Before you go speculating about their motives, it's important to READ THE ARTICLE. They're a non-profit. Practically a charity. If making money was their primary goal, they wouldn't be in this line of work.
Toxic assets? Did you read the article? This "bank" basically operates as a very low interest rate pawn shop and 90% of people end up purchasing their property back after repaying the loan.
Actually, it is a nice gesture. Of course it is for PR, but they did not have to do it and in the process, they made a few people happier for a short time.
before you go praising them, it's important to consider that it probably costs them more money to have these debts on file than they're worth all together. (processing, collection, paper work, records, year after year, etc).
I don't want forgiveness. I want USURY CONTROL. simply making my interest rates non usurious would do AMAZING things for my bottom line quality of life and the rate at which I could pay down my debt.
lowering my 30% average interest rates (and I have good credit) to even just 10% would cut my payments in HALF and still allow me to pay them down twice as fast.
it operates as a pawn shop. folks don't need to make monthly payments. they only need to pay off the balance to get their goods back. as such, there are no collections and the bank already has some small of collateral for the loan (which, in this case, they are returning to the customer free of charge), the sale of which could make up for at least some of the amount owed if some sort of contractual term were reached without payment. subsequently, your original point doesn't seem entirely vald and you may have profited from reading the artice, as apokalyps2547 suggested.
If you actually do have good credit, then you should have no issues getting credit cards with 0% balance transfer offers. There's tons of these out there. You pay a (typically) 3% fee up front and then the balance is 0% for (typically) 1 year. When the year is up, you just get a new credit card and do another balance transfer. So with the fee, your effective interest rate just just a hair over 3% instead of 30%.
the problem is while my credit was good (760 at the time) I was nearly maxxed so no one will give me a "new" card and those rates quickly soar to 30% when they realized I am "Unable" to pay it off in one shot so there is nothing I can do about it and the "card" act was activating in 6 months. (this is when they all jacked up the rates just before CARD activated)
this is exactly what happened to me. got a card through my bank $5000 limit 0% intro 9.1% fixed after that.
1.5year later my interest rate went to 32%
never missed a payment (on anything) never late etc.. PERFECT history on 100% of my accounts PERIOD.
I could not transfer BACK to the other accounts as 1 was closed (by me) and the others were all at 27-31% and when you add the 3% to transfer a balance I end up paying MORE than just leaving it.
their reason was "because we can" I kid you not that's a quote.
they know I can't threaten to pay it off and goto another account so they "had me by the balls" so to speak and they knew it.
So I stopped paying and told them to f**k off. ($4600 balance) I don't care what you think of me raising the interest on a 760 credit user perfect history from promised 9.1% to 32% "because you can" is criminal and absolves me of any moral attachment to that balance in my book.
When they called whining about collections and asked me why I said the same reason you gave me.
Because I can. (pa is a non garnishment state their is quite literally almost nothing they can do to me for such a small balance) by the time I own a home the statute will expire on that.
pretty big hit on my credit took me to 680 but I am back up to 720 now.
Still can't get a new low interest account anywhere. I can get approved for more accounts but all 24% or higher etc.. not worth it.
Its a criminal organization on a massive scale. its that simple.
apokalyps2547Jan 24, 2012Buried
Before you go speculating about their motives, it's important to READ THE ARTICLE. They're a non-profit. Practically a charity. If making money was their primary goal, they wouldn't be in this line of work.
sparcerJan 24, 2012Buried
finally a bank that is not greedy, bank of america should learn something from this
InvesteemJan 23, 2012Buried
a great way to celebrate their 375th anniversary.
barackalypseJan 24, 2012Buried
Toxic assets? Did you read the article? This "bank" basically operates as a very low interest rate pawn shop and 90% of people end up purchasing their property back after repaying the loan.
savetheseaJan 24, 2012Buried
"It's a nice distraction"
Actually, it is a nice gesture. Of course it is for PR, but they did not have to do it and in the process, they made a few people happier for a short time.
nerysJan 24, 2012Buried
Its difficult for my fellow americans and most people to comprehend the idea of a bank that is both for profit and not usurious.
the concept is simply so alien to most of us that its incomprehensible.
a bank with morals is virtually an oxymoron.
apokalyps2547Jan 24, 2012Buried
You didn't even make a point to disprove, just idle cynical speculation.
cupanoodlesJan 23, 2012Buried
This is awesome!
cantstopwontstopJan 24, 2012Buried
before you go praising them, it's important to consider that it probably costs them more money to have these debts on file than they're worth all together. (processing, collection, paper work, records, year after year, etc).
willshertz97Jan 23, 2012Buried
Very impressive.
liscombcJan 24, 2012Buried
Very cool, props to them!
nerysJan 24, 2012Buried
I don't want forgiveness. I want USURY CONTROL. simply making my interest rates non usurious would do AMAZING things for my bottom line quality of life and the rate at which I could pay down my debt.
lowering my 30% average interest rates (and I have good credit) to even just 10% would cut my payments in HALF and still allow me to pay them down twice as fast.
whacklyJan 24, 2012Buried
it operates as a pawn shop. folks don't need to make monthly payments. they only need to pay off the balance to get their goods back. as such, there are no collections and the bank already has some small of collateral for the loan (which, in this case, they are returning to the customer free of charge), the sale of which could make up for at least some of the amount owed if some sort of contractual term were reached without payment. subsequently, your original point doesn't seem entirely vald and you may have profited from reading the artice, as apokalyps2547 suggested.
jaguartJan 24, 2012Buried
Liberte Egalite Fraternite
chukaobianozieJan 24, 2012Buried
I really wish American banks would forgive some of my debts. I need a break. lol
ldkronosJan 24, 2012Buried
If you actually do have good credit, then you should have no issues getting credit cards with 0% balance transfer offers. There's tons of these out there. You pay a (typically) 3% fee up front and then the balance is 0% for (typically) 1 year. When the year is up, you just get a new credit card and do another balance transfer. So with the fee, your effective interest rate just just a hair over 3% instead of 30%.
nerysJan 24, 2012Buried
the problem is while my credit was good (760 at the time) I was nearly maxxed so no one will give me a "new" card and those rates quickly soar to 30% when they realized I am "Unable" to pay it off in one shot so there is nothing I can do about it and the "card" act was activating in 6 months. (this is when they all jacked up the rates just before CARD activated)
this is exactly what happened to me. got a card through my bank $5000 limit 0% intro 9.1% fixed after that.
1.5year later my interest rate went to 32%
never missed a payment (on anything) never late etc.. PERFECT history on 100% of my accounts PERIOD.
I could not transfer BACK to the other accounts as 1 was closed (by me) and the others were all at 27-31% and when you add the 3% to transfer a balance I end up paying MORE than just leaving it.
their reason was "because we can" I kid you not that's a quote.
they know I can't threaten to pay it off and goto another account so they "had me by the balls" so to speak and they knew it.
So I stopped paying and told them to f**k off. ($4600 balance) I don't care what you think of me raising the interest on a 760 credit user perfect history from promised 9.1% to 32% "because you can" is criminal and absolves me of any moral attachment to that balance in my book.
When they called whining about collections and asked me why I said the same reason you gave me.
Because I can. (pa is a non garnishment state their is quite literally almost nothing they can do to me for such a small balance) by the time I own a home the statute will expire on that.
pretty big hit on my credit took me to 680 but I am back up to 720 now.
Still can't get a new low interest account anywhere. I can get approved for more accounts but all 24% or higher etc.. not worth it.
Its a criminal organization on a massive scale. its that simple.
Mudlark48Jan 24, 2012Buried
Good for those people.
strongwingsJan 24, 2012Buried
Holy s**t. I'm shocked.
theveivJan 24, 2012Buried
It's just costing them too much trouble and money to keep those debts active.