I understand that the IRS makes sure you play taxes, but what about loans? Like can’t I just get a movie from a redbox and never return it since i’d only have to pay when I returned it?
In: Economics
when you took out that loan you opted into a contract with the bank that issued it under the promise that you will eventually pay under the terms set .
if you decide to not pay you breached this contract and they are in their right to execute the measures that contract enables: often this is taking the collateral that was agreed(an asset or set of assets you placed as the guarantee that you’ll pay) and if that is not possible they have a case to take you into court to seize whatever other assets are allowed in order to settle the debt in full. if for w/e reason that is not possible(ie: nothnig to seize) the entity will have ot report the loss to a credit bureau and this will impact your record/credit Score whichwill inhibit your ability to get further Loans/credit.
on smaller scale stuff like rentals the item itself is the collateral that if failed on the loaner can charge you to replace it and failing that they can refuse service.
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