Oakland County 'Undue Medical Debt' using donations to buy up medical debt for cheap

Oakland County eliminates $6M in medical debt

This system works on the principle that debt collectors would rather get something than nothing. So collectors are willing to sell debt for pennies on the dollar.  That’s where the national non-profit Undue Medical Debt comes in.

(FOX 2) - Healthcare and medical treatments can get expensive in the United States and if you can't afford to pay your bills, it can destroy you financially.

However, there is hope for people who can’t afford to pay their bills in Michigan.

Big picture view:

This system works on the principle that debt collectors would rather get something than nothing. So collectors are willing to sell debt for pennies on the dollar. 

That’s where the national non-profit Undue Medical Debt comes in.

They use donations that come from federal, state, and county money and use it to buy up medical debt for cheap. Then, instead of going after the patient who owes the money, they simply send you a letter in the mail that says your debt has been forgiven.

It’s a win-win. 

By the numbers:

The collectors are getting something, and the patient is getting out of debt. In Wayne County, as of early 2026, the program eliminated over $40 million for 70,000 residents.

In Oakland County, letters just went to 6,300 people informing them that a total of $6 million in debt has been forgiven.

"There are two criteria for debt relief; they are both income-based, either four times below the federal poverty level or if their medical debt is 5% of their household income," said VP of Communication For Undue Medical Debt Daniel Lempert. "That means it’s for people who are least able to pay these debts back. A lot of people get these letters and assume it’s too good to be true, which is completely understandable because it’s unprecedented to get news like this in this country. A lot of people see it and think it’s another bill, but we are encouraging people to open them up, and some or all of their medical debt has been erased."

What you can do:

The catch is, you can’t apply for this debt forgiveness. Undue Medical Debt has to buy your loan and then discover that you meet the criteria.

Meanwhile, the more money they get, the more action they can take. 

If you want to donate or learn more, go to unduemedicaldebt.org