Debt types › Sell debt to a collection agency
Sell debt to a collection agency, or place it on contingency?
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Short answer: You can sell debt outright to a debt buyer (some agencies also buy), or place it with a collection agency on contingency. A sale pays you now and transfers ownership. Contingency keeps ownership with you and pays only from what is collected.
Should you sell outright or place accounts on contingency?
| Outright sale | Contingency placement | |
|---|---|---|
| Cash | Up front, fixed | Only when collected, minus fee |
| Ownership | Transfers to buyer | Stays with you |
| Upside | Given up | Kept, net of fee |
| Ongoing work | Minimal after closing | Reporting, disputes, oversight of the agency |
| Compliance exposure | Shifts largely to the buyer, but sale terms and data accuracy still matter | The agency acts for you, so you remain responsible for vendor oversight |
What are the pros and cons?
Sale: certain, fast cash and a cleaner exit, but the price is a fraction of face value. Contingency: potentially higher net recovery on collectable accounts, but uncertain and slow, and you keep the administrative burden.
What are the typical economics (cited)?
The FTC's 2013 study of the debt buying industry found buyers paid an average of 4.0 cents per dollar of face value, 7.9 cents for debt under 3 years old, and 2.2 cents for debt 6–15 years old (FTC, The Structure and Practices of the Debt Buying Industry). We have not found an authoritative public source for typical contingency fee rates, so we do not quote one. Ask every agency for its fee schedule in writing.
How do you choose?
- Need cash now or want to exit: lean toward a sale.
- Recent, collectable accounts and capacity to oversee a vendor: contingency may net more.
- Check licensing and bonding in the debtors' states, complaint history, data security, and whether the counterparty buys or only places.
- Get the structure (purchase, assignment or placement), price or fee, and recourse terms in writing.
Selling a court judgment? See how to sell a judgment. Business receivables? See selling B2B debt.
See what your accounts could sell for
Free, no-obligation. We match sellers with vetted, licensed buyers.
What else do sellers ask?
Can I sell my debt to a collection agency?
Sometimes. Some agencies and debt buyers purchase accounts outright; most collection agencies work on contingency, keeping a fee from what they collect. Ask which one is being offered.
Is it better to sell debt or place it with a collection agency?
Selling gives certain cash now and ends your involvement. Contingency can return more on collectable accounts but pays nothing if nothing is collected and keeps you involved.
How much do debt buyers pay?
It varies widely by debt type and age. The FTC's 2013 study of large debt buyers found an average of 4.0 cents per dollar of face value, higher for newer debt and lower for older debt.
Information only, not legal, tax or accounting advice. Verify with counsel before acting. Price figures are third-party estimates, not offers. Last reviewed: October 2026.