Predatory Bank Practices

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   Daniel Carterposted 14 years ago

   I noted on the news last night that congress is trying to control bank interest rate hikes, and other predatory practices, at the same time that banks are countering such moves as quickly as they can with sudden new hidden an announced fees. So the madness continues.
   
   I've been trying to refi my home. The mortgage was a Country Wide loan, sold to Bank of America. After (seriously) 10 phone calls I had virtually no help or answers as to why they wouldn't help me refi my mortgage to lower the interest rate. So then I called the Obama plan for loan modification and guess who answered? Bank of America. Not even a joke. Guy said, "The buck stops here" promised a lot and then never called back, didn't return calls and more.
   
   I went through 5 (really FIVE) more lenders before I found one that was legit and could work with me. I didn't have a bad loan, except that it was a loan to my advantage, not B of A's, and they declared it "junk" loan because they categorized it as a liability to THEM.
   
   The news article said that credit unions don't have such predatory practices, and I think Americans are going to catch on to that. I've banked at a credit union for 20 years, and have always had good luck with them (except for this mortgage refi).
   
   I don't know about you, but I think if we don't want to be controlled and "owned" by these money machines, we need to bring them to their knees by taking our accounts and everything we possibly can to smaller, more local (but proven reliable) institutions like credit unions.
   
   What are your thoughts?

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      mod2vintposted 14 years agoin reply to this

      I have been banking with a credit union for over 15 years, don't think they are not sneaky either. The newest fees with them: Use your debit card for a non signature purchase and you get a .25 fee have a statement mailed to you instead of getting it online a fee. The statement thing doesn't bother me so much, but the one for using the debit card does. After all they spent years training us to use the damn cards now they tack on the fee.

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   Mishaposted 14 years ago

   It takes two to tango. As soon as you stop being a prey, they stop being a predator

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      jerrylposted 14 years agoin reply to this

      Misha,  Yes, it takes two to tango.  If the banks do not make loans, the system collapses.  If people don't borrow, the system collapses.
      The banksters caused the depression, by contracting the money supply.
      
      Under this debt system, not all people can stop being prey.  If that occured, we would be left without a medium of exchange.  The system has to be changed. The masses, will never be able to totally get out of debt, until that change comes.
      
      If you have money, someone else has to have debt, or the money would not exist.  The select few prosper on the indebtedness of the many.

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         Daniel Carterposted 14 years agoin reply to this

         Greed and predatory practice will not go away because of any sudden benevolence to humanity. If and when the system collapses, it will be because we all played the game and perpetuated the root problem: greed. It's the attitude of corporations about capitalism that perpetuates the problem, not capitalism itself.
         
         As long as we are willing to play the game, we will perpetuate it. And yes, that's an extremely difficult thing to have to separate yourself from, but there must be alternatives that are better than subscribing to this horrible mess we are now in.

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         cheaptrickposted 14 years agoin reply to this

         You ain't seen Nothing Yet!Just wait till those Derivatives come home to Roost!The Dollar is untenable Now,it only works because it's the World Reserve currency.That is about to Change!I've said it before...Get your Money Out of Money!

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            Daniel Carterposted 14 years agoin reply to this

            I think there's a lot of truth to what you say, here. In the great depression banks collapsed and people did too. Now people are hardshipped a lot, but the FDIC guaranteed the funds when the little (and big) banks started falling two years ago. It's really only a matter of time before money is truly worthless. The system, I think, is imploding and people are running to hold it up, but when push comes to shove, we'll need commodities first. How to get them will rely less and less on money, I suspect.

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   livewithrichardposted 14 years ago

   I do 90% of all my banking with my credit union, I cut up all my credit cards 3 years ago even the ones with only 3% int rates. I've never had a problem, in 10 years, with my credit union.
   
   My girlfriend, who has a perfect 800 credit score just took 8 months to get her mortgage modified, she was never late on a payment but went through a life changing event a couple years ago (divorce) which qualified her for the modification.  She was on the phone with the lender every 2 weeks seeking updates on the mod but they just sat on it forever.  Now that it is complete there is a sigh of relief.  But 8 months to do something that should have only taken 3 is ridiculous.

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   Cagsilposted 14 years ago

   The banking system has been broken since it's inception.

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   Arthur Fontesposted 14 years ago

   I think the banks should fall under the jurisdiction of each Attorney General of every state that they want to do business in.
   
   Right now the comptroller of the currency (John C. Dugan) would be the only one to prosecute a bank for illegal activities.
   
   Compucredit which owns Aspire credit cards are pretty much racketeers and could be prosecuted under RICO statutes.  So could a lot of other predators which call themselves lending institutions.

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   tobey100posted 14 years ago

   I have a simple rule I go by.  If I don't like their practices, I don't deal with them.  Period.  I let everyone worry about themselves.  It always rings so childish to hear the outcry of "these banks are cheating me, someone do something" when who told you to deal with that bank in the first place.  All banks are not greedy crooks.  My little home town bank has been here for 120 years and I can still get a car loan on a handshake.  We do the paperwork later.  Sorry but we're not all victims.  I'm not and I won't ever be.

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   Arthur Fontesposted 14 years ago

   Tobey what I have been seeing even with those with excellent credit is the removal of available credit by the banks.
   
   To maintain a credit score you should have no more than 30% of your available credit used.
   
   If you have a $10,000 limit with a $3000 dollar balance you are in great shape.
   
   When your bank takes away the available $7000 you become maxed out causing your score to drop.
   
   When it drops below a set score the bank raises the interest rate. 
   
   Keep doing business at your small home town bank.

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      tobey100posted 14 years agoin reply to this

      You're absolutely right.  Know how I avoid that problem?  No credit cards and no credit.  Don't think I've had a credit score in 25 years.  I do realize everyone can't operate that way.  A large portion of our society has to have access to credit and I have no doubt banks and lending institutions do their best to squeeze every last buck out of us.  I just don't cooperate.  I worked toward never needing a bank again.  it was a goal.  We have the ability to pull ourselves up and not be victims.  For someone who's willing and able to work, has a goal and the drive to reach it, crying for someone to do something (especially if its crying to the government) is like knowing how to swim yet standing on the deck of a sinking boat screaming for help.  Just swim.

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   JeanMeriamposted 14 years ago

   Daniel,we deal with a trust company and have never had a problem. I don’t know what your credit unions are like where you are, but here they are all banding together into super credit unions and getting as bad as the banks.
   Glad you managed to get something done in the end though.

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   Jane@CMposted 14 years ago

   Credit Unions are good!  I've been with mine almost 30 years (gah)!

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    Home Girlposted 14 years ago

    Prosperity of capitalism in North America was built on credits and loans. Who can change that - coyote genious? And how? Try socialism, guys. Just warn me, when you get started, so I can pick up my suitcases and run to ... Alaska(?)

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    Dolores Monetposted 14 years ago

    If I needed a new mortgage, I'd go to a small, local savings and loan. The local bank I deal with has never had any problems. I met an old guy in the parking lot years ago, who told me that he had his money in that bank during the Great Depression and never lost a penny. Huge institutions are just people gouging machines.

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    Wayne Orvisburgposted 14 years ago

    Sounds like the free market at it's finest. Just not everyone is up to the challenge.

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       cheaptrickposted 14 years agoin reply to this

       Nothing to do with free market!
       This has to do with Globalization and leveling All countries economies,thus we see many countries with Currency problems...

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          Wayne Orvisburgposted 14 years agoin reply to this

          Uh, you having the choice to go to another bank is called the free market. Thats what I was trying to say.

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