Debt types › Credit card & consumer charge-offs
Sell charged-off credit card and consumer debt
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Short answer: Banks, card issuers, retailers and installment lenders can sell charged-off consumer accounts to licensed debt buyers for a lump sum, usually a small fraction of face value. The FTC's 2013 study of the largest buyers found an average price of 4.0 cents per dollar, with debt under three years old averaging 7.9 cents (FTC).
What drives the price?
- Time since charge-off and last payment (the FTC found price falls sharply with age).
- Number of prior collection placements (fresh, primary, secondary, tertiary).
- Data and media quality: statements, contracts, chain of title.
- State mix and statute-of-limitations exposure.
What should you check before you sell?
National banks and federal thrifts should follow OCC Bulletin 2014-37: vet buyers, give accurate account data, and do not sell accounts in litigation, settled, deceased-debtor, SCRA-protected, or near the statute of limitations. Buyers that collect are subject to the FDCPA and CFPB Regulation F.
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What else do sellers ask?
Can charged-off debt be sold?
Yes. Creditors routinely sell charged-off accounts to debt buyers. Regulators expect sellers to vet buyers and give accurate data, and some states require debt buyers to be licensed.
How much do debt buyers pay for debt?
The most-cited public benchmark is the FTC's 2013 study: 4.0 cents per dollar on average, 7.9 cents for debt under three years old, 2.2 cents for 6–15 years, and close to zero beyond 15 years. Industry sources quote 7–15 cents for very fresh paper, but those figures are not independently verified.
Can I sell my debt to a collection agency?
You can sell to a debt buyer, and some collection agencies also buy accounts. Most agencies work on contingency instead: you keep ownership and they keep a share of what they recover. A sale gives cash now; placement may recover more over time.
What is the difference between fresh, primary, secondary and tertiary debt?
These terms describe how many collection agencies have already worked the accounts. Fresh debt has not been placed with an agency. Primary has had one placement, secondary two, and tertiary three or more. Each extra placement usually lowers the price.
Information only, not legal, tax or accounting advice. Price figures are third-party estimates, not offers. Last reviewed: October 2026.
Related guide: How much do debt buyers pay for debt? · All seller guides