thir
08-02-2014, 11:44 AM
Bad News: Subprime Loans are Back and Ready to Exploit More People
Now, a similar lending style is cropping up at auto dealerships, which are already infamous for exploitative lending practices. Tragically, those with trashed credit from the earlier financial crisis are being pushed into risky loans, thus exacerbating the problem even more. Net worth for people of color has dropped dramatically since the recession, and that problem is likely to get worse as people are forced to take out bad loans in order to access transportation — many low-income people of color need cars to get to work and navigate their communities, which often have poor public transit access.
People are getting in over their heads with vehicle loans, falsifying their income, signing exploitative loans, accepting loans with outrageous interest, and more. If it sounds familiar and you’re wondering why Congress didn’t do more to put subprime lending in check, you’re not the only one.
The answer to that question lies in part in lobbying from the banks, which have a vested interest in continuing to offer subprime loans, thanks to the large profits it generates. For Congress to enact meaningful reform, it make take a firebrand like Elizabeth Warren to push for harsher regulations and better enforcement.
Meanwhile, subprime lending is posing an immediate problem in low-income communities of color across the United States, and regulators need to act soon if they want to prevent another financial bubble that explodes in the face of the financial industry. As the resurgence of such loans indicates, the banking industry appears sluggish to learn from its mistakes — perhaps it’s still laboring under the belief that it’s too big to fail?
Read more: http://www.care2.com/causes/bad-news-subprime-loans-are-back-and-ready-to-exploit-more-people.html#ixzz39GHY3akT
It tells a lot about a system when all this is allowed to happen again!
Here in the UK loans on horrible conditions are also offered to desperate people. I do not understand how this can continue to do on like that?
Now, a similar lending style is cropping up at auto dealerships, which are already infamous for exploitative lending practices. Tragically, those with trashed credit from the earlier financial crisis are being pushed into risky loans, thus exacerbating the problem even more. Net worth for people of color has dropped dramatically since the recession, and that problem is likely to get worse as people are forced to take out bad loans in order to access transportation — many low-income people of color need cars to get to work and navigate their communities, which often have poor public transit access.
People are getting in over their heads with vehicle loans, falsifying their income, signing exploitative loans, accepting loans with outrageous interest, and more. If it sounds familiar and you’re wondering why Congress didn’t do more to put subprime lending in check, you’re not the only one.
The answer to that question lies in part in lobbying from the banks, which have a vested interest in continuing to offer subprime loans, thanks to the large profits it generates. For Congress to enact meaningful reform, it make take a firebrand like Elizabeth Warren to push for harsher regulations and better enforcement.
Meanwhile, subprime lending is posing an immediate problem in low-income communities of color across the United States, and regulators need to act soon if they want to prevent another financial bubble that explodes in the face of the financial industry. As the resurgence of such loans indicates, the banking industry appears sluggish to learn from its mistakes — perhaps it’s still laboring under the belief that it’s too big to fail?
Read more: http://www.care2.com/causes/bad-news-subprime-loans-are-back-and-ready-to-exploit-more-people.html#ixzz39GHY3akT
It tells a lot about a system when all this is allowed to happen again!
Here in the UK loans on horrible conditions are also offered to desperate people. I do not understand how this can continue to do on like that?