After some months getting off the ground, Strike Debt, an offshoot of Occupy Wall Street, has grown fast in its efforts to alleviate poor communities from debt. The idea of tackling the issue of debt was first discussed at the encampment at Zuccotti Park, and since then has been developed by protesters including those with banking and legal backgrounds. The basic aim the campaign is to buy debt, which is split up, packaged and sold for much less than its’ worth, and forgive it.
Part of the reason for the slow start to the campaign was the consultation which had to be carried out with the tax department and legal advisors. Packaged debt is usually bought by debt collectors, after which the purchasers make every effort to see the debt repaid, with no thought of the welfare and personal circumstances of those owing money. Contrastingly, the campaign’s goal was to buy debt, but not to attempt to recover it, and through a legal loophole the purchase of debt with this intention was possible.
As a trial run, the campaign bought some of the cheapest debt, and wrote off $14,000 worth of medical loans which it had purchased for a mere $500. Organiser David Rees announced the financial viability of the action saying “as you can see from our test run, the return on investment approaches 30:1. That’s a crazy bargain!”
Since then, the movement has grown, and has been targeting communities hardest hit by the recession. With the donations of financial supporters, the movement managed to buy up and forgive further debt to the value of $500,000 by November 14th. This was the figure on the day before the campaign’s biggest fundraising effort. Read the rest of this entry »