USURY

[tallyho8]

I believe that the credit rating services do a fairly good job and they are definitely needed in this day and age when a total stranger walks into a multi-national bank asking for a loan.

Without some kind of service to tell the banker about this man's credit worthiness, how would he know whether or not to grant a loan?

If things were still done on a small local scale and your two cousins each came to you wanting to borrow $50 and your relatives stated that cousin #1 had borrowed money from them many times and had always paid the money back on or ahead of the agreed upon time but that cousin #2 had borrowed money from each of them and never paid any of them back, which one would you lend the $50 to?










I know, someone is going to tell me neither one. Tell the shiftless bums to get a job. :laughing:

 

[2manyrocks]

Credit scoring is sort of a black box. I've seen people with scores in the 700's go BK or into foreclosure. More common with scores below 600. Even more with scores below 500.

I don't think anybody has mentioned that some states have gone out of their way to make themselves the place for credit card companies to locate by changing their usury laws to allow the kind of late fee and interest rate charges that people are seeing now. If I recall it right, then they can issue cards all over the US as part of interstate commerce and it doesn't matter what your particular state's usury rule is so far as having to pay the credit card company's charges.

The credit card company agreements pretty much say you've got to pay it all every month on time and if you are late, then you are fair game for all their charges. That's how they make their money is to sock it to people who get in a position where they can't pay it all back every month.

There was a time when state legislatures wouldn't let this happen and would restrict charges to reasonable rates, but now the mentality appears to be to get the business and the associated tax revenue from it however you can.

 

[JDgreen227]

With cousins like mine, $50 is pocket money, $5000 is what they would be asking for, and none of them will even ask because I'm known as the biggest miser in our family.

MY older sister who I had no contact with for eight years prior to my retirement, sent me a Christmas card saying: "Sorry I have not been in touch congrats on your retirement can I borrow $2500 by Friday (card arrived on a Tuesday" I will pay you back as soon as I can" and I had to wait two months for my first pension check...I didn't give her a cent and word got around to the rest of the family, guess I did something right....

 

[sodamo]

With cousins like mine, $50 is pocket money, $5000 is what they would be asking for, and none of them will even ask because I'm known as the biggest miser in our family.

MY older sister who I had no contact with for eight years prior to my retirement, sent me a Christmas card saying: "Sorry I have not been in touch congrats on your retirement can I borrow $2500 by Friday (card arrived on a Tuesday" I will pay you back as soon as I can" and I had to wait two months for my first pension check...I didn't give her a cent and word got around to the rest of the family, guess I did something right....

My wife was a soft touch before we married. Family quit asking us for money years ago. I guess all the questions, suggestions, and the expectation we get repaid was too big a price. We sleep well.

 

[mjarrels]

Congress reformed the credit card practices about two years ago... In my favor, nope. Still can't figure out why I continualy recieve "admendants" to my card. I agreeded to their statment six years ago, didn't say squat about repeaded admentants.

mark

 

[ultrarunner]

Congress reformed the credit card practices about two years ago... In my favor, nope. Still can't figure out why I continualy recieve "admendants" to my card. I agreeded to their statment six years ago, didn't say squat about repeaded admentants.

mark

Another one of my Pet Peeves... I think standard operating practice is to paper over everything so know one knows anymore...

Got one of those 23 page disclosures and 6 weeks later got another one that supersedes the one I had just received.

Remember the old days when agreements where a couple of paragraphs tops!

My rental agreements started out one page agreement with one page condition and inventory page... now, due to city, county, state and Federal regs... my agreement with required notices is 27 pages... and I always go through each page with new tenants...

 

[2manyrocks]

The disclosures would only be fair if tenants had to make the same amount of disclosures that (a) they trashed the two previous houses and (b) left owing $17,000 in unpaid rent and property damages and (c) are drawing X amount in government subsidies and Y amount in welfare which they spend first on cells phones, gas, eating out, and cable.

Where is your credit card issued from? South Dakota? Why does anybody HQ a credit card company in South Dakota? Cuz they like South Dakota law applying to their cards....it ain't because of the nice weather.

 

[Gale Hawkins]

The disclosures would only be fair if tenants had to make the same amount of disclosures that (a) they trashed the two previous houses and (b) left owing $17,000 in unpaid rent and property damages and (c) are drawing X amount in government subsidies and Y amount in welfare which they spend first on cells phones, gas, eating out, and cable.

Where is your credit card issued from? South Dakota? Why does anybody HQ a credit card company in South Dakota? Cuz they like South Dakota law applying to their cards....it ain't because of the nice weather.

I like the wit.

 

[Iplayfarmer]

I had a school teacher tell me once that the lottery is a special tax for people who are stupid at math. I'm beginning to think that credit cards are the same way. If you need to borrow money, there are much cheaper ways to get it than to pay the kind of interest rates that CC's charge. I think that even a signature loan at my credit union is only 11% interest.

I opened my first checking account all by myself when I was 17 with $1500 that I got from selling a horse. I added my Mom to the account a few months later only because I knew I was going to be out of the country for a few years, and I wanted to make sure someone still in the states could manage the account if needed. I'm still at the same credit union. They know me by name, and I can get a loan with a low interest rate any time I want. The last time I went in for a car loan, I didn't even see them pull my credit score. A credit score can't replace that kind of relationship even though that's the purpose. Last I checked, my score was comfortably above 700.

I got my first credit card when I was a freshman in college because they were offering a free T-shirt to everyone who signed up. I've had at least one card ever since. (I may even still have the T-shirt) During that time I've paid interest twice. Once on purpose when I was waiting for a student loan to deposint in my bank account. Once because my wife said she would pay the bills and didn't. (Guess who checks all the bills every month now.) I love the convenience of plastic. I agree with others that plastic payment is a necessity in today's financial world.

By law you can get one free credit report from each of the three agencies every year. The only way I know to get it free and clear is to go through www.annualcreditreport.com. Any other site makes you sign up for some membership or pay for a detailed report.

 

[ultrarunner]

I'm old enough to remember the days of personal banking... it doesn't exist anymore in my circles... first, staff doesn't stay around anymore and all of the regional banks here have been swallowed by the National Guys... I still remember the names of the Branch Manager and Assistant from when I was a kid... the manager retired with 40 years at that branch.

Years ago, are branch was thinking of getting rid of Saturday Hours... it was a Savings Loan and Saturday Banking was quite rare. I called and asked to speak to the President of the 17 branch Bank and he took my call, listened and said he had several calls that day... he told me there was a real possibility my Branch would keep Saturday Banking and it did.

Can't imagine doing that with any Bank today.

Sometimes, as a teenager, the auto parts store where I worked would make a large cash sale... the owner would call the bank and say he was sending me over and they would open the door for me... even a half hour after closing.

Recently, I arrived at my Bank 2 minutes before closing and literally had the lady dead-bolted the door with my hand on it... she said it was company policy and she recognized me.

Made a switch to the local credit union not too long after that... the interest they paid was better and I was pleased... that has changed and the Bank is now double the credit union... go figure?