Friday, August 15, 2014

The crazy-ass world of bad debt

The notion that a portfolio of debt could be stolen may seem improbable, but plenty of debt brokers are all too willing to sell “bad paper.” Such brokers sometimes “double sell” or “triple sell” the same file to multiple unsuspecting buyers. Other times, a broker may sell paper that he does not own and obtained by nefarious means. I spoke at length with one debt broker from Buffalo, who told me that he had hired a hacker from China to break into a former client’s email account and obtain his password. Once he had the client’s password, the broker had access to his paper. He then simply took a portfolio and, subsequently, sold it to another buyer — who didn’t know and didn’t ask where it came from.

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