Shaming practices work on debtors
About a year ago, Clark talked about a new collection tactic used in South America to try and collect bad debts. Instead of harassing phone calls, some South American countries use embarrassment and shame to get people to pay. Now these “shame collectors” have spread to Australia. They travel around in the “Shame Mobile,” which has blinking lights and noise. And, although illegal in the United States, it’s been very successful as a collection tactic in other countries. People in these countries are apparently horrified by the idea that others will know about their bad debt. Shaming works. In fact, it’s gotten so big that there soon will be a reality show about this practice.
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