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How does that interact with understanding that some businesses carry a lot more risk than others?
by myrryr 7y ago
How does that interact with understanding that some businesses carry a lot more risk than others?
- hamandcheese 7y agoThose business should price the risk into their fees?
- myrryr 7y agoI agree, but would that be considered discrimination?
- ineedasername 7y agoIn this case, the business with the risk is the bank lending the money through the credit card. And credit card purchases made just before declaring bankruptcy are highly scrutinized as potential fraud. Paying the lawyer with additional debt you're attempting to get discharged would seem to fall under that category. As a result, in practice, you won't find bankruptcy lawyers accepting CC payments from their clients. If they accept CC payments, it must be from someone other than the client. (family, friend, etc.) Given this, there is no reason to price the risk (a customer paying their lawyer with debt that will be discharged) into their pricing: it is already prohibited by statute.
- ineedasername 7y agoI don't view any of this as having to do with business risk, as the article dealt primarily with who had standing to sue, not about the actual practices/policies of Square. However, as a matter of Bankruptcy law, purchases made with a credit card with no intent to pay back are not dischargeable by bankruptcy courts. Sometimes any purchases made just prior to bankruptcy, and especially any abnormally large purchases are not considered dischargeable, and in some cases are presumptive fraud. I think this is where the prohibition against credit card use for bankruptcy lawyers comes from. [0] [0] https://www.law.cornell.edu/uscode/text/11/523 https://www.law.cornell.edu/uscode/text/11/523