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Discharged Debt Becomes Cottage Industry

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Discharged Debt Becomes Cottage Industry

Economy

Discharged Debt Becomes Cottage Industry

Discharged Debt Becomes Cottage Industry

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Credit card companies often continue to report debt to credit bureaus even after borrowers had their debt canceled in bankruptcy court, Business Week reports. This has created a whole new market: little-known companies that buy and sell that discharged debt.

Lenders might have to watch out online, but in most cases, when it comes to a loan, it's borrower beware. In our last word in business, today is night of the living debt. This is not a post-Halloween trick.

An article in Business Week Magazine says credit card companies often continue to report debt to credit bureaus even after borrowers have had their debt cancelled in bankruptcy court. This has created an entirely new market. Little known companies buy and sell discharged debt. However slight the chance of collecting there is that chance, and people will pay to get that chance. So your debt never dies. Proof that capitalism is thriving.

That's the Business News on MORNING EDITION from NPR News. I'm Steve Inskeep.

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