Debt buyers are companies or individuals who purchase unpaid debts from creditors at a reduced price. They then attempt to collect the full amount from the debtors themselves. Full definition
Usually, these accounts are purchased by junk debt buyer for pennies on the dollar from the original lender who wrote off the debt as a loss and tax deduction. (doanlaw.com)
Once the original creditor's debt claim goes through an unsuccessful lawsuit, there is an increased chance it will be sold to a junk debt buyer for pennies on the dollar. (creditsabre.com)
Consumers frequently ignore debt buyer lawsuits for any number of reasons: they don't recognize the company, they think they paid it off, or they think the lawsuit is fake. (consumerlawyer.mn)