An Accounts Receivable is an accounting term utilized in commerce daily. It is universally accepted in the business world.
The concept is simple. A client - or borrower, in this case - owes money to a company (in this case, a bank). The bank marks this down in their
books as an asset. When the money is fully collected, it no longer stays an Accounts Receivable, but instead, is now cold hard cash. Cash, too, is
This is all standard, basic accounting. Anyone familiar with basic accounting can feel free to verify or explain further. Virtually all businesses -
aside from some cash businesses - have some form of Accounts Receivables.
Accounts Receivables - and accounting in general - are not a federal crimes. They are standard operating procedures for businesses large and small.
What is a federal crime - universally accepted I might add - is purchasing goods and services and not paying. That is a crime. And a serious one at
If this attorney had walked out of a restaurant without paying, I am quite certain he would be arrested. Essentially, by stiffing his credit card
company, he has done just that. Only he is trying to legitimize his fraud by now blaming this debt on Bank of America. Bank of America didn't eat
at Ruth Chris Steakhouse.
(I can hear it now. "Mr. Attorney, would you please provide us with a list of the actual goods and services that you actually purchased without
paying for? Let's see.. You went to the strip club, the steak house for dinner, the ball game, and goodness knows what else. Oh, these are all
legit "business expenses"? Oh, okay.")
The basic function of the credit card company is to facilitate the ease and convenience of a cash transaction. Fast, simple, and typically no
interest if you pay the principal in full at month end.
Bank of America has fulfilled their obligation - They paid the restaurants, product vendors, etc. on the attorney's behalf, with the contractual
agreement that the attorney would pay the debt back in a timely manner.
The attorney has now defaulted on his obligation to repay. He stiffed his creditor.
Worse yet, his deteriorating credit condition has forced Bank of America to increase his risk profile, and hence, increase his interest rate.
Businesses - all businesses - expect higher rates of return on speculative, risky investments.
Obviously, this attorney has done something - we don't know what - to increase his risk profile and make the bank wary of lending money to this
Credit cards, like any other high interest debt vehicle, is a sketchy proposition for the borrower. Agreed. Too many borrowers get in over their
It is also very, very risky for the bank, however, as they are taking a huge risk by extending cash with no collateral.
Most borrowers would be best advised to pay cash.
Somehow, however, our attorney friend strikes me as being pretty sophisticated. I view this news article as a cheapshot publicity stunt for a lawyer
that wants attention. What better way to win more clients than making news with a national story like this?
Regardless, how you can defend a deadbeat slimy attorney that racked up a bunch of credit card debt and now whines about having to pay it back is
The government has committed the crime of identity theft when you were born