Credit card charges and interest rates are so high because the mugs that pay the charges are paying for all of the money that card companies lose due to fraud. It is the easiest thing in the World to get loads of credit cards delivered to your door.
Check the voters roll in a nice posh area where they pay bills. Apply for loads of cards stating that you have just moved house. The old address is credit worthy and so they issue cards to the new address. nobody ever checks!! On an odd occasion you may get a phone call and you give them the spiel of a new house hence you need credit to buy stuff. They go away happy and so do you !!!
There are dozens of similar scams. You can apply and get the post office to redirect mail for a month. They accept it on the web!!! Just push the crap mail through the other letter box and they never realise they are now in debt.
As long as the mugs keep on paying stupid interest rates the card companies couldn't care less. They win out of the fraud too, by the way. A card company can take out insurance against bad debt. The insurance cost is an allowable business expense. The insurance company pays up and your rates go up!!! Another scam is to "sell" the debt to collectors for a percentage.
You owe and default on £1,000 They sell that for £250, say. So they now have an income of £250 and a loss of £750. Business losses are allowed to be claimed in the tax year following the loss. So they have a nice build up of defaults to place against future profits.
The collector now tries to get their money. They can recover the whole £1,000 for their outlay of £250. Should they fail then that £250, now a loss, can be claimed in their accounts too. So in essence everybody can use the losses to beat the taxman. They may also 'sell ' the £250 on down the line for £75 say and the whole thing goes round again.
Taking people to Court is a waste of money. I person may just declare bankruptcy and be clear in a year or so. if they just move house the thing collapses. It is the address which is blacklisted. A person can just move and then appl again. It is a very sick joke on the honest punter which just has to be stopped.
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