Re:John Oliver buys $15M in debt and forgives all of it on '...
by stanmancan on Monday June 06, 2016 @12:34PM
(#11848038)
Going through the details isn't worth it to the buyers since its for such a small amount.
Lets pretend you have a false debt on one of these lists. It shows up on your credit report. You try to get a mortgage, but can't until this debt is settled. So now you either have to essentially pay their ransom to have it closed quickly, or proceed through length processes to have it forgiven if they don't have the appropriate documentation to prove it. Neither situation is ideal, and only exists because "going through the details isn't worth it".
Maybe credit is too cheap if we have to follow shoddy practices to afford it. Maybe credit shouldn't be accessible in such large quantities to the masses as it is today. Either way, it's probably too late to change that now.
> No contracts, no history, no anything, just, this person now owe's you $X.
Going through the details isn't worth it to the buyers since its for such a small amount. They give them names, numbers and amounts to their phone bank and they see what they can get.
Killing off the secondary market would decrease the amount and cost of accessible credit to borrowers with bad or no credit history. It may or may not be right, but there is definitely a trade-off.