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The Quiet Collapse Of The Debt-Collection Economy: How Fintech Bad Debt Moves Through The Secondary Market (And Why It Matters For Borrowers)

Debt collection agencies have lost billions because they cannot easily buy or sell debt. The recent sale of Fintech loans has exposed how this market works, where 60% of a $14,000 medical loan sells for less than $4,000 when it reaches the secondary market. That steep discount is what gives lenders an incentive to write off bad debt quickly.

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