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The normal way to deal with this is to either not loan money to people that you don’t trust to pay back, or to account for the risk in interest. Lending money
by tinus_hn 6y ago
The normal way to deal with this is to either not loan money to people that you don’t trust to pay back, or to account for the risk in interest.
Lending money to people and then strangulating them when they don’t pay is the way the mob works.
- baxtr 6y agoBut is this really fair for those who pay? Selecting out high risks will benefit the majority of people with low or no risk because interest rates will be lower. Side Note: That's the key reason you can't get your Ferrari easily insured with major car insurers... It is not impossible, of course, but it isn't as easy as with usual brands.
- tinus_hn 6y agoThat’s how a credit card works, if you pay in time you don’t pay internet but if you run late you pay a ridiculously high interest. This needs to be limited, otherwise it becomes predatory, people who miss one payment are immediately sucked into an inescapable vortex of ever increasing debt, because they can’t pay the interest so the debt can only grow.
- refurb 6y ago“Strangling them”? You mean taking back the thing they aren’t paying for?
- tinus_hn 6y agoThat depends on how essential you consider that thing you’re taking back to be. You probably don’t consider them necessities. Then again, if they weren’t, why would people take out predatory loans for them? Can you live without electricity? Do you have any destiny apart from poverty without a mobile phone? It depends on the society these people are living in.
- perl4ever 6y agoIt's been a thing in the so-called first world for a while to make loans on cars that can be remotely disabled for non-payment.
- refurb 6y agoSo you’re saying someone should be able to get a loan for a phone, stop paying and then keep it because it’s “essential”? I mean there was a time when they didn’t have a phone.
- tinus_hn 6y agoNo, if a phone is essential you shouldn’t make people get a loan for it. If you consider a phone to be non essential than enticing people to get one using a predatory loan scheme is bad. And if it is essential then you should make sure they can get and keep one, and predatory loans are not the solution for that.
- statstutor 6y agoElectricity in the UK is provided in two ways - some pay at the end of the month on a contract basis, some pay via a pre-payment meter (on different terms - more expensive and more dependent on regular servicing). Wealthy people typically get cheaper utilities with less hassle. People renting somewhere with a prepay meter don't have the same level of access (whether they make reliable payments, or not). We might agree that it is reasonable to differentiate when it comes to private loans, but when it comes to utilities, this is pure discrimination.
- valuearb 6y agoTurning off your cell phone is strangulation now? Counterpoint: this is a brilliant way to reduce risks and offer honest customers lower rates.