Recently heard of a church purchasing $3.3 million in resident debt for 15k and then cancelling all of it.
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Many people in debt simply do not have the money to be able to pay of the debt, and trying to chase them around to squeeze them dry is often just not worth it for large banks who have other things to do, so they sell of the debt so that it’s not a complete write off. And since this is obviously debt that isn’t _fully_ recoverable, and takes a decent effort to recover even some, it has to be sold below value otherwise no one would buy it.
The people who buy the debt then (usually) spend their time harassing and squeezing out the debtors, hoping that they can squeeze out enough money out of the debtors to achieve a return on investment.
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