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
Certain loans involve collateral where they can seize your property if you don’t pay (auto and home loans tend to be like this as well as some commercial loans).
Even for loans without collateral, you can be taken to court and your assets seized if you don’t pay.
However, the cost of doing so tends to prohibitive, so most of the time lenders will simply report to the credit bureaus your failure to pay. This hurts your credit rating, which can impact your ability to gain future loans, employment and rent housing.
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