Process Terms

    Debt Buyer: Definition

    A company that purchases delinquent debts from original creditors.

    Definition

    A Debt Buyer is a company that purchases charged-off or delinquent debts from original creditors, usually at a significant discount. After purchase, the debt buyer becomes the owner of the debt and can collect or report it. Debt buyers must report original creditor information using the K1/K2 Segments.

    Usage Notes

    • Must report original creditor via K1 Segment
    • Purchases debt at discount from face value
    • Subject to same reporting requirements as original creditors

    Related Terms

    Original CreditorK1 SegmentK2 SegmentCollection Account

    More Process Terms

    Dispute
    A consumer's challenge to the accuracy of reported information.
    ACDV (Automated Consumer Dispute Verification)
    The system used by bureaus to process consumer disputes.
    e-OSCAR
    The industry system for processing credit disputes electronically.
    File Submission
    The process of sending Metro 2 data to credit bureaus.
    Credit Report
    A detailed report of a consumer's credit history.
    Credit Score
    A numerical representation of creditworthiness.
    Tradeline
    A record of a single credit account on a credit report.
    Soft Inquiry
    A credit check that doesn't affect credit scores.

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