Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.2 9/5/84; site ssc-vax.UUCP Path: utzoo!watmath!clyde!bonnie!akgua!whuxlm!whuxl!houxm!vax135!cornell!uw-beaver!ssc-vax!eder From: eder@ssc-vax.UUCP (Dani Eder) Newsgroups: net.politics Subject: Re: Collecting debts & Libertarianism Message-ID: <293@ssc-vax.UUCP> Date: Fri, 21-Dec-84 16:56:11 EST Article-I.D.: ssc-vax.293 Posted: Fri Dec 21 16:56:11 1984 Date-Received: Sun, 23-Dec-84 01:08:56 EST References: <3160@alice.UUCP> <29200175@uiucdcs.UUCP> <168@mhuxr.UUCP> Organization: Boeing Aerospace Co., Seattle, WA Lines: 30 > Suppose I owe you $1,000 and refuse to pay. You decide to use > force to collect your debt, so you send your police to my house to > force me to pay up. They are met by a squad of MY police who > say that they do not recognize the legitimacy of your claim. > > Result: gang warfare. It might be instructive to see what happens today: I owe you (you being a local business, like a furniture store) some money and refuse to pay. After deciding it is a bad debt, you can turn it over to a collection agency. They will send letters and telephone and generally pester me until I either pay up or they too decide it is a bad debt. You now report me to a credit reporting firm, who lists me as a bad credit risk. I now find it very difficult to borrow money from anyone. If they are willing to lend to me, it will be at much higher rates, or they will demand something of value as security (like pawn shops do). In any case the cost of credit for me goes way up. There is no need for force, and no need for government intervention. In fact, as has happened to many people, you can be turned down for a loan by having an insufficient credit record. You could be a perfect angel, but until you prove youself reliable to the lender, you won't get that loan in the first place. Now, if you lent me the money without checking my credit references, and without requireing security for the loan, you took an awfully big risk. If I turn out to be a bad borrower, hiring thugs is not an appropriate response. Learning to be more cautious in lending is. Dani Eder / Boeing Aerospace Company / uw-beaver!ssc-vax!eder