cents and gifting 95 is pure fraud on the taxpayers. Alea, the market is what the banks can get for it, which is 5%. If they could really sell it for more, wouldn't they? You don't have any problem with the greed of the banks, but to help out the poor, that's just evil, correct? creditors are owed. they sell account to those in business of collection. those collectors have expense and overhead. they hope to collect more than purchase price and expense of collection. those accounts they don't resolve they in turn sell to one dealing with even worse debt. this scheme does not hurt bank creditor-seller. it just competes with for profit buyers of claims. it helps debtors as they are let off the hook -- albeit they do have income for forgiveness of debt. you could help them more by filing a satisfaction of the debt on the record.this could help their credit. I think you'd be surprised Felix... when debt is cancelled the person who cancels it is supposed to issue a 1099-C to the debtor, who then has to file taxes on it, same as if they'd been written a check. The Jubilee folks have a loss and no tax liability, but the person whose debt is cancelled ends up with a taxable income. IANAL, so I don't know what consequences are if the Jubilee guys don't issue a 1099, but presumably similar to an employer not issuing them -- major hassles. I've seen many