Broken Credit Open Mike

I have experienced a company that sells bad debt or (old accounts to consumers) By buying this account and assuming the debt and paying a small amount to settle, this institution reports it clean of lates, you own the account and it’s 7 year history is reported onto your credit. Fast way to rebuild hitting the 35% of your FICO portion of your score.

Passed this through an attorney and he stated it was legal as collection companies buy and sell debt all the time.

I guess Collection companies are tired of chasing debtors and just sell the bad debt to people who need the history. ” Assumable Accounts” is what they are called. Of course removing the lates and reporting it clean is in the settlement contract.

What is your take on this concept? I have tested it and have seen it jump scores 40-75 points. By the way the company is a financial institution.

BAJ