> If the govt. banned credit cards, you will then ask why poor people can't get credit.
Or alternatively, poor people would get their credit more from alternative providers. Like payday loans or pawnshops, or even loan sharks.
Those alternative sources of credit have exactly the same problem with shady collectors. The article alludes to that, but decides to focus on credit card debt.
The article also implies that perhaps regulation that encourages banks to offload credit card debt from their balance sheet might be to blame. If you instead had regulations that encouraged banks to keep credit cards on their balance sheets, and/or to make it so that debt collection agencies have to keep mentioning the co-branded sponsors (like Apple and Amazon etc), then collectors might have more of an incentive to be less shady to protect the reputation of established brands.
Reputation of established brands is very, very valuable, and does not require a lot of paperwork or bureaucracy to self-enforce. So that might actually be a better fix than enshrining yet more 'customer rights' in law, that only the literate classes who know how to navigate bureaucracy can actually enjoy.
Or alternatively, poor people would get their credit more from alternative providers. Like payday loans or pawnshops, or even loan sharks.
Those alternative sources of credit have exactly the same problem with shady collectors. The article alludes to that, but decides to focus on credit card debt.
The article also implies that perhaps regulation that encourages banks to offload credit card debt from their balance sheet might be to blame. If you instead had regulations that encouraged banks to keep credit cards on their balance sheets, and/or to make it so that debt collection agencies have to keep mentioning the co-branded sponsors (like Apple and Amazon etc), then collectors might have more of an incentive to be less shady to protect the reputation of established brands.
Reputation of established brands is very, very valuable, and does not require a lot of paperwork or bureaucracy to self-enforce. So that might actually be a better fix than enshrining yet more 'customer rights' in law, that only the literate classes who know how to navigate bureaucracy can actually enjoy.