The hassles and inconvenience this problem causes victims is sort of an unpriced externality of the credit industry. If those extending credit had to compensate the victims for their negligence, maybe they'd stop being so negligent.

And it would help if individual making the faulty decision to extend credit lost all their commissions for the week. It should be a blight on their record, with more than 5 instances causing them to lose their jobs. And CEO of the worst offending company gets a hefty fine.

Maybe that would focus the industry on solving this problem.