A report from the Consumer Financial Protection Bureau (CFPB) detailing how debt portfolios are traded on online marketplaces.
Profiting from buying debt—a process known as or distressed debt investing —involves purchasing delinquent or charged-off accounts from creditors at a steep discount, often for "pennies on the dollar". Several white papers and industry reports explain this practice in detail. Key Industry Reports and Papers
Published by Receivables Management Association International, this paper highlights the economic role of debt buyers in providing liquidity to banks and other lenders. How the Business Model Works
Debt buyers must adhere to strict federal laws like the Fair Debt Collection Practices Act (FDCPA) , which prohibits harassment and deceptive collection tactics.