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Comment by noonespecial | Hacker News Reader

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.

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

'did' exist. They aren't taking donations anymore. Bummer.

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

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.

> 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/h...

Basically any TAL coverage on schools makes me want to pull my hair out.

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

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.

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.

"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.

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