Accounts Receivable Management Featured Article

Occupy Wall Street Launches Project to Buy - and Then Forgive - Consumer Debt

November 13, 2012

While the Occupy Wall Street movement has achieved one of its goals – the re-election of President Obama – the activist group is turning to another goal: the reduction or elimination of high consumer debt. Organizers of the Occupy Wall Street movement announced this week that they will be using an interesting technique to accomplish their goal: the plan to become debt buyers. However, they won’t be setting up collections call centers: once they purchase the debts, they will forgive them.

Called “Rolling Jubilee”, the plan is to use money from donations to buy distressed consumer debt from lenders at a marked down price, just as debt collection agencies normally would, and then wipe it out. The hope is that the liberated debtors will themselves contribute to the fund, "rolling" the jubilee forward, Business Insider is reporting this week.

The group has already started on its mission. It has reportedly purchased $14,000 in face value consumer debt for $500, forgiving the balances on all accounts. The group said on its website that it intends to directly compete with debt buyers and brokers:

“If you’re a debt broker, once you own someone’s debt you can do whatever you want with it — traditionally, you hound debtors to their grave trying to collect. We’re playing a different game. A MORE AWESOME GAME,” said the Rolling Jubilee website.

According to a counter on the site, the group has raised nearly $110,000 today (Tuesday, November 13) toward a goal of $2.2 million. The site notes that consumer debt is often due to family crises, and:

  • 77.5 percent of American households are in debt
  • 62 percent of bankruptcies are due to illness
  • U.S. student loan debt is over $1 trillion
  • One in seven Americans is being pursued by a debt collector
  • 40 percent of indebted households use credit cards to pay for basic necessities

The group said that it did plenty of research before making its first move, consulting with attorneys, the IRS, and “moles” within the debt buying industry. The type of debt targeted is not known, but OWS mentions student loans and medical debt in its Rolling Jubilee launch.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Miami 2013, Jan 29- Feb. 1 in Miami, Florida.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.




Edited by Brooke Neuman

Article comments powered by Disqus

Related Accounts Receivable Management Articles

CSG's Video Billing Initiative keeps Pace with Time Warner's Seasoned Customers

Whether it's an offshoot of wanting to genuinely enhance customer service or whether it's another gimmick to stay alive in a world of cut-throat competition, we'll never know, but no matter what it is, cable companies are coming out with new ways to increase customer loyalty and reduce service cost. Time Warner is going next-generation with its customer care and is now wooing customers with CSG's video billing initiative- SmartVideo. [ Read More ]
10/14/2014

Esker Energizes Direct Energie with Digitized Handling of Vendor Invoices

Document management solutions provider Esker helps DIrect Energie automate accounts payable. [ Read More ]
10/13/2014

Alta Vista Technology Enhances Its Portfolio with Intacct Cloud Financial Applications

Alta Vista Technology adds Intacct cloud-based financial system to its capabilities. [ Read More ]
10/13/2014

Fourth Circuit Court of Appeals Rules for Violation of TCPA

The Telephone Consumer Protection Act was passed in 1991 as an amendment to the Communications Act of 1934. The amendments provide certain protections for consumers and restrictions for solicitors, including: the barring of solicitous calling between the hours of 9 p.m. and 8 a.m. and the requirement that solicitors respect the National Do Not Call Registry. It also prohibits using autodialers in certain situations, and a recent ruling from the Fourth Circuit Court of Appeals ruled that autodial… [ Read More ]
10/13/2014
FREE Accounts Receivable Management enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!