Does anyone know anything about buying junk debt portfolios? I was thinking of buying something for say $15K to $50K in face value at 7-10 cents on the dollar, and then sending it off to a collection agency, which works on a contingency-only basis.
Obviously the debt would be recent (so it adheres to statute of limitations and stuff) but I'm curious if anyone has ever done anything like this before. I understand the ethical implication to this and stuff but it is still very legal, so I'm wondering if anyone has messed around with this stuff before and what the risks are.
EDIT: Just to clarify, this would be things like Auto Debt, Credit Card Debt, Phone Bill Debt, Medical Debt etc.