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There's no point of speculating - is what you're suggesting happening? You seem to be under an illusion that you cannot make money without late fees, which is
by endisneigh 3y ago
There's no point of speculating - is what you're suggesting happening?
You seem to be under an illusion that you cannot make money without late fees, which is false.
- Alupis 3y agoWrong, I'm saying late fees are not an issue for anyone who makes on-time payments. They're literally called "late fees". Heck, the late fees on my credit cards might as well be $1,000 per day or something - it doesn't matter because I make payments on time as a responsible adult. Late fees discourage irresponsibility. That is why movie rentals had late fees, libraries have late fees, utility bills have late fees, rent, mortgage, and credit cards all have late fees. It encourages you to be responsible. Therefore, reducing late fees increases irresponsibility.
- endisneigh 3y agoWhere is the empirical evidence? You keep saying the same nonsense. Let's see it. Of course you won't produce anything since it's not true to begin with.
- Alupis 3y agoLet's see... who pays late fees currently? Is it people making on-time payments? No? Oh, so by definition the people paying late fees are being financially irresponsible? So, by lowering the consequences of being financially irresponsible, we'll get less people being irresponsible? This logic does not seem sound.
- endisneigh 3y agoSo you don't have any evidence for your outrageous claims, got it.
- gotoeleven 3y ago[flagged]
- JumpCrisscross 3y ago> Where is the empirical evidence? You’re asking for evidence that late fees are fees that are charged when one is late? It’s in every cardholder agreement. You don’t get charged a late fee if you aren’t late.
- endisneigh 3y agoNo - about the connection of responsibility and late fees. You can be responsible and incur late fees. Responsibility does not imply perfection or no mistakes.
- johnny22 3y agolibraries and movie rentals had late fees because they can't rent out the same movie or book while you have it. Those require a different argument than mortage or other bills.
- selimthegrim 3y agoOne wonders whether this person thinks e-books or audiobooks should have late fees
- gruez 3y agoBut why charge late fees rather than charging you for additional rental time?
- bombcar 3y agoThat is what Redbox does now, you get one night and if you hold it longer they charge for more days, until they’ve charged you the full DVD price then you can keep it. Libraries have most gotten rid of late fees because it didn’t do anything useful; only scared people off. (They still charge replacement cost of the book if you never return it.)
- valleyer 3y agoArguably: because if customers keep movies past the due date, then it's not just that the video store can't rent it to someone else. It's also that the reputation of the video store will worsen, since other customers will find that they tend not to have good movies in stock. (In other words, it's worth more to the video store to rent a film to two customers for one day each than to one customer for two days.) So, the per-day opportunity cost to the video store goes up as each day passes. Sure, they could just charge the customer an increasing per-day overdue rate. But that's basically the same thing as having late fees anyway.
- beej71 3y agoSo if we increased late fees to $1000 per day we'd see more responsibility. Why doesn't this happen?
- Detrytus 3y agoBecause that would have a freezing effect: people would be so afraid of those late fees that they would prefer not to rent in the first place, because sometimes even with the best intentions you simply forget to return something on time. So, setting the late fees is a delicate balancing act: you want them to be a bit scary, but no too scary to potential customers.
- hgomersall 3y agoIt's nothing to do with encouraging responsibility. The credit card companies are not benevolent uncles. They're doing it because they think it will make them more money through some mechanism and they are allowed to do it.