CA = Tax on Economy
[ Follow Ups ] [ Post Followup ] [ Credit Forum Index ]
Posted by Truth
(68.106.21.79) on October 29, 2003 at 15:36:44:
CA Tax on the Economy In a previous post it was stated that collection agencies of “bought” debt act as a tax on the economy. It was postulated that the economy and society would be better off if you DON’T pay these agencies. This is the analysis. After your OC charges off your account and gives up on ever collecting from you, they flush the worthless paper off in an auction. Let’s say they get on average 5 cents on the dollar for this debt. In comes the bottom feeding agencies who then attempt to collect on that debt using extralegal methods that the OCs are unable to take. All manners of threats and abuse are used. On average these agencies eventually collect 20 cents on the dollar from the consumers. That means that 20 cents of the economy’s resources are taken to collect 5 cents for the OC. Micro-economically it may make sense for somebody to spend 75 dollars to collect 100, but macro-economically, this is a waste (tax) on the economy. Three quarters of the monies collected by these agencies goes to feed these agencies. It is a welfare program filled with society’s most parasitic criminal element. Would you donate to the United Way if you knew that 75 cents of every dollar went to the cost of raising the money? In this instance, the economy would be better off if the banks would simply bury the charge offs rather than selling them for 5 cents. You can do your part to help the economy by refusing to pay these collection agencies whether you actually owe the debt or not. Take whatever money you may have owed and spend that on productive products or charity programs. Collection agencies for “bought” debt are like telemarketers; they would go away if nobody paid them anything.
Follow Ups:
Post a Followup
|
