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05/07/20
21:16
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Originally posted by trader_1993
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The bigger you get the more bad apples you get, especially seeing they don't conduct credit checks. If that was the case, how can banks/short term credit businesses have bad debts at all.. shouldn't they have weeded them out by now? They undertake a full credit check/application and still have bad debts.
My family works at FlexiGroup and is in the collection's team. I can assure you, there are a lot of people that have no interest in repaying money. Give
people the flexibility of no credit checks and people abuse it/the bad apples that can't get approval for a CC will use the service.
The amounts being loaned are minor anyway, so this isn't a huge factor.
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Mate it sounds like you don't understand the difference between FXL and APT nor do you see the difference in banking and BNPL. I'm not going to be the one educating you. Here is a hint. The length and value of the loans has something to do with it!
Perhaps you should ask the question, how come the Afterpay's default rate has been steady/declining over the last few years, including throughout COVID-19. Here may be a good start:
https://hotcopper.com.au/threads/objective-analysis-bnpl-bad-debt-explained.5388454/#.XwG2Yi3L1E4