velkakirjahanke

Velkakirjahanke is a Finnish term that translates to "debt acquisition" or "debt purchase." It refers to the process where a company, often referred to as a debt purchaser or debt buyer, acquires outstanding debts from original creditors. These debts are typically those that have become delinquent or defaulted, meaning the original debtors have failed to make payments.

The original creditors, such as banks, credit card companies, or utility providers, sell these debts to debt purchasers at a significantly reduced price. This allows the original creditor to recoup some of the losses and free up their resources. The debt purchaser then becomes the new owner of the debt and is responsible for collecting the outstanding amount from the debtors.

Debt purchasers often operate by employing collection agencies or in-house collection teams to contact the debtors. Their goal is to recover as much of the debt as possible, although they will rarely recover the full original amount. The profitability of velkakirjahanke for the purchaser lies in the difference between the price they paid for the debt portfolio and the total amount they manage to collect.

This practice is a common part of the financial industry, both in Finland and internationally. It can provide a way for consumers to resolve old debts, although the process can sometimes be aggressive, and debtors may face challenges in negotiating repayment terms. Regulations exist in many jurisdictions to govern the practices of debt purchasers and collectors to protect consumers.