Lenders are at it again!

[cthulhu_waves]

Why do people never FUCKING learn?!?!

People just want the "american dream" financial institutions, beholding to Wall Street, both are to blame but the institution moreso. They should adhere to the responsible lending mandates given as guidelines by the FED. I thought there was a law enacted to stop this? Did GOP obstructionism defeat that as well as most other sound policy?

Annette Alejandro just emerged from bankruptcy and doesn?t have a job, and her car was repossessed last year. Still, after spending her days job hunting, she returns to her apartment in Brooklyn where, in disbelief, she sorts through the piles of credit card and auto loan offers that have come in the mail.

Even I wouldn?t make a loan to me at this point,? Ms. Alejandro said.

In the depths of the financial crisis, borrowers with tarnished credit like Ms. Alejandro were almost entirely shut out by traditional lenders. It was hard enough for people with stellar credit to get loans.

But as financial institutions recover from the losses on loans made to troubled borrowers, some of the largest lenders to the less than creditworthy, including Capital One and GM Financial, are trying to woo them back, while HSBC and JPMorgan Chase are among those tiptoeing again into subprime lending.

Credit card lenders gave out 1.1 million new cards to borrowers with damaged credit in December, up 12.3 percent from the same month a year earlier, according to Equifax?s credit trends report released in March. These borrowers accounted for 23 percent of new auto loans in the fourth quarter of 2011, up from 17 percent in the same period of 2009, Experian, a credit scoring firm, said.

Consumer advocates and lawyers worry that the financial institutions are again preying on the most vulnerable and least financially sophisticated borrowers, who are often willing to take out credit at any cost.

Read the entire article here.

[u-Bob]

"responsible lending mandates given as guidelines by the FED"

eh? Got a link to those guidelines?

[pimpmaster9000]

As long as others get to pick up the tab its no problem for the banks. Shit If I was a banker and had nothing to lose and commissions to gain I would be pushing free money like it was well free

They were rewarded last time they went bankrupt so why not do it again? Makes no sense to quit....

[kane]

There is a commercial that runs where I live all the time that is from an Indian casino that will lend you $5,000 and have it in your account within 24 hours. If you read the fine print you see that you have to pay it back in 60 payments of $455 each. you end up paying back $27,300 on the $5,000 you borrowed. With insane rates like that they can afford to have some people default and they still make a ton of money.

[sperbonzo]

You do realize that those crazy lending practices were being pushed forward by BOTH parties right? The Democrats were using the Community Re-investment Act to push banks into these practices in the first place, and then blocking investigation of the Fannie and Freddie practice in the early 2000's.



.

[raymor]

Originally Posted by sperbonzo

You do realize that those crazy lending practices were being pushed forward by BOTH parties right? The Democrats were using the Community Re-investment Act to push banks into these practices in the first place, and then blocking investigation of the Fannie and Freddie practice in the early 2000's.



.

Yeah it was the DEMS forcing banks to make mortgages to people who couldn't afford them, mortgages that would have to br foreclosed, so for him to even mention politics is stupid. If you support the democrats, you don't want to make this a partisan issue, or even bump the thread. Tting to blame republicans will only get the facts thrown in your face.

[JFK]

Originally Posted by kane

There is a commercial that runs where I live all the time that is from an Indian casino that will lend you $5,000 and have it in your account within 24 hours. If you read the fine print you see that you have to pay it back in 60 payments of $455 each. you end up paying back $27,300 on the $5,000 you borrowed. With insane rates like that they can afford to have some people default and they still make a ton of money.

Yeah, I saw that somewhere, Honest Injuns

[DWB]

This is exactly why the entire system is going to eventually collapse. The root of the problems are not fixed. Ever.

But in the meantime, people are going to make as much money from it as possible and ride it all the way until the wheels fall off.

[Supz]

just because you get offers in the mail, doesnt mean you are going to get approved. they send those to everyone.

[96ukssob]

its more prequalified stuff than anything else. no bank is going to send you ANYTHING unless you signup first, they got in big trouble years ago for that.

everyone gets these things, my dead grandmother gets credit card offers all the time.

[Rochard]

The moment you go through a bankruptcy, you become the perfect creditor - no debt and you can't default again for seven years.

[kane]

Originally Posted by Rochard

The moment you go through a bankruptcy, you become the perfect creditor - no debt and you can't default again for seven years.

Yep. My brother and his wife went through bankruptcy about 3 years ago. As part of the bankruptcy they had one of their cars repo'd so they needed a second car. Then went to the used car dealer assuming they would never get a loan and the dealer not only approved them, but he told them they could qualify to buy a new car if they wanted.

[keysync]

How much of this spending the contributes the "improving economy" we keep hearing so much about?
It's 12.3% according to this report, right?

[porno jew]

Originally Posted by kane

There is a commercial that runs where I live all the time that is from an Indian casino that will lend you $5,000 and have it in your account within 24 hours. If you read the fine print you see that you have to pay it back in 60 payments of $455 each. you end up paying back $27,300 on the $5,000 you borrowed. With insane rates like that they can afford to have some people default and they still make a ton of money.

ftc is going after them right now. those fuckheads should burn in hell.

[DatingFactory]

Originally Posted by DWB

This is exactly why the entire system is going to eventually collapse. The root of the problems are not fixed. Ever.

But in the meantime, people are going to make as much money from it as possible and ride it all the way until the wheels fall off.

you got it right.

[sandman!]

not a big surprise

[raymor]

Originally Posted by keysync

How much of this spending the contributes the "improving economy" we keep hearing so much about?
It's 12.3% according to this report, right?

Just exactly like the trillions the government spent, the extra $20,000 in debt Washington created for each of us, it makes it appear to suck slightly less this year, but we'll have to pay up in coming years.

I've always been an optimist, saying that every down cycle is followed by an up cycle, but I can't see any way out of the debt we've accrued in the least three years. I.sure don't have an extra $20,000 to pay back what the president put me on the hook for, do you? Certainly not my $20,000, the $20,000 for my retired mother, and $20,000 for the "poor" guy down the street. Is there any possible way we can pay back China $60,000 from each of us who are working and paying? I've never been scared for our country before but I don't see any way the math comes out other than we are fucked.