We are the 99%, and Occupy is Abolishing Debt

[Just_Believe18]

For all the naysayers of the Occupy Wall Street movement, Occupy is now involved with an activity that has done more fiscal good in reducing debt for Americans than the Tea Party has ever done in its existence:

ROLLING JUBILEE
http://rollingjubilee.org
This perhaps is one of the most amazing charities ever. This is an off-shoot group of the Occupy movement which was an organization that I was proud to be a part of (and did some work for) during its peak.

Basically, what Rolling Jubilee does is they buy bundled debt from creditors looking to sell it for pennies to the dollar. Credit agencies do this all the time with each other to unload debt and make profits off of each other. Except Rolling Jubilee just buy its and forgives the people of their debt.

For the millions of Americans who have fallen into credit, medical, and student loan debt, Rolling Jubilee is saving Americans by the bundles. Imagine a family who gets a letter in the mail saying their creditors will no longer be hunting them and compounding their debt in interest. Or a college student who still hasn't been able to find a job but is saddled in tens of thousands of dollars in student loan debt. Or the uninsured American, a victim of the system, is now able to rest in peace knowing their surgery 5 years ago has now been made off.

This is a 100% transparent charity organization that buys off and abolishes debt. The only associated costs are the paperwork, accounting, and legal fees it takes to organize its operations. All volunteers managing the fund receive no compensation for their time.

If you donate $100, you will abolish $2,000 of someone's debt!


I hope this site inspires you to donate to such an amazing charity.

[JayHawk]

How much debt have they successfully forgiven and how much overhead goes into the donation process... some clarity on their process and I may be tempted to join....

[JB3]

Just so people understand, this isn't all sunshine and roses. The biggest issue is that they have no idea whose debt they are actually buying. It could be people genuinely in need, or it could be deadbeats that just decided to stop paying their bills.

The other issues with it are far more serious, and it doesn't appear that they have actually consulted with tax attorneys.

http://www.nakedcapitalism.com/2012/...-tax-risk.html

Its a good start, but its lacking in a few key areas.

[JayHawk]

Good read JB3... seems there are a lot of thorny obstacles... however if someone owed 6,000 in debt and that counted as income that they ended up losing 1080 in taxes that is still a benefit.

Where they will run into trouble is if the banks decide they don't like the process for whatever reason and start to chase the Strike Debt folks and hamstring them with lawsuits. Based on their math however if every American donated 100 bucks then they could buy 30 billion in five cent on the dollar debt... thats a lot of debt..... we just hafta tell everyone to not pay their bills for 180 days... then donate a 100 bucks and wip[e all debt out of existence....

[JB3]

Good read JB3... seems there are a lot of thorny obstacles... however if someone owed 6,000 in debt and that counted as income that they ended up losing 1080 in taxes that is still a benefit.

Where they will run into trouble is if the banks decide they don't like the process for whatever reason and start to chase the Strike Debt folks and hamstring them with lawsuits. Based on their math however if every American donated 100 bucks then they could buy 30 billion in five cent on the dollar debt... thats a lot of debt..... we just hafta tell everyone to not pay their bills for 180 days... then donate a 100 bucks and wip[e all debt out of existence....

What they're doing is a very smart way of counter-acting a lot of the debt problems plaguing everyday people. It also looks like, for now at least, they are limiting their efforts to a very specific kind of debt to avoid entanglement with the banks. Hopefully some of the other elements of OWS won't try to draw this group into anything having to do with student loans or mortgages until some of the thornier legal issues are resolved.

[Benvolio]

Are the people running the show doing it for free? Not for long. Soon they will see an opportunity for nice livings for themselves, plus bonuses. Health care, pension plan. Will they qualify as a charity with the IRS? Doubtful. Will they bail out friends and relatives first--of course. Then, the employees administering the fund will unionize. Lawsuits for discrimination, sexual harassment. They can save expenses if they outsource to India and avoid all the hassles of employment in the US.

[Harke the Boeotarch]

Are the people running the show doing it for free? Not for long. Soon they will see an opportunity for nice livings for themselves, plus bonuses. Health care, pension plan.

Not everyone is like that, not even in the US.

[rareboy]

^ Benvolio is only telling you what he would do if he were in their place.

[EastMed]

It's an excellent initative which challenges the legitimacy of financial systems and instutions favouring the rich and powerful.
Thanks for posting it.

Strike Debt is trying to build what it calls “a growing collective resistance to the debt system” — and this exercise is part of what you might consider a broad politically-motivated deleveraging, a way of taking power back from the creditor classes (a/k/a the banks).

http://blogs.reuters.com/felix-salmo...lling-jubilee/

[BostonPirate]

For all the naysayers of the Occupy Wall Street movement, Occupy is now involved with an activity that has done more fiscal good in reducing debt for Americans than the Tea Party has ever done in its existence:

ROLLING JUBILEE
http://rollingjubilee.org
This perhaps is one of the most amazing charities ever. This is an off-shoot group of the Occupy movement which was an organization that I was proud to be a part of (and did some work for) during its peak.

Basically, what Rolling Jubilee does is they buy bundled debt from creditors looking to sell it for pennies to the dollar. Credit agencies do this all the time with each other to unload debt and make profits off of each other. Except Rolling Jubilee just buy its and forgives the people of their debt.

For the millions of Americans who have fallen into credit, medical, and student loan debt, Rolling Jubilee is saving Americans by the bundles. Imagine a family who gets a letter in the mail saying their creditors will no longer be hunting them and compounding their debt in interest. Or a college student who still hasn't been able to find a job but is saddled in tens of thousands of dollars in student loan debt. Or the uninsured American, a victim of the system, is now able to rest in peace knowing their surgery 5 years ago has now been made off.

This is a 100% transparent charity organization that buys off and abolishes debt. The only associated costs are the paperwork, accounting, and legal fees it takes to organize its operations. All volunteers managing the fund receive no compensation for their time.

If you donate $100, you will abolish $2,000 of someone's debt!


I hope this site inspires you to donate to such an amazing charity.

Thanks for the thread and topic!

[Corny]

tsk tsk .. CE&P lagging behind as usual

http://www.justusboys.com/forum/thre...olling-Jubilee

[edit]
and I even mentioned it here!
http://www.justusboys.com/forum/thre...89#post8475789

[JayHawk]

No we just dont adhere to your socialized threads.....

[Corny]

Communist, you mean communist. For the common man

[JayHawk]

My sincerest apologies....

[Kulindahr]

I see a couple of things they're doing wrong. One is as the article said, they're not checking to see if any of it is junk debt, and if it is, sue the bank/whoever. The other is not finding out who owes the debt; if some of it is people who can actually pay but are slacking, they could settle the debts with those folks for five cents more on the dollar than they paid. Both should result in income that could be turned to buy more debt.

I'd love to see Bill Gates drop a billion on the project, along with a legal team to sort through and pursue what I outlined above, and to set up a fund to pay any gift taxes -- after all, the government is hurting, too.

[itsmejeff]

The cheapest of all debt is that which is considered uncollectible. Debt has a statute of limitations. This is debt that is likely past that period; it still exists as debt, but there is no way to force payment legally. The contract cannot be enforced any longer.

Banks and others usually do not sell off debt while there its still hope of collecting. Pennies on the dollar debt is nearly valueless. That its why it is so cheap. If there was a strong likelihood of payment, then it would not sell for 5% of value. Stop paying on a credit card. the longer you hold out, the less the bank will accept as payment for the debt.

This is a waste of money by people who have good intentions but not so much knowledge. The money would be better spent on financial classes for poor people. The potential "good"is minimal and it fails to address the causes of debt.

Things get even more difficult tax wise. I doubt those involved are tax attorneys. Debt forgiveness is considered taxable income.

[Just_Believe18]

^ Some interesting points there, Jeff. They are planning to release a report of what they've paid so it can be scrutinized more. If they can start to collect stories, it will add a lot of credence to their mission. This sounds like a really good thing that can help a lot of people.

[Kulindahr]

^ Some interesting points there, Jeff. They are planning to release a report of what they've paid so it can be scrutinized more. If they can start to collect stories, it will add a lot of credence to their mission. This sounds like a really good thing that can help a lot of people.

And if they can get some actual analysts in their corner, they should be able to buy a lot more debt for a lot less.

And I still think they should find some lawyers to pounce on institutions who sell shady loans in illegal fashion -- just think how far a half-million dollar settlement could reach!

[Stardreamer]

Reading both the articles that were offered I come to sneaking conclusion that this is in the end pointless feel-goodism. They admit themselves that the people who originally owed the debt aren't even AWARE that the the debt was paid off (they like the bank that sold it had written the debt off). They might marginally improve some folks bad credit reports but I don't even think that will be much effect since the financial habits of the debtors will not have changed.

The numbers crunched in the Naked Capitalism article shows that their efforts are not a drop in the bucket but a drop in the ocean as far as the unsecured consumer debt issue goes and points out quite correctly that even if they were to start making a dent it would only make the problem worse by inflating the costs of this useless debt.

So they essentially seem to be making a feel good gesture that will do little to actually help the people in need and opens the gates to considerable legal and financial problems down the road. Is participating in the debt market really a good way to illustrate the problems with it? Would that money be better spent on education and legislative efforts? I can't help but think the one article's analogy to slave abolition is about right, this is like going to a group of slave traders with thousands of slaves for sale buying two of them and setting them free. You haven't really done anything to stop the slave trade in fact you encouraged it. And taking the analogy further with how the debt issue works the two slaves you let free get enslaved again the next day.