Re: debt collectors

Posted by June (24.247.148.17) on April 08, 2003 at 20:31:07:

In Reply to: Re: debt collectors posted by Why ChAT on April 08, 2003 at 16:33:47:

Creditors assume certain risks when they extend credit. During the 70's & 80's, credit was handed out in unsolicited mailings. Many many persons received cc's who really did not have the expertise and personal discipline to handle them. Should we now punish the "child" who ate the candy we "gave" them knowing full well it was beyond their means to resist? Credit card companies charge exorbitant interest rates in part to compensate for the higher risk of extending unsecured credit. Coupled with the ability to write off the loss of a bad debt from federal and state taxes, the profitability of credit extenders seems assured. Since the actual "loss" to the creditor is somewhat less than the actual debt due to the write off, why shouldn't the amount for which collection attempts are being made be reduced accordingly as an incentive to pay the balance? Lastly, if the Collection Agency industry were to fold completely today, would the credit industry survive? I think so.

June

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