A people’s bailout: OWS seeks to ‘liberate debtors’

Published time: November 11, 2012 20:06
Edited time: November 12, 2012 13:28
A Occupy Wall Street activist marches with demonstrators through the financial district on the one-year anniversary of the movement in New York, September 17, 2012.(Reuters / Lucas Jackson)

Straight from the pages of Fight Club, a group of Occupy Wall Street-linked activists plans to wipe the debt slate clean. Rather than go down the path of Project Mayhem, they have another plan: buy debt for pennies on the dollar and “abolish it.”

“Banks got bailed out, we got sold out” has long been a rallying cry of the Occupy Wall Street movement following the $700-billion Emergency Economic Stabilization Act of 2008 that kept financial firms afloat after their bad bets went south.

A coalition of OWS groups under the banner of “Strike Debt” has organized the Rolling Jubilee with one goal in mind: create an economy “where our debts are to our friends, families, and communities — and not to the 1%.”

To do this, to group hopes to buy up delinquent debt, like medical and student loans, in order to forgive it.

The activists announced via their official site that they are unable to buy specific individuals' debt, and will instead “help liberate debtors through a campaign of mutual support, good will and collective refusal.”

David Rees, one of their organizers behind the project, announced a test run whereby $500 dollars allowed them to buy $14,000 in distressed debt. “We then erased that debt,” he continued.

The practice of buying up distressed debt at a fraction of the cost from creditors is a staple source of revenue for collection agencies. Once a third party buys up the debt, they are free to do with it what they want. But instead of jacking up interest rates and beginning a campaign of harassment to make good on their investment, OWS hopes to free the debtors and one day put an end to the predatory lending that has ensnared so many in the first place.

Their goal is to raise $50,000, which they hope will allow them to abolish more than $1,000,000 dollars worth of personal debt.

In order to raise publicity for the cause, “Strike Debt” has a telethon and variety show planned for Thursday which will bring together a who’s who from the world of alternative music and comedy in New York.

Apart from the debt relief action, the group also is helping to raise public awareness about predatory lending practices, debt resistance and mutual aid.

Comments (34)

mario kenny (unregistered) 13.11.2012 06:07

But this could be very tricky as the debt that is being paid off can be sold again, like it was being sold before, writing off debt is a science, a science of math, we have seen debt re secrutized a second time, in another location, and sold alongside it self,  when debt is purchased, it is not necessarily pa id off. The insurance positions and claims give the debt immortality,  how do you know if debt can be bought and forgiven?

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G. Popovich (unregistered) 13.11.2012 03:00

Preach it Fat Boy. I'm tired of all these whiners who think the government needs to save them from their overspending selves!

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Fat Mikey (unregistered) 13.11.2012 02:49

To Chris .  (mike) I didn't see anything about taxes in the article but i did mention that I pay taxes and as a small business owner in corrupt Illinois believe me its a bunch! The trd thing was a little extreme. My bad. You run a small business, like me, good for you being a small business owner. Surely it makes your skin crawl just a little when these jerks talk about not paying back Debt?. Maybe you are in a position where its a cash and carry type business. It's not for me! There is lots of slime unlike you and me who race to there post office box come government handout time so the can get food stamps and beer money. If I said its un-american to not pay taxes I must have been steaming mad.  It is un-american in my opinion not to pay your bills. There was alot of talk about student loans being forgiven... You worked your but off and paid your student debt in 4 years. GREAT. And you think that the rest of these people should be let off  free when you did what was expected of you and was the right thing to do?  The longer I look back at your words it seems that maybe you could have googled some of your points. I look fore ward to hearing more out of you. Congrats again on running your small business. Hope you never have ows people at your business who think they don't have to pay your fees.  (mastrs) Yes I was mad when I spouted off. Now I'm just tired of the whole mess.  Again "If people borrowed money and signed on the line, then pay it back"  If you chose a college major where there are currently no jobs, why is that my or your rbe's fault?  If they started canceling food stamps and taking kids away from delinquent parents there would be a whole lot of people coming up with employment somehow. Hopefully your business expands and you can hire some ows's for your operation. (67 yahoo it). I would love to be enlightened. and enjoy a good debate.

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