Landmark reforms: Costs for some, benefits for all

Once again in the AA framework, IPs will have to bear the costs initially, while the benefits will accrue to the entire economy, not just them

Shilpa had inadvertently missed the due date on her credit card payment. On realising her error, she promptly paid the overdue amount along with late charges and interest. She then called me to check if it would damage her credit score and her chances of getting a home loan that she had applied for.

This is a sea change from the attitude I have personally witnessed in the 1990s while working with a retail lender. Then, when asked to pay up, a defaulter’s typical response was: “Do what you want to.”

This change has come about due to the credit bureaus, which