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Originally Posted by Doctor Dre
Ok so the worse that can happen is the collection agency buying off your debt for a % ? Or they only pay you back uppon collection ?
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yeah, well actually the collection agency will try to collect for a period of time, i guess 3 - 6 months or something like that. If they collect they keep % of the money they collect. If they can't collect there is another company that buys default loans, so you will get something but i hear its not much, like 30 cents on the dollar.
They give you an experian historical default scale you can use as a guide based on the persons credit grade. AA,A,B pretty much only default like 1% of the time, C was like 3% and D %6, E was 10% and HR was like 16%. (trying to recall from memory so i might be a little off)
This concept is awesome, thats the only reason i put up with the BS so long waiting to get approved, i love the idea. THIS WILL BE the way of the future for lending and will eventually put a dent into the money that credit card companies make. If no site challenges them soon they will be on the level of paypal in a couples years.