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To: atrocitor
The balance are caused by divorce, illness, injury, job layoff and entrepreneurial failure in that order.

In other words, people who are spending more than they can afford. Many of us have had times in our lives when we have had to cut spending because of some adversity. Most of us do it.
I don't have a lot of sympathy for people who think they "deserve" to have all of the things they can't afford.

51 posted on 03/09/2005 6:48:51 PM PST by speekinout
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To: speekinout

i will stipulate based on your representation that you have a higher breaking point than others. But you have a breaking point. And there but for the grace of God circumstances have not yet pushed you to it. But if that should ever happen God forbid, we will be waiting there to make a lot of additional money off you with this new bill, and MBNA et al will be there waiting to make more money off you with this new bill. And why should the law be changed so us lawyers and MBNA can make more money off you? You tell me.


52 posted on 03/09/2005 7:09:51 PM PST by atrocitor
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To: speekinout
I agree with you that people are often spending more than they can repay.

I took a class several years ago when I became president of the small credit union that my company had. One of the laws back then was that the lender took some of the liability if they gave credit when credit wasn't deserved. There was accountablilty. That changed at the urging of lending companies and banks.

We used the 3 C's of credit. Character (past history of payments) Capacity (the ratios of debt to credit) and Collateral (if the loan was big enoough, what was being given that would compensate if they loan went sour). Those are no longer used.

In addition, there are severe predatory lending practices going on that lure people with sweet credit only to have it turn against them with a late payment or some other ability to change the rules as the months go by. That needs stopped.

Granted, too many people who don't deserve credit are getting it and if they don't then it's not their fault but a mean old nasty lender. But then business people should be making business decisions.

One other thing. A friend ran a company. They tried to get loans for legitimate purposes. The loans were small, but had the ability to meet all payback obligations. A banker told them they needed to do bigger loans in order to get funds as small loans, while sound in ability to repay were not rewarding enough to do business on. The friend went out and arranged a purchase that made no sense at all, would never work out could never be repaid, yet he had leanders begging to do business. We he got the loan, failed and in the workout got to keep the assets that were profitable and gave the bank the dogs. HE then sold the profitable properties and made out like a bandit.

74 posted on 03/11/2005 1:37:37 PM PST by joesbucks
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