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Re: payday lenders

Iwrite — Mon, 07 Jan 2008 19:20:34 GMT

Subprime was not wrong. Variable rates were wrong. The problem was that people who were making their payments saw their payments balloon to a rate that was predatory. No one has claimed that fixed subprime loans were the problem, this is a "variable" problem. And there were fixed subprime loans.

Contradicted? How so? I said and am saying that lending decisions are based on more than credit scores, and it has been documented. I called banks wrong for not applying the rules the same for everyone. I stand by that. I think subprime has its place, it works in the automobile lending industry because the rates are NOT variable.

Now, ask me what I think about credit one day and we will really have things going. I think credit is the best marketed product on the planet. People have become convinced we cannot live without it, and this has happened in less than 120 years.

Re: payday lenders

CorpCons08 — Mon, 07 Jan 2008 19:16:40 GMT

Everybody at some point in their lives go through hardships.
It is a factor of life. I am not saying the world is perfect.
What I am saying is you are blaming everybody for your problems.
That gets you nowhere. CC08

Re: payday lenders

rayandnay — Mon, 07 Jan 2008 19:12:40 GMT

hey, been there and i was working, kinda sad

Re: payday lenders

rayandnay — Mon, 07 Jan 2008 19:09:36 GMT

you are missing the point, there are things in place to keep certain people down, why else create a law to even the playing field. a loan officer once told me she took two credit reports one black one white, same problems , and the credit score for the black person was 100 points less, i know you want to believe that this is a perfect society, but this country has a lot of secrets, you are fortunately on the right side, you will never have to walk in our shoes. believe you me they will take the risks when things go farther south, and they will

Re: payday lenders

Iwrite — Mon, 07 Jan 2008 19:06:11 GMT

Thank you.

But I really wish I was wrong. I wish things were different but they aren't. I have friends who lost their jobs after working 15 - 25 years for a big electronic retailer, who may never recover. These aren't bad people but they aren't you and I, they want to work for someone, not be their own boss. The reality is that they are too old and too expensive for corporate America. That's no one's fault. It wasn't a plot, times changed more rapidly than people could adapt.

Try being unemployed for three years and tell me what your credit is going to look like? I did it. There were days when the best I could do was feed my family. My savings and investments carried me through for almost a year, freelance kept food on the table and the lights on but not much more. I worked any and all the jobs I could get but we were so far behind that it didn't make sense. Here it is 4 years later and I'm still trying to recover - savings gone, house gone, bank accounts gone. And I consider myself one of the lucky ones. Others lost more, so much more.

My bank, the one I have been a loyal customer with for over 20 years wouldn't touch me. All the money they made off of me, and when I needed a small loan (less than $10,000) to float my family through it was "no" - it's just business. I had to go to the payday lenders. I hated doing it but we had to live. I paid them back before the interest kicked in. I see how bad they are but at least they were there. Where was my bank?

I am sorry if this turned into my soapbox, but if you haven't lived it don't dare try to tell someone that they need to get it together.

That's just wrong, morally wrong.

I would not have wished this on my worse enemy.

Re: payday lenders

CorpCons08 — Mon, 07 Jan 2008 18:56:45 GMT

I agree that subprime is wrong. That is also why subprime has collapsed.
There are almost no subprime loans being produced.
However, you call banks wrong for not wanting to do these lower credit score loans.
The subprime mortgage crash cost banks billions of dollars because they created credit for lower credit scores.
Can you blame them for not wanting to take on the risk?
You basically contradicted yourself by posting that article.

CC08

Re: payday lenders

rayandnay — Mon, 07 Jan 2008 18:25:49 GMT

iwrite you should play the lottery today, because you are so right it is amazing, good ole america with all its secrets and this is one of the biggest, and that is why the government had to enact the equal credit opportunity act of 1975, and why there has been 3 successful class action lawsuits using this law. there has to be a reason why blacks still live in the worst neighborhoods, have to go to rent-a=centers and pay 1,000.00 for something that costs the average person 200.00, why payday lenders cater to these neighborhoods, the ultimate reason just take a look at the subprime mess that has ruined this country, and because it now affects everyone it is amazing how our government has jumped to find a remedy. your comments are a breath of fresh air, and believe me as time goes by many more will know what it feels like to be behind the 8 ball.

Re: payday lenders

Iwrite — Mon, 07 Jan 2008 17:01:41 GMT

I'm not sure. But here is one article. I know it is date October of 2007 but how much has changed in the last few months?

www.nytimes.com/2007/10/15/nyregion/15subprime.html?_r=2&oref=slogin&oref=slogin

Re: payday lenders

CorpCons08 — Mon, 07 Jan 2008 16:38:53 GMT

How can that be when most banks are using an electronic input that approves the loan based on credit score only?
A monitor cannot tell what nationality you are or what race you are.
That is one of the reasons the electronic input came to be.

CC08

Re: payday lenders

Iwrite — Mon, 07 Jan 2008 16:24:06 GMT

CorpCons. It has been proven that is not the case. Banks do lend at different rates for different people, despite credit scores being the same. Red-lining has been proven. We know this but choose to overlook it as long as it doesn't effect us. Lending practices have been called into question for years, the fact that no one cares doesn't mean it doesn't happen.

There was an article on the web about the lending pracitces for mortgages, and how even when things were equal African Americans get higher interest rates. All things being equal they are not.