Recently heard of a church purchasing $3.3 million in resident debt for 15k and then cancelling all of it.
In: 9
I looked around and found this:
[https://www.cnn.com/2019/06/27/health/church-medical-debt-trnd/index.html](https://news.yahoo.com/church-buys-cancels-medical-debt-213100578.html)
It explains it fairly well:
“When people don’t pay debt, after a while it gets placed with collection agencies, and the debt accumulates. RIP is able to buy the debt at a reduced rate from hospitals, doctors, and even investors – who typically purchase debt at reduced rates, say 15%, and will require the debtor to pay them maybe 30%, turning a profit for the investor.”
The charity, RIP Medical Debt, purchases debt usually for around 1 cent on the dollar, and it’s after companies (usually several of them in succession) have exhausted all efforts to collect on the debt. By that point, the debt is worthless as it won’t be repaid.
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