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The companies buy debts for pennies on the dollar and then try to recover what they can from debtors. So if the debt can be "bought" for pennies per dollar, wh

The companies buy debts for pennies on the dollar and then try to recover what they can from debtors. So if the debt can be "bought" for pennies per dollar, why can't it be settled for this amount by the unfortunate people at the end of the bludgeoning stick? You know what would be fun? A site that lets people get together and buy these debts and then instead of hounding the debtors, forgives the debts and then sends a nice card informing the debtor that they are now forgiven this debt with the names of all of the people who kicked in to wipe it out.

mkeeter 11y ago
Such a program already exists: http://rollingjubilee.org/ http://rollingjubilee.org/
- moultano 11y ago
  'did' exist. They aren't taking donations anymore. Bummer.
brownbat 11y ago
> So if the debt can be "bought" for pennies per dollar, why can't it be settled for this amount by the unfortunate people at the end of the bludgeoning stick? This is basically what an attorney will do for you (especially if you get one before sent to collections). Because of the vagaries of attorneys and creditors, your mileage may vary. I'm guessing the availability of quality legal services is also poorly distributed, compounding the entire problem in the article. I can't help but read these stories and see them as a continuation of problems with redlining and school district funding that are providing a relentless headwind to racial equality. For more frustrating neighborhood disparities: http://www.thisamericanlife.org/radio-archives/episode/512/house-rules http://www.thisamericanlife.org/radio-archives/episode/512/h... Basically any TAL coverage on schools makes me want to pull my hair out.
omgbear 11y ago
You often can. Sending a check marked 'Payment in full' is the common law way to do so, but it varies by state. Looks undetermined in California. http://www.yourlegalcorner.com/articles.asp?cat=biz&id=150 http://www.yourlegalcorner.com/articles.asp?cat=biz&id=150
- Consultant32452 11y ago
  If you intend to negotiate something like them you need to GET IT IN WRITING FROM THEM before sending payment. If they don't send you an invoice or whatever with the proper total amount due on it, DO NOT SEND OUR MONEY. They will often lie to get you to send a payment and if you can't prove you negotiated the lower amount you will still owe.
Asparagirl 11y ago
A targeted version of this idea exists, for people's overdue water bills in Detroit and Baltimore. Tiffani Bell is the co-founder and director: https://www.detroitwaterproject.org https://www.detroitwaterproject.org
nommm-nommm 11y ago
Collections companies very often (if not always) offer to settle for a fraction of the debt owed. Many times in their first attempt to collect.
im2w1l 11y ago
The value of a debt is nominal amount times probability of payment. If it could be settled for pennies, then it would be worth even less. This may or may not be a desirable outcome.
Someone 11y ago
"So if the debt can be "bought" for pennies per dollar, why can't it be settled for this amount by the unfortunate people at the end of the bludgeoning stick?" Statistics and overhead are part of the reason. You can buy debt for pennies on a dollar because a lot of it cannot be collected because the debtors do not have the money and/or are hard to locate.

mkeeter 11y ago

Such a program already exists: http://rollingjubilee.org/ http://rollingjubilee.org/

moultano 11y ago
'did' exist. They aren't taking donations anymore. Bummer.

brownbat 11y ago

> So if the debt can be "bought" for pennies per dollar, why can't it be settled for this amount by the unfortunate people at the end of the bludgeoning stick? This is basically what an attorney will do for you (especially if you get one before sent to collections). Because of the vagaries of attorneys and creditors, your mileage may vary. I'm guessing the availability of quality legal services is also poorly distributed, compounding the entire problem in the article. I can't help but read these stories and see them as a continuation of problems with redlining and school district funding that are providing a relentless headwind to racial equality. For more frustrating neighborhood disparities: http://www.thisamericanlife.org/radio-archives/episode/512/house-rules http://www.thisamericanlife.org/radio-archives/episode/512/h... Basically any TAL coverage on schools makes me want to pull my hair out.

omgbear 11y ago

You often can. Sending a check marked 'Payment in full' is the common law way to do so, but it varies by state. Looks undetermined in California. http://www.yourlegalcorner.com/articles.asp?cat=biz&id=150 http://www.yourlegalcorner.com/articles.asp?cat=biz&id=150

Consultant32452 11y ago
If you intend to negotiate something like them you need to GET IT IN WRITING FROM THEM before sending payment. If they don't send you an invoice or whatever with the proper total amount due on it, DO NOT SEND OUR MONEY. They will often lie to get you to send a payment and if you can't prove you negotiated the lower amount you will still owe.

Asparagirl 11y ago

A targeted version of this idea exists, for people's overdue water bills in Detroit and Baltimore. Tiffani Bell is the co-founder and director: https://www.detroitwaterproject.org https://www.detroitwaterproject.org

nommm-nommm 11y ago

Collections companies very often (if not always) offer to settle for a fraction of the debt owed. Many times in their first attempt to collect.

im2w1l 11y ago

The value of a debt is nominal amount times probability of payment. If it could be settled for pennies, then it would be worth even less. This may or may not be a desirable outcome.

Someone 11y ago

"So if the debt can be "bought" for pennies per dollar, why can't it be settled for this amount by the unfortunate people at the end of the bludgeoning stick?" Statistics and overhead are part of the reason. You can buy debt for pennies on a dollar because a lot of it cannot be collected because the debtors do not have the money and/or are hard to locate.