This was originally a google groups discussion, but is now on hacker news: Debt Strike and Debt Forgiveness - Debt Strike /Kick-Stopper (groups.google.com)
I'll just quote the most relevant part:
Sorry everyone, I took down the original link because I wasn't sure everyone in our conversation about debt forgiveness/debt strike would feel comfortable having a wider audience read it. But I've added all the relevant info about our project below. We'll be launching it soon and could use your help spreading the word when we do. I also welcome any feedback/criticism that you might have. Thanks. -------------
The banks got bailed out and we got sold out. It’s time for a bailout of the 99% by the 99% for the 99%. Help us raise $5,000 to launch a large-scale debt forgiveness project.
Banks sell defaulted charged-off debt as a commodity for pennies on the dollar. The banks make so much money charging interest and imposing fees that they don’t mind selling some debts to collectors at a significant loss provided that the debtors are financially ruined in the process. So here's our plan: We're going to raise as much money as possible, buy as much debt as possible, and then forgive the debt outright. If we can raise $5,000 we will be able to launch the project by forgiving $100,000-$500,000 worth of personal debt. This project is 100% legal.
The 1% gets rich by keeping millions of hardworking people poor and in debt. Over three quarters of all Americans are in debt and one out of every seven is currently being pursued by a debt collector. Debt Fairy liberates people from some of their debt by forgiving it outright.
But the real impact will come through non-cooperation with our own oppression. Nonviolent direct action searches for the point of contact between our lives and the unjust systems which exploit us. One point of contact can be found every month when we dutifully pay the banks money they didn’t earn. The 1% could not exploit us without our cooperation. If millions of us organized to refuse to pay our debts we could bring this unjust system to a grinding halt and demand real changes. Go to the Occupy Student Debt Campaign and sign the Debtor’s Pledge of Refusal.
Other Ways You Can Help
Spread the word! Educate yourself about how debt works and how we can liberate ourselves from debt by fighting back. Attend a GA at your local occupation and join a working group.
Q. Is this legal? A. Yes. After the savings and loan crisis in the 1980’s the government made it legal to buy and sell debt as a commodity. As the legal owner of this debt the Debt Fairy has the legal power to forgive this debt.
Q. Can you forgive my debt? A. Unfortunately there is no way to seek out a specific person and buy their debt. Before purchasing the debt there is very limited information as to whose debt it is. The Debt Fairy is a playful creature and liberates people out of the blue.
Q. Can the Debt Fairy forgive student debt? A. No. The government guarantees student loans made by private lenders like Sallie Mae which means that these private lenders will always make a profit no matter what and have no incentive to lend responsibly or to sell these debts at a discounted rate. Sometimes a private lender will lend directly to a student in excess of the amount that the government will guarantee. This usually happens under highly predatory circumstances like for-profit scam schools such as the University of Phoenix. It is somewhat hard to find, but this highly predatory kind of student loan can be purchased and forgiven.
However, we are looking in to other ways we might be able to aquire and forgive student loans. We'll keep you posted.
Q. But shouldn’t we all pay our debts? Isn’t it unfair to forgive some people’s debt? A. The 1% can always get their debts forgiven, even as they rewrite the laws to make it nearly impossible for the 99% to get out from under their debt. The 1% profits without working by keeping the rest of us in debt. The undemocratic system the 1% have built is unfair and unjust. The Debt Fairy is a small intervention to set people free from from their debt and give them a fresh start. Debt refusal or a debt strike is a way to directly confront the whole unjust system and replace it with a just system.
Q. Who/what is the Debt Fairy?
A. The Debt Fairy is a mysterious, anonymous, magical creature who playfully liberates people from their debt.