debt buyers

Debt buyers are companies or financial institutions that purchase unpaid debts—like credit card balances or loans—from original lenders at a discounted price. Instead of collecting the debts themselves, they attempt to recover the full amount owed through various means, such as contacting the debtor or legal action. By purchasing these debts, debt buyers assume the risk of not recovering everything but aim to profit from successfully collecting or settling the debts at a lower cost. This process helps original lenders recover funds more quickly, though it often leads to ongoing contact with the debtor by the debt buyer.