COSTA MESA, Calif.–Experian said it is eliminating $5 million in consumer debt for 5,000 families in Louisiana through a partnership with ForgiveCo, a public benefit corporation that specializes in debt relief.
The company said in a statement the initiative is part of its ongoing efforts to “support financial literacy and assist consumers facing economic hardship.”
It added it is part of a broader initiative to aid consumers in better controlling their financial health.
According to Experian, Louisiana was chosen due to its high poverty rate—nearly 19% of the state’s population lives below the poverty line, U.S. Census Bureau data show.
‘Fresh Start’
By targeting households burdened with consumer debt, Experian aims to give recipients a fresh start while promoting financial literacy, the company said.
ForgiveCo is responsible for identifying and processing the cancellation of qualifying debts, with the objective being that relief reaches those most in need.
“Through our partner ForgiveCo, a public benefit corporation, they identify families in Louisiana with debt in collections that ForgiveCo can purchase,” Experian said in a statement to Newsweek. “The type of financial debt includes personal loans, retail cards, payday loans and other amounts owed to lenders. The beneficiary qualifier is that they are in hardship, meaning the debt is owed to a collector, and they cannot pay it…ForgiveCo selects individuals randomly. They purchase their debt out of collections, and recipients will receive letters informing them of their debt relief.”
Experian said beneficiaries will also receive a one-year Experian Premium membership, which provides access to credit monitoring, credit score tracking and financial tools aimed at improving long-term financial health.
Relief Linked to LSU Basketball Team
As part of the initiative, Experian reported it has linked additional debt relief to the performance of Louisiana State University’s (LSU) women’s basketball team during the NCAA tournament. For every LSU victory, an extra $100,000 in consumer debt will be relieved, up to a maximum of $500,000.
“Our goal with many of our campaigns is to get consumers better acquainted with Experian and to create awareness that we are more than just a credit bureau,” Experian Chief Growth Officer Kevin Everhart said in a statement. “We offer a plethora of financial tools all geared to help consumers save time and money–this includes an auto insurance comparison shopping service and subscription cancellation tool, for example – that consumers may not necessarily acquaint with our brand yet.”
