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Published Articles by David Balovich

Title: A Day Without Debtors
Published in: Creditworthy News
Date: 6/16/04
We recently attended a film entitled “A Day Without A Mexican”. It was titled a “mockumentary” and the story took place in California where one-third of the population is of Latino heritage. Early in the film it is established that the majority of citizens do not know the difference between the seventy, (70) plus Latino nationalities that reside within U.S. borders. All Latinos are considered to be Mexican and in many cases “illegal”.

The story depicts what happens when a “fog” surrounds the borders of California and all communication beyond California’s borders is cut off. In addition all residents of Latino heritage disappear. Within hours the industries and services made up of agriculture (harvesting & distribution), construction, hospitality (hotels, restaurants, fast food), public services (waste management) and public transportation are all adversely affected. On a national level the employees of the U.S. Border Patrol and Immigration & Naturalization Service (INS) have nothing to do and are faced with the possibility of losing their jobs. In addition the California economy plummeted with the loss of daily revenue provided by one-third of its citizens who no longer exist.

In the end the “Mexicans” reappear and all of California rejoices upon their return including the Border Patrol and INS agents much to the bewilderment of the “Mexicans” who before their “disappearance” had been abused and maligned on a daily basis.


Well, as we contemplated this “mockumentary” we began to think about the role of the credit department within the organization. Credit has many functions; identification of creditworthy customers, monitoring marginal accounts, handling deductions and short payments, processing legal notices, updating credit files, and the list goes on.


What if all of our customers:

  1. Completed their applications for credit,
  2. Provided tax certificates and financial statements without prodding,
  3. Never disputed prices or terms,
  4. Never took deductions other than discount for prompt payment and
  5. Always paid within terms and/or the discount period?

What would credit professionals do without debtors? Would they be needed by the organizations? Not only credit professionals but also what would become of collection agencies, deduction management firms, bankruptcy courts and oh yes, most importantly credit consultants?

Like the two-thirds of the citizens of California depicted in the film we often criticize and complain about a segment of our world without recognizing what the ramifications would be without them. The fact is we are all dependent on each other for our wants and needs.

There is an old saying about being careful what we wish for because the wish may come true. The next time we pick up the phone to call the delinquent customer for payment, or write the unauthorized deduction notice, we should take a moment to reflect about what we are doing and then don’t forget to thank them.

What would we be doing if there were no one to place a collection call too or call because they did not complete the credit application?

I wish you well.  

This information is provided as information only and not legal advice. Legal advice should be obtained from a competent, licensed attorney, in good standing with the state bar association.

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