News - National
Debt brokers attempt to cash in on Illinois financial crisis
Posted: Jun 7, 2010 12:55 PM by Greg Boyce
With Illinois still not paying its
bills, a new company in the debt brokering business has seized on
an opportunity to make money off the state's financial crisis.
Georgia-based Alpharetta Industries is offering to help Illinois
organizations that are owed money. The company will arrange to sell
the debts to speculators in exchange for partial payment now. The
groups will get at least 70 percent, the buyers will get the full
sum when the state finally pays up, and the company will get a
commission.
The idea has plenty of critics who say the company is taking
advantage of human-service groups. Don Moss of United Cerebral
Palsy calls Alpharetta executives "vultures." But several
organizations have accepted, saying they need the money.
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