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Credit card companies carry out some due diligence as to the borrower's ability to pay whereas a lot of these BNPL providers do none at all. I earn over 100k y
by dazc 4y ago
Credit card companies carry out some due diligence as to the borrower's ability to pay whereas a lot of these BNPL providers do none at all.
I earn over 100k yet my credit card limit is 4k. Someone with no earnings at all can, in theory, run up this amount of debt with no problem at all via BNPL.
In response to the original question - if your competitors are all offering it then is it socially responsible for you to suffer a financial loss as a consequence?
- hirundo 4y agoWhether someone benefits or not from such credit is almost entirely due to their own behavior. As the seller, I think you have an ethical obligation to deal with them openly and honestly and to go out of your way not to mislead them. But it isn't your responsibility to paternalize them if they appear to be adults. Most products can be abused, and this is one. But it isn't necessary to remove hammers from the market because some customers will build unsafe houses with them.
- kolanos 4y ago> Credit card companies carry out some due diligence as to the borrower's ability to pay whereas a lot of these BNPL providers do none at all. This is not true. BNPLs perform underwriting just like any other lender.
- dazc 4y agoMaybe at some level I'm not aware of? I was of the understanding that just about anyone could get these deals.
- 7speter 4y agoStrange, there are people with 1/3 your income that have a credit lint 5x bigger than that… wonder what gives
- dazc 4y agoSome companies allow you to request a higher limit, I suppose one could do that multiple times? Some firms are obviously less responsible than others.