How Will the Pandemic Affect Consumer Habits on Black Friday?

 Posted on November 23,2020 in Debt Collection

It is common during the holidays, especially during Black Friday, for consumers to purchase more than they can actually afford; in fact, some of these shoppers are already struggling financially but believe the holiday gives them a great opportunity to max out their credit cards and take out loans for exorbitant holiday gift-giving before they eventually file for bankruptcy. There are ways to contest such holiday bankruptcy fraud, but this year might not be the same due to the pandemic.

How COVID-19 Will Change Black Friday

Numerous retailers are struggling financially as a result of the pandemic due in large part to early stay-at-home orders for all non-essential workers and businesses as well as the economic recession itself. Fortunately, those companies with strong e-commerce skills have been able to offer their products online. The pandemic will change Black Friday in this way—it will further accelerate the trend of people avoiding the in-store rush and simply shopping online instead.

Since Illinois is seeing a surge in coronavirus cases like most of the country, Governor Pritzker has issued a Tier 3 Resurgence Mitigation Order, which limits capacity in stores, meaning fewer people are allowed in any merchandising stores at any given time (in this case, 25 percent capacity is the maximum by law). Due to this, there will be fewer shoppers permitted in stores for the time being.

Overall, though, the latest infection surge now during the holidays will not necessarily result in less spending. There will still be a spike in spending, but it will be spread out over a longer period of time instead of all at once during Black Friday and the weekend after Thanksgiving alone. At least, that is what retailers are hoping for, depending on the economic state of consumers.

Be on the Lookout This Black Friday

Some consumers might still be likely to commit bankruptcy fraud or run up their credit cards during the holidays this year, but they will probably do so over the next month rather than at the same time this holiday weekend. In fact, many might already be in financial trouble, and the holidays will tempt them to go over the edge toward irrecoverable financial status, leading to bankruptcy. If you notice already overextended cardholders spending unnecessarily or irregularly, you might want to flag the account and look into the matter before it does become a case of bankruptcy or bankruptcy fraud so that you can recover as much debt owed back to you as possible.

Contact an Illinois Credit Card Collection Lawyer

Debt collection can be tricky, especially during the holidays. During this time of year, people typically spend more money than they have on things they cannot afford, going further into debt, all in the spirit of gift-giving. Because of this, credit card companies and collections agencies should be especially vigilant since more people are bound to lose control financially over the winter holidays in the age of COVID-19. If you are concerned with a consumer’s spending habits and suspect fraudulent activity, contact a Chicago bankruptcy fraud attorney at 312-704-0771. The experienced professionals at Dimand Walinski Law Offices, P.C., will make sure you recoup as much debt that is owed to you as possible.

Sources:
https://www.bloomberg.com/news/articles/2020-11-17/u-s-bankruptcy-tracker-virus-shatters-retail-holiday-hopes
https://www2.illinois.gov/dceo/Documents/Tier%203%20Mitigation%20FAQ.pdf
https://detroit.cbslocal.com/2020/11/20/black-friday-covid-holiday-season-shopping/
https://commercialobserver.com/2020/11/black-friday-retail-coronavirus-shopping/