Bad Debt Purchases
In Florida.

Some accounts are never going to pay you. They sit on your books, they cost you time, and they return nothing. Marcadis Law buys bad debt: we pay you cash for charged-off accounts, take over the accounts and everything that comes with them, and turn a dead receivable into money you can use now.

Buying your charged-off accounts and turning them into cash

Every business that extends credit ends up with a drawer of accounts that will never pay. The customer disappeared, or disputes everything, or simply has nothing. You have sent the letters. Maybe you placed the accounts with an agency and got a fraction back. At some point the accounting department charges them off, and the file goes into the drawer, where it is worth exactly nothing to you. Those accounts are what we buy.

What a bad debt purchase is

A bad debt purchase is the sale of charged-off receivables to a buyer who pays a price for them and takes over the right to collect. The seller receives cash, removes the accounts from its books, and is done with them. The buyer, in this case Marcadis Law Firm, assumes the accounts, the collection work, the cost, the compliance obligations, and the risk. If the buyer collects more than it paid, that is the buyer's return. If it collects less, that is the buyer's loss. Either way the seller has been paid.

We buy portfolios of consumer and commercial accounts from Florida businesses and lenders: retail and service receivables, medical and professional balances, auto and equipment deficiencies, commercial invoices, credit-card and line-of-credit charge-offs. Portfolios do not have to be large. A regional business with a few hundred accounts is a normal seller for us. What matters is that the accounts are documented and that the underlying debt is legitimate.

Why this matters to your bottom line

Charged-off debt returns something to you only if someone keeps working it, and most businesses cannot justify the cost. Collecting bad debt in Florida requires a call center that operates inside the consumer-collection statutes, skip-tracing tools, litigation capacity in sixty-seven counties, and lawyers who are in court every week enforcing judgments. We have all of that, because it is what this firm does. That is why we can pay for accounts you have written off, and why the price is real money rather than a contingency you may never see.

The price for bad debt is a fraction of face value, and no one should pretend otherwise. It reflects the age of the accounts, the documentation, the type of debt, and how many collectors have already worked it. But cents on the dollar, paid now, is more than the nothing the drawer is producing. Selling also ends the administrative drag: no more statements, no more disputes, no more calls from debtors who want to argue. Once the sale closes, the accounts are ours, and the inquiries come to us.

Just suppose

The following is an illustrative example, written to show how the process works. It is not a real client, a real matter, or a promise of any result.

Imagine you are the controller for a chain of outpatient physical-therapy clinics based in Boca Raton, with locations from Delray Beach to Fort Lauderdale. Over four years the clinics have accumulated about 1,900 patient balances that were never paid: co-pays, deductibles, and self-pay accounts, averaging a little over $600 each, totaling roughly $1.2 million in face value. The accounts have been through your billing company and a collection agency. The agency returned 6 percent and closed the rest. Your CFO wants the receivable off the balance sheet before the year-end audit, and your front-desk staff are tired of fielding calls about balances from three years ago.

You send the portfolio for evaluation: an account-level spreadsheet with balances, dates of service, last payment dates, and patient contact information, plus a sample of the intake paperwork that documents the patient's financial responsibility. Within a week you receive a purchase offer. The offer excludes accounts that are past the statute of limitations, accounts of patients who have filed bankruptcy, and accounts with no signed financial-responsibility form, because those cannot be collected lawfully and we do not buy what we cannot collect. On the remaining accounts, the price is stated as a percentage of face value, paid at closing.

You accept. A purchase agreement and bill of sale are signed, the data file is transferred, and the funds arrive by wire. From that day, patients who call the clinic about an old balance are referred to us. The accounts are worked under the Fair Debt Collection Practices Act and Florida's Consumer Collection Practices Act, by a firm that will be around to answer for how it did so. The clinics have cash, a cleaner balance sheet, and a quieter front desk.

How selling bad debt works

It starts with a data file: one row per account, with the balance, the dates the account was opened, last paid, and charged off, the debtor's identifying and contact information, and the type of debt. We review the file for age, documentation, bankruptcy and deceased-debtor screens, and collectability, and we ask for a sample of the underlying documents. From that we price the portfolio and send an offer, which identifies any accounts we are excluding and why. If you accept, we sign a purchase agreement that warrants the accounts are genuine and transfers them to us, together with a bill of sale and the account-level data. Payment is made at closing. After closing, the accounts are ours; we handle every inquiry, dispute, and payment, and we ask only that you forward any contact you receive.

Sellers who plan to sell regularly, for example on a quarterly charge-off cycle, can set up a standing arrangement so that each new batch is priced and closed on a schedule.

Common questions

What kinds of accounts do you buy?

Consumer and commercial charged-off receivables from Florida businesses and lenders: retail, medical, professional services, auto and equipment deficiencies, commercial invoices, credit cards, and lines of credit. If you are not sure whether your portfolio fits, send the file and we will tell you.

How much will I get?

A percentage of face value that depends on the age, type, and documentation of the accounts and on how many times they have already been worked. We quote a firm price after reviewing the file. It will be a fraction of face, and it will be more than the accounts are producing now.

What happens to my customers after the sale?

They become our accounts, collected within the consumer-collection statutes. A sale does not license anyone to treat your former customers badly, and a law firm has more to lose than anyone from doing so.

Is there a minimum portfolio size?

No fixed minimum. Small portfolios are evaluated the same way; the economics simply have to work for both sides.

The discipline behind the result

We buy bad debt because we know how to collect it, by the book, at a scale that makes the purchase worthwhile for you and for us. Send the data file. We will tell you what it is worth. Call (813) 288-1881.