What are your opinions on schools that have no fail policies?

In mine I skipped every second day and did no homework and only showed up for the tests… and I passed junior high with a 65% average… I wonder how that affected my future…I made it through 3 years of university/college before I was found out…and eventually failed… Is this a common occurrence and should something be done to stop students from falling through the crack… I live a happy life and I am successful. What do you think?