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Charity buys and erases past-due medical debt

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Established Contributor

Charity buys and erases past-due medical debt

A pair of retired debt collectors are now using their expertise to buy millions of dollars in past-due medical debt for pennies on the dollar. But instead of hounding people to pay, they send letters saying the debt is gone.

https://apnews.com/29dac550cf02464d8cf62f9bf11432f0

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Senior Contributor

Re: Charity buys and erases past-due medical debt

There aren't enough kudo buttons on this site for such a wonderful story!









Message 2 of 6
Established Contributor

Re: Charity buys and erases past-due medical debt

My understanding is that the medical debt which this charity purchases and then forgives has already been deemed uncollectable, usually because the statute of limitations has run on it.  That is why they are able to purchase it for pennies on the dollar.  Just because a debt is barred by the SOL does not mean a unscruplous debt collector will still not try to collect on it.  We have had such reports on here.  So this charity is performing a service in removing the debt for possible fraudulent and unscruplous debt collects, but they are not really paying off recent and collectable medical debt.  I could be mistaken about this and don't mean to demean a valid charity.  

Message 3 of 6
Established Contributor

Re: Charity buys and erases past-due medical debt

@rbentley: In response, I believe you are INCORRECT. if you READ THE ARTICLE and OBSERVE the date the movement first launched as well as the debt purchase dates, you would assume that the SOL may not have run out on these delinquent debts. No where in the article does it indicate that the debts purchased were zombie debts. The article is in regard to the charity PURCHASING delinquent debts, subsequently ERASING the debt from consumer credit profiles--not directly paying them off.

Life was a lot simpler when what we honored was father and mother, rather than all major credit cards. ~Robert Orben

SCORES: Excellent · 830 to 848
INQUIRIES: 0
UNIVERSAL REVOLVERS: $200K Club
NUMBER OF CC ACCOUNTS: Less than 10
CARD USAGE: Minimal
CREDIT HISTORY: Very Lengthy · Seasoned Accounts
INCOME: Sufficient
UTIL: 1-2%
PYMTS: 100% Positive · Always PIF · AZEO
INSTALLMENTS: No thanks!
ASSETS: 100% Equity
TOTALLY REFUSE TO: Pay Interest or Annual Fees, Combine Accounts, Reduce Limits, Submit 4506-T, SCT, App Spree, Accumulate Inquiries, Do business with Comenity, Synchrony, Cap One, Wells Fargo, Citi, Barclays or any other credit-cancerous lending institutions
Message 4 of 6
Frequent Contributor

Re: Charity buys and erases past-due medical debt

A nice feel good story, for a change.
Message 5 of 6
Frequent Contributor

Re: Charity buys and erases past-due medical debt

Great story. Also, John Oliver from "Last Week Tonight" on HBO did this a little over 2 years ago by starting his own debt collection company and buying 15 million in out of statute medical debt for around $60,000. The whole segment of the show is on YouTube, and is very enlightening: https://youtu.be/hxUAntt1z2c?t=1025

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