California Debt Settlement System | Justice Foundation
The two largest publicly traded debt buyers — Encore Capital Group and Portfolio Recovery Associates — file detailed financial disclosures with the SEC. Those disclosures reveal exactly what they pay for portfolios like yours. This publicly available data anchors your settlement offer in documented financial reality rather than guesswork.
What the SEC Filings Show
Encore Capital’s 10-K and 10-Q filings disclose portfolio acquisition costs by asset class. Recent filings show credit card and consumer loan portfolios acquired at weighted average prices of 5-8 cents on the dollar for fresh charge-offs, and 2-4 cents for older accounts or previously collected paper. PRA shows similar economics. These are audited figures reviewed by the SEC — not estimates.
The Economics of Your Account
If a debt buyer paid 5 cents on a $10,000 balance, their cost basis is $500. A settlement of $1,500 — 15 cents — is a 200% return on their investment. At $2,000 — 20 cents — it’s 300%. Both are profitable for the buyer. You are not asking for charity. You are offering a profitable business resolution to a company that bought distressed assets at a steep discount and needs to generate returns for shareholders.
How to Use This Without Citing It
You don’t cite SEC filings in settlement letters — that’s adversarial and counterproductive. But the economics inform your internal anchoring. Knowing that 15-20 cents is profitable for most debt buyers tells you that opening at 10 cents and settling at 20 is realistic, not optimistic. It tells you when a stated “floor” is genuine versus a negotiating position. And it tells you when patience pays off — a buyer who paid 3 cents demanding 50 cents has enormous room to move downward. The Justice Foundation kit includes a debt buyer economics reference guide with current portfolio pricing data.
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