In one year, a group of Occupy Wall Street activists has managed to buy almost $15 million of Americans’ personal debt to help them pay off their outstanding credit.
Under the name, Rolling Jubilee, and launched one year ago today, the Occupy activists purchase anonymous debt cheaply from banks and then “abolish” it, freeing individuals from their bills.
By purchasing the debt on the “secondary debt market” at bargain basement prices, the group has managed to erase more than $14.7 million of personal debt — mainly medical bills — by spending only $400,000 raised through donations.
Basically, the secondary debt market is a way for banks and lenders to cut their losses after customers have proven themselves unable to pay by getting five cents on a dollar.
(READ the full story from The Guardian)
Photo credit: Alan Cleaver via Flickr-CC