Charles J. Schneider, P.C.certified consumer bankruptcy specialist
forms for your office visit
call today 734-237-1523
Practice Areas Menu In This Section

Activist groups buy medical debt, forgives it

A lot of Michigan readers are already familiar with the activist movement Occupy Wall Street. Less well known is the off-shoot group Strike Debt, aimed specifically at advocating for consumers and borrowers struggling with debt. One project of this group has been to buy consumer debt from credit companies in the same way that a debt collection firm would, for pennies on the dollar.

Recently the group bought nearly $15 million in debt for about $400,000. The debt mainly consisted of medical debt, which many know is a leading cause of bankruptcy in the United Sates. Instead of collecting as much of the debt as possible the way a typical debt buyer would, the group simply forgave the debt, informing individuals that their obligations had been satisfied.

This concept is novel if nothing else and presents an interesting way for activists to make a point about debt and debt collection, since they publicize the low cost of forgiving this debt. However, for borrowers who are already in trouble it does not offer a concrete solution to their situation. In addition, the practice may also be ripe for imposters seeking to obtain personal financial information or a social security number by posing as a nonprofit or activist group seeking to buy and forgive debt.

Instead of waiting by phone to get the call that one has won the debt lottery, it is better to take a lesson from these activists. Mainly, that companies are quite willing to settle outstanding debts for less than the total amount and often do when they sell the debt to collections companies. Instead of going through that process, borrowers have the choice to seek help from an experienced advocate to help renegotiate or refinance debt themselves, without high interest rates, penalties, or harassing phone calls.

Source: TheGuardian.com, "Occupy Wall Street activists buy $15m of Americans' personal debt," Adam Gabbatt, Nov. 12. 2013

No Comments

Leave a comment
Comment Information
  • rating

    Posted by MaryDecember 11, 2015

    "I am overwhelmed by your response to my call, even 10 years after my bankruptcy was discharged. You have more knowledge and expertise than I could have imagined. Because of you, my fears have been put to rest. For that, I'm so very grateful. Thank you many times over. "

  • rating

    Posted by ClientOctober 26, 2010

    "... I was extremely impressed with Charles' understanding of the bankruptcy laws to the extent that I felt certain that my best interests were always at the forefront. "

  • rating

    Posted by MarleneJanuary 8, 2014

    He helped me thru my 1st bankruptcy and now the second. I had no idea what to expect , but they kept me informed and answered all my questions. Mr. Schneider is the most experienced and knowledgeable lawyer I have ever met. If you have to file call this attorney first!

  • Avvo Rating 10.0 superb | Top Attorney Bankruptcy
  • Rated By Super Lawyers Charles J. Schneider | visit superlawyers.com | super lawyers 2011-2015
  • Avvo Ratting 10.0 superb Top attorney chapter 7
  • Avvo clients' choice 2014 | chapter 7
  • ICLE CONTRIBUTOR
  • American board of certification | certified consumer bankruptcy specialist
  • AV lexisNexis Martindale-Hubbell Peer Review Rated for ethical standards and legal ability
email us for a response

Let us evaluate your situation
and identify solutions

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy