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The original was posted on /r/maliciouscompliance by /u/APuticulahInduhvidul on 2024-05-02 15:59:32.
Before I start be aware this happened in Australia many years ago. The rules may be different where you live, especially in the US and for larger debts.
So anyway, I was in my early 20's working basically my first real job and I was offered an AMEX. Later, unemployed, I maxed it out to $2K pretty quickly.
Since the interest was now a big chunk of the money I was getting from social security I often missed payments and when I did pay it barely changed the balance. Eventually a debt collection service got involved and hassled me for money almost daily.
I was talking to a friend who worked for a loan company and he told me under finance laws you are legally paying a debt as long as you are making regular payments of a minimum amount - which at the time was about $5/week.
So I setup a recurring direct debit of $5 and told the collection agency in writing that was the maximum I could afford (it wasn't).
They made threats but I stuck to my guns. Sure enough, after a few weeks of this, they sent me a letter cancelling the entire debt with no default recorded. It's not a default if they terminate the debt, only if you stop paying.
Obviously it was costing them more in debt collection and management fees than I was giving them and at the rate I was paying it would have gone on for years.
Protip: I have a vague memory of being advised to play this one carefully. I think if you're too blatant about being malicious they can get a small claims court to rule you in breach anyway and/or force you to pay. The trick is keeping up the act - and being genuinely poor doesn't hurt either.