Debt collectors figure out how to close the circle

Like a sort of perpetual-motion machine for debt—a perpetual-debt machine, rather—Oregon debt collection agency Genesis Financial Solutions has started issuing credit cards to consumers, with the balance equal to the debt the consumer allegedly owes. As the consumer pays off the debt, of course, they generate more debt, making sure they remain “customers” for life.

While the interest rates are not terrible, this replaces a dubious debt—debt buyers and collectors can rarely even prove they own many debts, much less that the consumer owes it—with a certain one, renewing the statute of limitations and keeping the cycle of debt going.