When Paola Gonzalez received a phone call from RIP Medical Debt, she was certain what she heard was a mistake. A prank, maybe. The caller said a $950 hospital bill had been paid for in full: It would not affect her credit and she wouldn't have to worry about it again. "They wanted to pay a bill for me," she said. "I was just speechless."
The 24-year-old student from Roselle Park, New Jersey, has lupus, a chronic autoimmune disease that in 2011 put her in and out of hospitals for a year. Even with insurance she faces a barrage of medical bills that often get pushed aside. "I can't always work," Gonzalez said. "I'll be fine today and sick tomorrow. It's really amazing that people would help out like this."
Gonzalez is one of many people who have had a debt paid by RIP Medical Debt, a nonprofit founded by two former debt collectors, Jerry Ashton and Craig Antico, that buys debt on the open market and then abolishes it, no strings attached. In the year since RIP Medical Debt started, the group has abolished just under $400,000, according to Antico. On July 4, it launched a year-long campaign to raise $177,600 in donations, which it will use to abolish $17.6 million of other people's debt.
Millions of people are, in Ashton's words, "sitting at the kitchen table and you have to decide, 'Do I buy medication today or do I pay the water bill or do I pay the debt collector?'... We decided we should take the debt collector out of the equation."