4 ms·

How can we cooperate to get rid of them?

sokoloff 4y ago
Starve them of their income stream by committing to never take credit, saving and paying cash ahead of time for every purchase? Get everyone else to agree to do the same. Demand for credit scoring will plummet (and with it, the income stream to the scoring agencies). Open a lending institution that will lend money to anyone with no credit checking? Hope that you don’t get adverse selected out of business, but if you don’t and can compete without it, demand for credit scoring will plummet. Or petition your representatives to make this particular type of service illegal.
- RHSeeger 4y ago
  > Open a lending institution that will lend money to anyone with no credit checking? Hope that you don’t get adverse selected out of business, but if you don’t and can compete without it, demand for credit scoring will plummet. This seems unlikely to succeed. You'd wind up having to give the same rates to everyone, because you have no real way to assess risk individually. As such, you wouldn't be able to compete on rates for people with good credit.
- throw8383833jj 4y ago
  And, also need to get rid of all regulations that prevent shopkeepers from charging credit card fees (or discounts for cash buyers). If you're paying for everything with cash/debit, you're paying those credit card fees unless merchants can charge different prices.
  - sokoloff 4y ago
    In the US, cash discounts have been explicitly allowed since around 2010 (via the Durbin amendment to the Dodd-Frank law). Merchant agreements were updated to reflect these possibilities. (Visa's is under 1.5.4.14 Discount Offer – US Region and US Territories, 5.6.2.1 Convenience Fees – AP, CEMEA, and US Regions, 1.5.5.2 Surcharges [and possibly others].) Accepting, handling, counting, accounting for, and securing cash (against insider and outsider threats) is not without cost either.
kome 4y ago
changing the legislation and the credit market, copying (dunno) the french or italian system and regulation. German system is pretty bad, but not as bad as in the US.
ProfXponent 4y ago
jimmaswell 4y ago
I don't want to. Any system will have mistakes (and there are legal remedies for this particular system already), but for the vast, vast majority of people, their score is a fair reflection of whether you should lend to them. I've been responsible with credit my whole life, never had a bad mark appear on my report, and consequently never been denied an application.

Starve them of their income stream by committing to never take credit, saving and paying cash ahead of time for every purchase? Get everyone else to agree to do the same. Demand for credit scoring will plummet (and with it, the income stream to the scoring agencies). Open a lending institution that will lend money to anyone with no credit checking? Hope that you don’t get adverse selected out of business, but if you don’t and can compete without it, demand for credit scoring will plummet. Or petition your representatives to make this particular type of service illegal.

RHSeeger 4y ago
> Open a lending institution that will lend money to anyone with no credit checking? Hope that you don’t get adverse selected out of business, but if you don’t and can compete without it, demand for credit scoring will plummet. This seems unlikely to succeed. You'd wind up having to give the same rates to everyone, because you have no real way to assess risk individually. As such, you wouldn't be able to compete on rates for people with good credit.
throw8383833jj 4y ago
And, also need to get rid of all regulations that prevent shopkeepers from charging credit card fees (or discounts for cash buyers). If you're paying for everything with cash/debit, you're paying those credit card fees unless merchants can charge different prices.
- sokoloff 4y ago
  In the US, cash discounts have been explicitly allowed since around 2010 (via the Durbin amendment to the Dodd-Frank law). Merchant agreements were updated to reflect these possibilities. (Visa's is under 1.5.4.14 Discount Offer – US Region and US Territories, 5.6.2.1 Convenience Fees – AP, CEMEA, and US Regions, 1.5.5.2 Surcharges [and possibly others].) Accepting, handling, counting, accounting for, and securing cash (against insider and outsider threats) is not without cost either.

kome 4y ago

changing the legislation and the credit market, copying (dunno) the french or italian system and regulation. German system is pretty bad, but not as bad as in the US.

ProfXponent 4y ago

jimmaswell 4y ago

I don't want to. Any system will have mistakes (and there are legal remedies for this particular system already), but for the vast, vast majority of people, their score is a fair reflection of whether you should lend to them. I've been responsible with credit my whole life, never had a bad mark appear on my report, and consequently never been denied an application.