/biz/ - Business & Finance

On This American Life I heard about people who buy toxic debt at huge mark downs, think $1000 for $100,000 in debt. At that point the buyer has the right to collect that toxic debt.

Obviously these companies sell the debt because they don't believe they can collective the principle, but those who buy the discounted debt feel they can at least make a profit on what they spend buying the toxic debt.

You could do the humane thing and settle with someone who owes a ridiculous amount of debt for a paltry sum per month.

Has anyone thought of doing this? How would one go about buying debt?