| > whoever actually takes your money be it affirm or walmart has no right to be paid if the goods aren't delivered This is 100% not true for third party creditors, at least in the US. They do have a right to be paid, regardless of the services you purchased with that credit. The only reason that you can dispute your credit card transactions is because congress passed a law specifically requiring this process: https://www.ftc.gov/legal-library/browse/statutes/fair-credi... This and similar carveouts notwithstanding, any loan you take out, you are required repay, regardless of the experience with the seller. You are correct that it is inconvenient when you obtain loans with poor conflict resolution processes. However, this does not negate your legal responsibility to pay those creditors. This is why laws like the FCBA were passed. > It would make little sense for chase to expect to be paid $500,000 for a house it turned out the seller had no right to sell or $50,000 for a car that was never delivered due to mischance. In both cases even though you had agreed to borrow that money the transaction would be unwound and not merely by you. This unwinding in case of a failure by merchant to deliver product financed is an expected part of such an interaction in part because such transactions almost always concern a great deal of money. This might surprise you, but in the US, you are still legally required to pay your loans in both of those circumstances. This is the entire purpose of products like title insurance. The bottom line is that the bank is not culpable for other people's misdeeds. In a circumstance where you spend $500,000 on a house that could not legally be sold to you, you would have to take the seller to court to recover that money so that you could pay back the loan. Or, more commonly, you'd contact your title insurance company for recovery, because your bank likely required that you bought title insurance for this exact reason. There is no level of inconvenience that makes a bank legally liable for something that someone else did wrong. |