Re:Can We Survive the Next Financial Crisis?
by beaconstudios on Monday September 10, 2018 @07:12PM
(#17955922)
of course, but my interpretation of OP's comment was that they went into a purchase with the intent of defaulting. To me, that's fraudulent - IANAL but that would seem to be legally fraud too. It's really no different from chargeback scams.
Re:Can We Survive the Next Financial Crisis?
by spacehome on Monday September 10, 2018 @10:38PM
(#17956807)
It's only fraud if you take out the loan with the intention of not repaying it. sigfubar never says when he came to the conclusion that repaying the loan is a bad idea. If it's any point after he took out the loan, it's not fraud.
They do it because, in most cases, it is not fraud - defaults are just a fact of business. Being a lender is not a ticket to free, zero-risk money.
Both parties in a lender/borrower transaction understand that there is a risk of default, as well as consequences for a default. In a secured loan, the borrower loses the secured item. In an unsecured loan, more of the risk falls to the lender (which is why unsecured loans have much higher interest rates.)