They basically want people to pay back the money but accept that they will have to write off 15% of what they lend. There is no incentive for them for people to fall behind on payments - it ruins their margin rather than improving it. Think about it would you be happy to let someone who owed you money and hadn't paid you back keep it on the basis that you could tell them they owe you more money or would you rather get it back and lend it at the same interest rate to someone likely to actually pay you back.