Does bailout money pay credit cards for bad debts?
I heard if you don't pay your credit cards they sell them to collection and get $0.50 per dollar for bailout money. True or False
Best Answer
It is true that a creditor such as Citibank, will sell that debt to a creditor for less than the full amount. But it has nothing to do with bailout, and it doesn't get you off the hook for the full amount. If you owed Citibank $1000 and they sell it to ABC Collector for $500, you still owe $1000. Plus late penalties and fees and interest. Citibank sold it to get it off their books and to at least get $500 instead of nothing. ABC bought it because they believe they can get AT LEAST $700 from you and will make a profit.
