3 ms·
Along with all of the obvious badness, this simply seems like a terrible business model. It's a gun with one bullet. Ultimately the goal of collections, is to
by JackFr 6y ago
Along with all of the obvious badness, this simply seems like a terrible business model. It's a gun with one bullet.
Ultimately the goal of collections, is to collect the money.
After you've shot your wad, why would I ever pay you back?
After 2-3 stories like this, why would anyone ever borrow? One of the hardest things with consumer credit is customer acquisition, and as OKash gains this reputation, they will only attract the most desperate, least likely to ever repay customers.
- crowf 6y agoI guess you would be surprised at the amount of people who borrow from people with an actual gun. The short explanation is that some people are really desperate for money right now.
- huac 6y agoI would expect the opposite to be true; if you are known to offer good rates but with onerous consequences, then your counterparties should self-select to be those who are likely to repay. Lower rates are simply your CAC.
- BoorishBears 6y agoExcept right in the article we see that people realize the system is easily gamed such that the consequences are trivial, causing the opposite effect. Not to mention the proof in the pudding of their credit losses...