The first thing you may want to do before getting in the debt collection business, debt collection 101 let's call it, is learn the correct spelling of the word debt.
Debt collection is something that is highly regulated by law, at least in the US. So is credit reporting.
I could see an existing debt collection business getting into collecting bitcoin debt if they really wanted a challenge, but I don't see someone just reinventing the wheel from scratch. Half the problem is people don't know or can't prove the real world identity of the people they're doing business with.
Ironically, companies like PayPal, Visa, and MasterCard have solved this problem for a small fee of around 2.99%. Get burned, initiate a chargeback, problem solved.
The solution is realizing that Bitcoin is the wrong tool for certain jobs, and to not use it where that's the case.
Topic: The first BTC Debt Collection Agency and DUNS-like database - page 2. (Read 3272 times)
This is it kids, we've discussed it again and again and I think it's time we do this properly.
We need two things:
1. A debt collection agency
2. A way of registering and scoring individuals.
For the first I propose the following:
I am creating a debt collection agency. On behalf of the agency I will need local collectors in various areas. The financials will be arranged as follows:
a. "Buy Out Plan": I will buy off the debt off your back for 20% of its value; or
b. "Collection Plan": I will collect it on your behalf and keep as a fee 60% of it.
As I can't be everywhere I will require the assistance fo local debt collectors who will receive (risk-free) 40% of the fee in Plan A (Buy Out) and 60% in Plan B (Collection). As I will be buying the dept in Plan A and thus putting myself in risk the collectors will get less obviously so the Agency can brake even. In Plan B (simple collection) the agency gets a minimal fee for doing the background research and facilitating the service but the collectors get the bulk of it.
I provide you with the following example for a debt of 200BTC:
If the collector gets the debt from the debtor they get paid their percentage either way they have nothing to lose.
In regards to part 2 of my proposal, I propose a scoring system similar to that used by Dun & Bradstreet. Each physical or legal person gets assigned a nine digit number. This number is linked to a historic score that changes as the legal of physical person's situation changes. The Agency will be responsible for veryfing their identity and maintaining an up-to-date database. Participation is voluntary.
As an example, Party A would like to do business with Party B, Party A can request for a fee Party B's number, score (based on trading history, character, age, location and other risk factors) and associated report (private and confidential information of Party B will NOT be released to Party A just an indication that they are on file). In the occasion where Party B is not in the database, a request will be made directly to Party B by the Agency without necessarily naming Party A.
1. Party B retains the freedom to decline to voluntarily provide that information. Party A will be informed and they can make their own conclusions if they want to go ahead.
2. Party B, chooses to participate in the database, pays a fee, provides the relative documentation and is assigned a number and a score.
It goes without saying that anyone can volunteer without waiting for a request.
In case Party B is indeed a scammer and the information provided by the Agency have been wrong and a debt cannot be collected by the Agency, the Agency will use its own funds to repay up to 60% of total sum to Party A.
Ideas, Input, Interest, Corrections? Let's discuss...
We need two things:
1. A debt collection agency
2. A way of registering and scoring individuals.
For the first I propose the following:
I am creating a debt collection agency. On behalf of the agency I will need local collectors in various areas. The financials will be arranged as follows:
a. "Buy Out Plan": I will buy off the debt off your back for 20% of its value; or
b. "Collection Plan": I will collect it on your behalf and keep as a fee 60% of it.
As I can't be everywhere I will require the assistance fo local debt collectors who will receive (risk-free) 40% of the fee in Plan A (Buy Out) and 60% in Plan B (Collection). As I will be buying the dept in Plan A and thus putting myself in risk the collectors will get less obviously so the Agency can brake even. In Plan B (simple collection) the agency gets a minimal fee for doing the background research and facilitating the service but the collectors get the bulk of it.
I provide you with the following example for a debt of 200BTC:
If the collector gets the debt from the debtor they get paid their percentage either way they have nothing to lose.
In regards to part 2 of my proposal, I propose a scoring system similar to that used by Dun & Bradstreet. Each physical or legal person gets assigned a nine digit number. This number is linked to a historic score that changes as the legal of physical person's situation changes. The Agency will be responsible for veryfing their identity and maintaining an up-to-date database. Participation is voluntary.
As an example, Party A would like to do business with Party B, Party A can request for a fee Party B's number, score (based on trading history, character, age, location and other risk factors) and associated report (private and confidential information of Party B will NOT be released to Party A just an indication that they are on file). In the occasion where Party B is not in the database, a request will be made directly to Party B by the Agency without necessarily naming Party A.
1. Party B retains the freedom to decline to voluntarily provide that information. Party A will be informed and they can make their own conclusions if they want to go ahead.
2. Party B, chooses to participate in the database, pays a fee, provides the relative documentation and is assigned a number and a score.
It goes without saying that anyone can volunteer without waiting for a request.
In case Party B is indeed a scammer and the information provided by the Agency have been wrong and a debt cannot be collected by the Agency, the Agency will use its own funds to repay up to 60% of total sum to Party A.
Ideas, Input, Interest, Corrections? Let's discuss...
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