OWS- A bailout of the people by the people

nospokenwordsnospokenwords Posts: 65
edited November 2012 in A Moving Train
http://rollingjubilee.org/

This is very cool.

Occupy Wall Street plans to buy distressed consumer debt for pennies on the dollar … and then forgive it.


OWS is going to start buying distressed debt (medical bills, student loans, etc.) in order to forgive it. As a test run, we spent $500, which bought $14,000 of distressed debt. We then ERASED THAT DEBT. (If you’re a debt broker, once you own someone’s debt you can do whatever you want with it — traditionally, you hound debtors to their grave trying to collect. We’re playing a different game. A MORE AWESOME GAME.)

This is a simple, powerful way to help folks in need — to free them from heavy debt loads so they can focus on being productive, happy and healthy. As you can see from our test run, the return on investment approaches 30:1. That’s a crazy bargain!

Now, after many consultations with attorneys, the IRS, and our moles in the debt-brokerage world, we are ready to take the Rolling Jubilee program LIVE and NATIONWIDE, buying debt in communities that have been struggling during the recession.
Post edited by Unknown User on

Comments

  • polaris_xpolaris_x Posts: 13,559
    sounds like a good idea ... will look into this ...
  • cincybearcatcincybearcat Posts: 16,492
    traditionally, you hound debtors to their grave trying to collect.


    Oh the horror, making people pay for stuff that they agreed to pay for...the nerve!!!

    But, as far as this goes, this seems like a good idea from this group. It;s what they believe in, so they are putting their $ where their collective mouths are.
    hippiemom = goodness
  • hedonisthedonist Posts: 24,524
    traditionally, you hound debtors to their grave trying to collect.


    Oh the horror, making people pay for stuff that they agreed to pay for...the nerve!!!

    But, as far as this goes, this seems like a good idea from this group. It;s what they believe in, so they are putting their $ where their collective mouths are.
    I agree with you on both parts.

    And I have to admit I'm a bit frustrated/irritated that I'm afforded no breaks like this. We took on a mortgage within our means, have paid on time for 21 years, have behaved financially responsible even when our finances were fucked for awhile there. I know I'm not being punished for that, but sometimes it feels like it...
  • pjl44pjl44 Posts: 9,810
    Something about this doesn't add up. Are these folks that have already gone to collections? Filed bankruptcy? If it's that simple to purchase and forgive, couldn't anyone do it? If I had $15,000 in unsecured debt that could be purchased, I could give someone else $500 to purchase and forgive it? What am I missing?
  • pjl44 wrote:
    Something about this doesn't add up. Are these folks that have already gone to collections? Filed bankruptcy? If it's that simple to purchase and forgive, couldn't anyone do it? If I had $15,000 in unsecured debt that could be purchased, I could give someone else $500 to purchase and forgive it? What am I missing?

    That's what I get from it - it's bad debt. A company sells a bad debt to a collection agency for pennies on the dollar. Instead of the collection agency buying the debt and relentlessly pursuing the bad debt, they'd buy it and write it off.
  • pjl44pjl44 Posts: 9,810
    pjl44 wrote:
    Something about this doesn't add up. Are these folks that have already gone to collections? Filed bankruptcy? If it's that simple to purchase and forgive, couldn't anyone do it? If I had $15,000 in unsecured debt that could be purchased, I could give someone else $500 to purchase and forgive it? What am I missing?

    That's what I get from it - it's bad debt. A company sells a bad debt to a collection agency for pennies on the dollar. Instead of the collection agency buying the debt and relentlessly pursuing the bad debt, they'd buy it and write it off.

    So what does the debt holder wind up with on their credit report? That they went to collections or does that get wiped if the debt is forgiven?
  • My guess is any debt being sold that cheap is already on someone's credit report for being late or not paying and even when OWS pays it off - the report will say paid but will include the nasty history for years.

    SHOW COUNT: (164) 1990's=3, 2000's=53, 2010/20's=108, US=118, CAN=15, Europe=20 ,New Zealand=4, Australia=5
    Mexico=1, Colombia=1 



  • IndifferenceIndifference Posts: 2,724
    edited November 2012
    pjl44 wrote:
    Something about this doesn't add up. Are these folks that have already gone to collections? Filed bankruptcy? If it's that simple to purchase and forgive, couldn't anyone do it? If I had $15,000 in unsecured debt that could be purchased, I could give someone else $500 to purchase and forgive it? What am I missing?

    Yes, already in collections as debt sold that low is close or past statue of limitaions for collection. The statue is different by state (6 years in MA) so that is sometimes why these debt collectors ask for a token payment say $5 - because that starts the clock all over again!

    Just to add - that the fist post mentions student loan debt - that has to be private as any federally backed SL debt has no statue of limitations anymore
    Post edited by Indifference on

    SHOW COUNT: (164) 1990's=3, 2000's=53, 2010/20's=108, US=118, CAN=15, Europe=20 ,New Zealand=4, Australia=5
    Mexico=1, Colombia=1 



  • pjl44pjl44 Posts: 9,810
    My guess is any debt being sold that cheap is already on someone's credit report for being late or not paying and even when OWS pays it off - the report will say paid but will include the nasty history for years.

    That's what I was thinking, but am not sure if there's a difference in being sent to collections and having it "forgiven" vs. some creditor actively pursuing the debt.
  • pjl44pjl44 Posts: 9,810
    pjl44 wrote:
    Something about this doesn't add up. Are these folks that have already gone to collections? Filed bankruptcy? If it's that simple to purchase and forgive, couldn't anyone do it? If I had $15,000 in unsecured debt that could be purchased, I could give someone else $500 to purchase and forgive it? What am I missing?

    Yes, already in collections as debt sold that low is close or past statue of limitaions for collection. The statue is different by state (6 years in MA) so that is sometimes why these debt collectors ask for a token payment say $5 - because that starts the clock all over again!

    Just to add - that the fist post mentions student loan debt - that has to be private as any federally backed SL debt has no statue of limitations anymore

    So they're not providing any relief to the debtor (aside from fewer harassing calls), but handing over money to a creditor that wasn't holding out hope on seeing much anyhow?
  • pjl44 wrote:
    pjl44 wrote:
    Something about this doesn't add up. Are these folks that have already gone to collections? Filed bankruptcy? If it's that simple to purchase and forgive, couldn't anyone do it? If I had $15,000 in unsecured debt that could be purchased, I could give someone else $500 to purchase and forgive it? What am I missing?

    Yes, already in collections as debt sold that low is close or past statue of limitaions for collection. The statue is different by state (6 years in MA) so that is sometimes why these debt collectors ask for a token payment say $5 - because that starts the clock all over again!

    Just to add - that the fist post mentions student loan debt - that has to be private as any federally backed SL debt has no statue of limitations anymore

    So they're not providing any relief to the debtor (aside from fewer harassing calls), but handing over money to a creditor that wasn't holding out hope on seeing much anyhow?

    Yep.

    SHOW COUNT: (164) 1990's=3, 2000's=53, 2010/20's=108, US=118, CAN=15, Europe=20 ,New Zealand=4, Australia=5
    Mexico=1, Colombia=1 



  • pjl44pjl44 Posts: 9,810
    pjl44 wrote:

    So they're not providing any relief to the debtor (aside from fewer harassing calls), but handing over money to a creditor that wasn't holding out hope on seeing much anyhow?

    Yep.

    Ha ha...there has to be something we're missing, right? I really hope someone can chime in with more info; this makes absolutely no sense.
  • pjl44 wrote:
    pjl44 wrote:

    So they're not providing any relief to the debtor (aside from fewer harassing calls), but handing over money to a creditor that wasn't holding out hope on seeing much anyhow?

    Yep.

    Ha ha...there has to be something we're missing, right? I really hope someone can chime in with more info; this makes absolutely no sense.

    Oh it gets better, as pending the amount, situation, etc. sometimes debt forgiveness is considered earned income by the IRS!

    SHOW COUNT: (164) 1990's=3, 2000's=53, 2010/20's=108, US=118, CAN=15, Europe=20 ,New Zealand=4, Australia=5
    Mexico=1, Colombia=1 



  • cp3iversoncp3iverson Posts: 8,702
    edited November 2012
    hedonist wrote:
    And I have to admit I'm a bit frustrated/irritated that I'm afforded no breaks like this. We took on a mortgage within our means, have paid on time for 21 years, have behaved financially responsible even when our finances were fucked for awhile there. I know I'm not being punished for that, but sometimes it feels like it...

    Terrific post. I don't understand why people don't just work hard and accept financial responsibilty. Good fortune for those people forgiven by this program but people shouldn't expect someone to clean up your mess. Don't live beyond your means, don't cry about your student loans, etc.. You weren't forced to sign them.

    And if you're unemployed- instead of marching and interupting people's walk to work how about interning and making connections? Or how about taking on whatever job you can get while you search? I work hard and I absolutely love my job and I feel blessed but if it all went to hell i'd man up and apply at WalMart if I had to. I surely would't stand in a park. That wouldn't pay the bills that i'm responsible for.
    Post edited by cp3iverson on
  • pjl44pjl44 Posts: 9,810
    pjl44 wrote:
    Ha ha...there has to be something we're missing, right? I really hope someone can chime in with more info; this makes absolutely no sense.

    Oh it gets better, as pending the amount, situation, etc. sometimes debt forgiveness is considered earned income by the IRS!

    COME ON. I desperately need to have this explained. This can't possibly be the biggest circle jerk in history.

  • Reading this thread makes it sounds like they have no idea!

    http://news.ycombinator.com/item?id=4760995

    SHOW COUNT: (164) 1990's=3, 2000's=53, 2010/20's=108, US=118, CAN=15, Europe=20 ,New Zealand=4, Australia=5
    Mexico=1, Colombia=1 



  • pjl44pjl44 Posts: 9,810

    Not gonna rummage around their website, but the Salon and occupy.org articles only focus on the goal of the movement and their manual. No info on this whole purchasing debt thing.
  • my wife and I have a modest house (just under 800 square feet, both of us and two kids). One car. no credit card debt. we don't go on any trips unless we have cash in the bank.

    it's pretty easy to live like that. just don't try to keep up with the joneses and be happy with what you have. everyone in first world countries should feel thankful they aren't drinking water out of a mud pit.

    instead of going to a trendy club, buy some booze and have friends over and buy some doritos. it's more fun that way anyhow.

    many of our friends use the "you only live once" motto as buying all these toys and useless things. I don't get it. and if you die too soon, your kids will be saddled with your irresponsible debt!
    Gimli 1993
    Fargo 2003
    Winnipeg 2005
    Winnipeg 2011
    St. Paul 2014
  • pjl44pjl44 Posts: 9,810

    Reading this thread makes it sounds like they have no idea!

    http://news.ycombinator.com/item?id=4760995

    You're not kidding. I got through a bunch of it and now have more questions. Someone brought up my idea:



    wheelerwj 11 hours ago | link

    hey, do you know if it is possible to buy up a specific person debt? or just general debt contracts?


    lifeguard 9 hours ago | link

    You could buy a specific corporation's debt but I think consumer bad debt is sold in big blocks of anon accounts until you are the owner.


    rapind 6 hours ago | link

    Otherwise it'd be pretty interesting if you could buy your own debt at a huge discount.


    So if they're buying anonymous accounts, how do they know how this debt was amassed? They're tugging on your heart strings with student loans and medical bills, but if they have no idea you could just be paying off someone's credit card bills, no?
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