Each day asset buyers receive numerous e-mails announcing the next great buying opportunity for portfolios. The referenced websites often look very professional and boast years of experience and many repeat customers. As in any other market, be wary of offers that are too good to be true. There have been instances of portfolios being sold multiple times, without a chain of title or with incomplete or inaccurate consumer information.
ACA’s Asset Buyers Division (ABD) Committee encourages buyers to know their counterparty well and to conduct their own due diligence prior to purchasing portfolios from unfamiliar sellers. Is the seller a member of ACA International or DBA International? Have you searched the party on the web to see what sort of reputation the seller has? Have you met someone who has dealt with the party before?
If buyers are uncertain about the legitimacy of potential sellers or portfolios, each of the ABD Committee members will be happy to accept your call and share thoughts on how you could conduct proper due diligence on the seller and the portfolio being offered. ACA’s Due Diligence Guidelines also details a suggested due diligence process when purchasing accounts receivable.