Originally Posted by bmulls
They aren't doing anything. These debt collectors buy up debt that companies have already written off and reported to the credit agencies. Then they harass you all day every day to try to get you to pay. These people are doing the same thing except "forgiving" the loans instead. The people still defaulted on their loans and their credit ratings are still totally fcked up.
Their credit rating may suck but this is definitely helpful for the people who had their loans forgiven by people doing this. Doing this for student loans could be especially helpful since they don't get erased in bankruptcy proceedings the way that other debts do.