Sample Seller Questionnaire for Debt Sales

The Seller Questionnaire for debt sales is a good evaluation tool used to assess the value of a debt portfolio. It covers various aspects of debt sales including portfolio details, recovery rates, legal efforts, documentation, and more. This questionnaire helps ensure a smooth and successful debt sale process by providing valuable information about the portfolio being sold.

Portfolio Due Diligence Questionnaire

Please complete the following questions and return this completed form via email.

1. Portfolio Valuation
   • Dollar Amount: ________
   • Number of Accounts: ________
2. Seller Information
   • Are you the originator or a reseller/broker for this portfolio?
     • Originator: [ ]
     • Reseller/Broker: [ ]
3. Account Details
   • What types of accounts are included in this portfolio? (Check all that apply)
   • Specify the balance (Principal, Interest, Fees): ________
4. Charge-off Policy
   • What is the charge-off policy for these accounts?
5. Previous Sales
   • Have you ever sold charged-off accounts before? If yes, how many times?
     • Times: ________
6. Collection History
   • How many agencies or attorneys have these accounts been sent to for collection? (Check all that apply)
   • Have all accounts that were sent to agencies/attorneys been recalled? Please explain: ________
7. Agency and Attorney Information
   • Which agencies or attorneys have these accounts been sent to? (Check all that apply)
8. Collection Timeframe
   • When were these accounts last sent to an agency or attorney for collection?
9. Recovery Rate
   • What was the average recovery rate for these accounts over a 12-month period, by placement level?
10. Handling by Agencies
    • How were the accounts handled by the agencies or attorneys you used for collection?
11. Settlement Offers
    • What settlement offers have been made to these accounts?
    • When was the last time a mass settlement offer was made?
12. Legal Efforts
    • What kind of legal efforts have been used for these accounts? Please describe your suit guideline requirements.
13. Bankruptcy and Deceased Checks
    • Have these accounts been checked for bankruptcies and deceased individuals?
      • Yes: [ ] No: [ ]
    • Please add any comments: ________
14. Scoring
    • Have these accounts been scored since the charge-off?
    • Please add any comments: ________
15. Selection Process
    • What was the process used to determine which accounts to sell?
16. Reporting and Documentation
    • How exactly do your name and reporting appear on the credit bureaus currently?
    • Which credit bureaus are these accounts reported to? (Check all that apply)
    • How will you report these accounts to the credit bureaus after the sale?
17. Solicitation Practices
    • What kind of solicitation practices were used to obtain these customers? (Check all that apply)
18. Credit Approval Guidelines
    • What were the guidelines for approval of credit for these customers?
19. Ownership and Title
    • Did you originate these accounts? If not, please describe the acquisition process and provide proof of ownership.
    • If you did not originate these accounts, can you provide copies of the chain of title?
20. Security Interests
    • Do these accounts have any security interests?
      • Yes: [ ] No: [ ]
21. Commercial Accounts
    • Are there any commercial accounts included in this portfolio? If so, how many?
22. Loan Type
    • If these are installment loans, are they direct or indirect?
      • Direct: [ ] Indirect: [ ] Both: [ ]
23. Auto Loans and Insurance
    • If these are auto loans, is there force-placed insurance included?
      • Yes: [ ] No: [ ]
24. Interest and Fees
    • Do these accounts include post-charge-off interest or fees?
      • Yes: [ ] No: [ ]
25. Documentation Availability
    • What type of documentation or media is available, and what is the percentage available and the time frame to obtain it? Please provide the following information:
      • TYPE % AVAILABLE TIME FRAME DESCRIPTION
26. Documentation Storage
    • How is the documentation kept, and what is the process for obtaining it?
27. Compliance and Legal Status
    • Have any of these accounts been a party to litigation against the original creditor via Class Action or otherwise? Please explain.
    • Does the original lender’s card member agreement or contract require arbitration rather than litigation? Please explain.
    • Has the original lender been fined, scrutinized, or sanctioned by the FTC or any other state or federal agency regarding its collection practices or underwriting guidelines?
      • Yes: [ ] No: [ ]
28. Tax Reporting
    • Have any of these accounts received a 1099-c?
      • Yes: [ ] No: [ ]
29. Additional Information
    • If you have any additional comments that would help evaluate your portfolio, please indicate them here.
    • How many other bidders are there for this portfolio?
    • Who are the other bidders?
    • What price are you looking to sell these accounts for?
    • Are you willing to sell the portfolio by state, region, or product type?
      • Yes: [ ] No: [ ]
    • Please list all available fields that will be made available to the purchaser at the time of the final data run.
    • Is the resale of accounts permitted?
      • Depends: [ ] Yes: [ ] No: [ ]

I am an authorized representative of ___________, and the above answers to these due diligence questions are true and accurate to the best of my knowledge.

Signature: _________________ Date: ___________

Hartman Managing Member

Fitzgerald Advisors, LLC is a well-established investment firm that focuses on buying and selling whole loans, commercial and consumer debt portfolios, and real estate notes.

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