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Originally posted by adjensen
Bit of a misnomer in the title, as this action wiped $5m off of selected Americans' debt, not the country.
For those who don't understand how it works, when a debt is turned over to a collection agency, they pay next to nothing (pennies on the dollar) for it and make their money by hounding the debtor until they pay back more than what the collection agency paid for it (technically, they can collect 100% of the amount owed, but rarely do.)
So, by setting oneself up as a "collection agency", one can buy someone's significant debt for next to nothing, and then just cancel it -- the person owes nothing, and the black mark on their credit report eventually goes away, as it will no longer be recorded.
Who makes up the difference between what was borrowed and what was paid by the "collection agency"? The lender takes a loss, and eventually gets it back by overcharging the rest of us.
On one level, commendable, as it helps someone being smothered by debt, on another level reprehensible, as it just sticks you and I with the original defaulter's bills.edit on 16-11-2012 by adjensen because: (no reason given)
Ever heard of Jill Stein? She was also running for president, green piece I believe. Anyhow, she had made a comment about why are we baliing banks out when we should be baliing people out of school loans.
Classes exist, because mathematically, they have to. I don't consider myself wealthy. Far from it. I get by week to week. But I get by. Someday, through hard work, the sun might shine on my ass for a change. If it doesn't, I'll still get by, because I understand that it is on me to make sure my family and I get by. As much as I dislike the current administration, it isn't their job (and part of the reason I dislike them is because of this) to scoot everyone along...
On one level, commendable, as it helps someone being smothered by debt, on another level reprehensible, as it just sticks you and I with the original defaulter's bills.
Originally posted by MasonicFantom
This is a ridiculous publicity stunt with zero real value.
Originally posted by MidnightTide
reply to post by hawkiye
Alright, I can agree with you somewhat about the banksters fraud....so lets just say we are able to clean up that mess. What happens after that? What happens to those who don't meet their obligations?
Originally posted by MidnightTide
reply to post by XPLodER
I might as well do the same, and then cry when I can't pay off my bills.