What a fascinating read about an industry with some astronimical profit margins - the numbers speak for themselves. From 2006 to 2009, the US's top nine debt buyers purchased almost 90 million consumer accounts with more than $140 billion in “face value.” They bought it at a steep discount. On average, they paid just 4.5 cents on the dollar!
Siegel quickly discovered that when he bought the right kind of paper, the profits were astronomical. He obtained one portfolio for $28,527, collected more than $90,000 on it in just six weeks and then sold the remaining uncollected accounts for $31,000. Siegel bought another portfolio of debt for $33,388, collected more than $147,000 on it in four months and sold the remaining accounts for $33,124. Even to a seasoned Wall Street man, the margins were jaw-dropping.