Sunday, January 30, 2005
CREDITWRENCH opines on collection agencies
CREDITWRENCH CEO Bill Bauer's stated position on collection agencies is:
"every collection agency we can put out of business is a definite help to our economy"
Now while Bill Bauer may hate collection agencies and want to see them all out of business, his statement that it would help the economy defies basic economic principles.
Lenders would recover less on their loans making less money available to lend. Supply and demand dictates they would have to charge more for the money that is lent. Additionally, the full write off rather than a partial recovery means their operating costs would increase. Again, inflating the cost of loans.
CREDITWRENCH stating that putting collection agencies out of business would help our economy is false and misleading.
