Hi T.J.

This is a discussion forum for people who like to talk about the financial industry in Canada.

Nobody's getting paid to post, but we do so because we like to talk about collection agencies, creditors etc.

Post a question and if we get a chance, we'll post a reply to hopefully get you started on your path.

I saw your question earlier on but I didn't answer it because no one can give you an definite amount on how much your account was sold off to a collection agency for. It depends on how old the accounts are and what kind of losers the company who buys the bad debt portfolio thinks the debtors are. Again, these things are bought up not individually but as part of a huge portfolio by scavanger companies like ARO, PMS and maybe Natale Law Offices who then work the numbers. Typically the going rate may range anywhere from 1 to 5 or 6 cents on the dollar.

Here's an excerpt from the collections industry trade website, collectionsworld.com. It describes how a 270 day old health care portfolio of face value 1 billion dollars, was written down by the original owners, Tenet Health Care to 1 million. It was then sold off as a portfolio to 2 scavenger collection companies with the euphemistic monikers, "West Asset" and "Medclr." The selling price in this case was 16 million dollars or 1.6 cents on the dollar.

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West Asset, NCO, CarVal Partner to Purchase Tenet Portfolio

Healthcare debt buyers West Asset and Medclr partnered with CarVal Investors to purchase a bad debt portfolio from Tenet Healthcare Corp. with a reported face value around $1 billion.

The debt sale, which CCRHealthLine reported Feb. 21, was the first for Tenet, one of the country?s largest for-profit hospital operators.

The portfolio is made up of written-off self-pay accounts older than 270 days from more than 50 facilities that Tenet had already sold, according to a release issued jointly by West Asset and MedClr. While neither Tenet nor the buyers would detail the face value of the portfolio, sources say it is approximately $1 billion.

Tenet had written the accounts down to $1 million, the company noted in a recent SEC filing.

The buyers paid Tenet $16 million for the portfolio, Tenet said in its filing.

The contract with West and Medclr stipulates that Tenet will get money back if the collectors are able to collect over a certain, unspecified amount, the filing shows.

The sale may be the largest yet in the nascent healthcare debt market.

Horsham, Penn.-based Medclr is part of NCO Financial Systems, Inc. Minneapolis-based CarVal Investors is part of food giant Cargill. And Atlanta-based West Asset is part of West Corp.

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Ray

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