative tradeline when you settle for less or pay in full the amount owed. This was a previously a &quot;one in a hundred&quot; chance you&#x27;d see discussed ad nauseum on debtor boards; that is, including a pay-for-delete stipulation in settlement negotiations.<p>If you&#x27;re in debt, read up on your rights, and how to play the game with these folks. Whether you can pay it easily or not, knowledge in the processes is incredibly valuable.