Congregation applauds as Eagle Rock church says it will pay off $5M in medical debt

EAGLE ROCK, LOS ANGELES (KABC) -- As a huge Christmas gift this year, a local church paid off over $5 million in medical debt owed by more than 5,000 local residents.

A new video is showing the moment when the congregation was told how this year's special offering was spent. Members break out in applause as the gift is announced.

The members of an Eagle Rock church learn of a plan to buy off $5 million in medical debt of local residents by paying only a penny on the dollar.

Christian Assembly Church in Eagle Rock paid about $50,000 to Rest In Peace or RIP Medical Debt, a national nonprofit agency that bundles unpaid medical debt.

The church was able to purchase the debt for only a penny on the dollar, wiping out $5.3 million in debt for people in 28 local communities.

Notification letters are being sent out to the recipients stating there are no strings attached.