Good infographic below from Frugal Dad on the aggressive and sometimes unethical and illegal debt collection practices of lenders. This gives some good background on the difference between persistence (legal) and harassment (illegal).
I’m a huge believer in taking on NO debt if at all possible, but if you’re going to do it, you do have a moral and ethical responsibility to do everything possible to pay it back.
But that’s only one side of the coin… The other is unscrupulous lenders who knowingly push debt on those who clearly can’t afford it, and then go crying to the government for a bailout when their Ponzi schemes collapse. That’s antithetical to any notion of a “free market” and it’s why the world is so outraged at Wall Street.
Borrowing AND lending involve risk, and if Wall Street was stupid enough to make bad lending decisions, they should have been allowed to fail.
As the infographic makes clear, today’s debt collection methods involve lying, stalking, threatening and even harassing families of deceased debtors to collect. But when even that fails, lenders have a fail-safe backstop… the taxpayer.
The bottom line is that the ethical burden of making good on our debts only applies to half of those involved in a transaction — individual borrowers. Lenders (as has been proven over and over again) have no responsibility, no risk, and yes, no ethics.