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Random idea: If a creditor is about to sell your debt to a debt collector for pennies on the dollar, what if they were forced, by law, to give you right of firs
by _pius 13y ago
Random idea: If a creditor is about to sell your debt to a debt collector for pennies on the dollar, what if they were forced, by law, to give you right of first refusal?
While others are correct to point out that such a law would create perverse incentives, it's worth noting that debtors can already effectively buy their debt for a fraction of the price though settlements.
- Zigurd 13y ago> While others are correct to point out that such a law would create perverse incentives I'm not seeing it, and nor would anyone else who relies on good credit to, e.g. buy a car anywhere other than one of those weekly payment or your car won't start places.
- _pius 13y agoI'm not seeing it, and nor would anyone else who relies on good credit ... So, anyone who disagrees with you fails to see the value of good credit? The problem with your argument is that we're talking about people who've already harmed their own credit, probably for reasons out of their control. It turns out that people screw up their credit for all sorts of reasons, even though they presumably understand that it's harmful.
- Zigurd 13y agoThat reasoning is circular: If they are already in default, the debt is being sold at a discount, so if the debtor buys it at market value, there is no perverse incentive, and the debt holder gets market value. Incentive is only perverse if it would induce an otherwise non-defaulting debtor to default to get his debt to be sold at a discount.