Recently heard of a church purchasing $3.3 million in resident debt for 15k and then cancelling all of it.
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People can owe companies and organizations money which realistically they will never pay back. Maybe some of them will pay eventually, or maybe they will pay partially, but some debts are just a lost cause.
Many companies don’t want to go through the hassle of trying to collect on such delinquent debts perpetually, or keep them on their books forever. Instead of simply writing them off entirely they can sell them to another organization for some small fraction of the amount of the debt. Getting something for the debt is better than nothing.
Buying a debt of $1000 for $50 then saying the debtor doesn’t need to pay you is kinda cool, it gives the debtor peace of mind I guess. But on the other hand whoever sold you that debt was pretty sure they were never going to pay in the first place, and the first debt-holder already reported their failure to pay to the credit agencies so they already saw their credit score go down. All they really were saved from is being hounded by debt collectors.
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