Are American banks trying to dig themselves out of the hole on the average American's back? Take some time to click on the link below and read a great article by Trish Gannon over at River Journal. The story paints a picture of lender arrogance and it begs the question, were our bailout dollars appreciated?
If creditors are actively striving to help jump start the economy, especially after accepting bailout dollars, then why don't they work with borrowers not against them? One would think that it would be simple common sense to lower interest rates prior to forcing borrowers into bankruptcy -and prior to encouraging them to fall several months behind on their payments, and prior to their credit ratings being destroyed and prior to having debt collectors on their backs too!
As crazy as it sounds, I often hear from borrowers who are incredulous at their banks refusal to work with them until they are several months behind in payments! When they ask their bank to work with them by lowering mortgage interest rates, their requests have been answered with shocking responses... "we can't lower your rate unless you are a few months behind in your payments". By taking this stance, they are in essence encouraging borrowers to destroy their credit rating, for years to come. How does spiking interest rates and ruining a consumer's credit rating -help to fix the economy? Wouldn't it make more sense to work with borrowers before they ruin their credit rating and before it causes them to pay both higher interest rates and insurance premiums?
These type of unfair and harmful practices only serve to remind us why we must have regulatory oversight and laws that mandate accountability, transparency and fairness.
Here's a part of Trish Gannon's article and link to the full story.
"...Although banks have figuratively gone to the taxpayer with hat in hand to beg, "Please, sir, I want some more," the role they seem to have cast for themselves recently in this Dickensen financial melodrama is more in keeping with the board members of the poor house when dealing with those same taxpayers who are customers.
Have you opened your credit card statement lately? Many have, only to be shocked to find the rates on their credit cards have climbed astronomically--in some cases, more than 100 percent....More
If creditors are actively striving to help jump start the economy, especially after accepting bailout dollars, then why don't they work with borrowers not against them? One would think that it would be simple common sense to lower interest rates prior to forcing borrowers into bankruptcy -and prior to encouraging them to fall several months behind on their payments, and prior to their credit ratings being destroyed and prior to having debt collectors on their backs too!
As crazy as it sounds, I often hear from borrowers who are incredulous at their banks refusal to work with them until they are several months behind in payments! When they ask their bank to work with them by lowering mortgage interest rates, their requests have been answered with shocking responses... "we can't lower your rate unless you are a few months behind in your payments". By taking this stance, they are in essence encouraging borrowers to destroy their credit rating, for years to come. How does spiking interest rates and ruining a consumer's credit rating -help to fix the economy? Wouldn't it make more sense to work with borrowers before they ruin their credit rating and before it causes them to pay both higher interest rates and insurance premiums?
These type of unfair and harmful practices only serve to remind us why we must have regulatory oversight and laws that mandate accountability, transparency and fairness.
Here's a part of Trish Gannon's article and link to the full story.
"...Although banks have figuratively gone to the taxpayer with hat in hand to beg, "Please, sir, I want some more," the role they seem to have cast for themselves recently in this Dickensen financial melodrama is more in keeping with the board members of the poor house when dealing with those same taxpayers who are customers.
Have you opened your credit card statement lately? Many have, only to be shocked to find the rates on their credit cards have climbed astronomically--in some cases, more than 100 percent....More
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nice topics, would you like sometime to write about economic in my country (Indonesian) :-)