Who will hold the predatory lenders accountable?
With everything in the news lately about the mortgage and credit crisis, it got me to wondering – when is the blame going to fall where it belongs? Why is it so hard to understand that there are companies out there who are simply taking advantage of consumers? There are laws against usury, but there are always loopholes and these predatory lenders exploit them to the fullest. They hire lawyers that advise them of how to get around the laws.
Of course, the consumers are always partially at fault, either by not reading terms and conditions or ignoring important loan language that ends up with them not being able to pay their bills.
When will the government stand up and hold these companies accountable? They are ruining people’s lives.
I agree with you guys, I do. I don’t think it’s right for the government to be bailing people out of bad decisions by offering handouts. And it is definitely the consumers’ fault for putting themselves in these predicaments. My question is – when and how will somebody keep this from happening in the future? The law needs to be firm with lending practices so the consumer and the financier are working in harmony. Right now it seems to me that there are too many companies operating in the gray area between what is ethical and what is legal.
Mario
September 5th, 2010 at 5:05 am
Peter
The government can’t wipe everyone nose for them. People have to start to use their brains a little. I’m aware of people that refinanced their house five times in five years so they could take vacations. That is not any ones fault except the people that did it. I agree some of the problem emits from the companies, but I think there is a lot that is from the people.
September 5th, 2010 at 3:50 pm
Eric
I understand your question but my problem is with these people ACCEPTING these predatory loans. I get soliciations for credit cards and loans EVERY day.
Seven years ago when I went to buy this house, I called my bank to see what kind of loan we would be approved for, and when they told me theywould approve us for a $1300 monthly house payment, I actually said to them “IN WHOSE WORLD??? HOW WOULD I FEED MY CHILDREN?!?!?!?”
And the house we bought is nice, just not one of “those” homes.
What ever happened to the starter home? People are getting out of college and getting married and buying these homes that used to be considered a retirement home or the last of around 3 homes people would buy in their lifetime. I have a hard time feeling sorry for the people who are now getting foreclosed on. Gee, HELLO, you think? Unless of course it is a legitimate reason like loss of emplyment, etc. But the predatory lender excuse is, IMHO, getting old. Take some responsibility for your own decisions, I say.
All I can picture is little children jumping up and down clapping their hands squealing “yay!!! I’m gonna get the money!! I’m gonna get the money!!!” and not even thinking for one nanosecond as to HOW they are going to repay it. DUH.
September 6th, 2010 at 5:52 pm
Lillian
I had a lot of money in the stock market when Bush got in…I lost most of it…………………..No one helped me…………..and I was hurting
September 9th, 2010 at 12:25 am
Carl
Actually there was a article on Yahoo just yesterday about proposed changes in the laws regulating lenders to address this very kind of thing.
Guess we will have to wait and see what the Government doe’s.
September 12th, 2010 at 1:20 am
Veronica
predatory lenders are flim-flam men, thieves, stick-up artists and scum. ‘course that’s just my opinion. i have a feeling that the lenders make sure they cover up any negative features and seek to sign the poor sucker as fast as possible. it’s nice to say ‘let the buyer beware,’ but i think the word ‘predatory’ pretty much makes that argument moot. those who would be homeowners were hardly buyers; they were victims. a friend of mine used to sell subprimes and when i asked him why anyone with less than very good credit would buy a home, he said, ‘it’s the american dream.’ so predatory lenders feast on dreamers. but we ignore the real problem: education. few of us were taught about money and its many uses and possible abuses. junior high and high schools, if they would seriously teach this serious subject, would go a long ways toward solving this mess as well as the high level of credit debt carried by the average american family. finally to say consumers are obligated to read the fine print is correct. on the other hand, i’m a pretty smart guy and i can’t understand the legal gibberish. it might as well be in a foreign language. hey, know what my credit score is? zero. true. twenty years ago i got a credit card, screwed it up due to my own ignorance, and never had another one. i’m not saying we don’t need credit in this society, just that i don’t and i live pretty well.
September 12th, 2010 at 5:59 am
Wendy
In the United States, it is our Judicial system that holds people and corporations accoutable for their illegal actions. It should NOT be up to the Government to hold them accountable, but rather, the people of the country. The people have to take these corporations to a Judge and Jury and have them proclaim judgement and prescribe a remedy if they have done something illegal. Why Congress has decided to stick their noses in this business is beyond me. Of course, next year IS an election year. They have to make it look like they have done something while in office.
Ultimately, it is up to the populace to put things right. It is up to the people who took on these mortgages knowing they were not in financial position to do so to accept their own responsibility for their actions. It is up to you and me to refrain from doing business with companies who have practiced predatory lending in the past.
There are people who were taken advantage of out there. Those people need to petition the courts for relief, not the President. (He isn’t really going to help anyway. If one takes a close look at what programs he has developed, one can see they don’t really help anyone who really needs help).
Just my opinions, folks, take them for what they are worth.