“Subprime loans are issued to borrowers with poor credit histories who often lack the funds to make large down payments.”
Seems to me that someone with poor credit history should not be given a loan at all.
Sorry, but this does indeed smack of predatory activity, especially since the corporation knew ahead of time that these people were a poor risk.
There’s enough “blame” to go around on both sides in my opinion.
Agreed.
That's a blanket statement that is not completely accurate. It really depends on several factors. First, why is their credit bad? Is it a habitual thing, or something that happened and has been corrected? Realize that a rash of late payments 3 years ago from a job loss, that you've caught up on and redeemed still pulls your FICO scores down - and since you're not really a major risk in that circumstance, something should be available to you. Or - perhaps a divorce? That's different than someone who, over 10 years of credit history, has never paid a single bill on time. It's that latter group that is the problem. Subprime used to be for the first example, but too many of the last example didn't perform as well.