Saturday, July 23, 2016

The Robust Theory Of Risk-Based Lending ...

An economy on the edge...!
In this economy, if you, as a consumer, have recently experienced a couple of those unfortunate, unexpected, "real-world, real-life" financial flareups don't despair! Proponents of risk-based lending (RBL) know how to help you get out of trouble!  

According to risked-based theorists, the best answer for those on the "financial ropes" is to offer you a loan with a higher rate!  If you can't handle the regular rate,  "upping the ante" is bound to enhance your ability to repay - right?  

'Ya follow that logic, don't 'ya?!?

These guys have come up with "a new financial life preserver" for those who are economically "drowning".   
Here it is...


Risk Based-Lending :

Helping you sink or sink!! **

** Payday lenders please add 3 blocks and 2 bags of cement - just to make sure!


Gregg Stockdale said...

The rate is set by the borrower.. just like your auto insurance is set by your driving record. Those with great records obtain the lowest rate. Those that don't .... well, don't. It's never been what rate you could handle. That's totally illrelevant to the concept of RBL. Sometime life happens to us and sometimes we do it ourselves, in order not to discriminate, the rate is set by the record, not the cause. Most aren't drowning, just not taking care of their finances as much as they should or living beyond their means. Remember, when your out-go exceeds your in-come, your up-keep becomes your down-fall. Easy.

Dennis Moriarity said...

Auto insurance is set by your driving record???? What planet do you live on? Redlining is a fact of life for too many people and it carries through to homeowners as well if they happen to live in the "wrong" area. You can make all the weak excuses you wish for ripping off borrowers with risk based lending but it is nothing more than discrimination and a general inability to properly manage any institution that adopts it. So if I get your gist you believe it is a needed discipline because the borrower, has somehow, screwed up and they are solely responsible for the factors that allow you to rip them off. I live in Michigan and guess what lots of people here are affected by plant closing and layoffs. Most of the time they don't have any way to do anything about it and a lot of the time the eventual slow pays find their way to their credit scores. To punish them for circumstance beyond their control would be the height of arrogance. A trait you seem to be the poster boy for. Yes some do have bad habits and overspend and eventually find themselves in a credit pinch. At our credit union we refer these people to our Greenpath partners in an effort to do what the credit union was established to accomplish because we believe that is a significant part of our responsibility. The credit union belongs to all its members and they should be treated equally. I have been working in credit unions for over 50 years and to be brutally honest I think if you are working in one they should be looking for someone who has a better understanding of what these member owned institutions are about. You probably came from a bank.

Jim Blaine said...

Well now, two of my favorite readers arguing, what has this blog become - OMG!

Not sure which one is Ms. C. and which one The Donald!