Why don't collection agencies give away prizes for paying off debt?

Discussion in 'Politics, Religion, Social Issues' started by Hummer, Mar 19, 2013.

  1. Hummer macrumors 65816

    Hummer

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    Queens, New York NY-5
    #1
    I realize that collection agencies just want to get their clients paid and make a profit as well. Most agencies tack on an exorbitant fee, so why don't they just build in the cost of a desired item as a prize, and give some people incentive to pay off their debt which is usually a forgone intangible expense to most? They otherwise have no real benefit of paying off debt aside from stopping the calls or preventing a levy, if that's something that even concerns them.
     
  2. 7thson macrumors 6502a

    7thson

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    Six Rivers, CA
    #3
    Debt collector: "... and if you sign up for Auto Pay, we'll enter your name in a drawing for a $50 Walmart gift certificate!"
    Debtor: "Well that changes everything! Sign me up!"

    Honestly, isn't rebuilding your credit reward enough?
     
  3. Hummer thread starter macrumors 65816

    Hummer

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    #4
    Once you have a collection agency reporting your delinquent account, paying off that debt doesn't exactly count as "rebuilding." That mark stays there for years. After 120 days of an account being in default, the damage is done, and your only incentive is avoiding levies and collection calls. Why not incentivize the debt repayment process, while also providing consumers with a method of acquiring the material goods they want?
     
  4. sim667 macrumors 65816

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    Dec 7, 2010
    #5
    Take loan out

    Dont pay loan back as per agreement

    Get rewarded for paying loan back late.

    Genius.
     
  5. samiwas Suspended

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    Aug 26, 2006
    Location:
    Atlanta, GA
    #6
    Once you have a debt, the only thing you try to do is avoid the repayment of it, and when you do, you should get a prize?

    And sorry...at that point, you are not a "consumer". You were a consumer who didn't pay for what you got, now you want to be given more stuff.

    Seriously.
     
  6. eric/ Guest

    eric/

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    Ohio, United States
    #7
    Well it's not really a reward, I mean, you're being slammed with fees and interest.
     
  7. ugahairydawgs macrumors 68020

    ugahairydawgs

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    Jun 10, 2010
    #8
    I think getting out of debt is the reward. Rebuilding your credit just means you keep adding more debt back to the pile.
     
  8. Macky-Mac macrumors 68030

    Macky-Mac

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    May 18, 2004
    #9
    how do people find themselves dealing with debt collection? It seems to me that for the most part they simply don't have the money to pay so even if a prize were offered, they still wouldn't have the money to pay
     
  9. 7thson macrumors 6502a

    7thson

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    #10
    My reasoning is that if one is in the unenviable situation of having to deal with a debt collection agency then one of the incentives to actually pay off the debt is to begin the process of repairing your credit. Unless of course the debt is so large that bankruptcy is the better option. Some will pay because they know it's the right thing to do regardless, but many will shirk it off, hoping it goes away. Many people abuse credit to their own detriment, but it's principal advantage is that it communicates to businesses that this person can be trusted.
     
  10. sim667 macrumors 65816

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    Dec 7, 2010
    #11
    Why bother rewarding them then?

    Dont buy something if you cant afford to pay for it should be the message.

    And banks and finance companies shouldn't be lending to people who cant afford it, its irresponsible, sub prime mortgage lending is whats caused recession in a great many places around the world at the moment.
     
  11. mcrain macrumors 68000

    mcrain

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    Illinois
    #12
    Corporations are able to, and often times see it as a wise business decision to walk away from bad debts. I think individuals should rethink their views on debt and credit.
     
  12. iMikeT macrumors 68020

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    Jul 8, 2006
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    California
    #13

    Right? Shouldn't customers have the same option when considering bank's shady business practices regarding debts?



    Not just credit and debt but the idea of money and exchange in general.
     

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