OT - Bank of America Credit

Posted by David Smith on March 3, 2007, 1:11 pm

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> When the poor credit risk consumer defaults on the CC bill and has no

> assets to speak of, who do you think foots the bill? You do. I don't

> think it's really all that hard to understand for the "non mentally

> challenged" person.

> When companies actively pursue poor risk consumers, some of the debt

> those consumers build is going to be non-recoverable. The rest of the

> CC company's consumers are going to pay for that. I think that is

> wrong. That should come from company profits and ultimately the

> shareholders.

> Is that plain enough for you?

Very plain except it doesn't make any sense. It is already coming out of
profits. The product is priced with the target demographics in mind.

Posted by HeyBub on March 3, 2007, 2:24 pm

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Steve Scott wrote:

> When the poor credit risk consumer defaults on the CC bill and has no

> assets to speak of, who do you think foots the bill? You do. I don't

> think it's really all that hard to understand for the "non mentally

> challenged" person.

> When companies actively pursue poor risk consumers, some of the debt

> those consumers build is going to be non-recoverable. The rest of the

> CC company's consumers are going to pay for that. I think that is

> wrong. That should come from company profits and ultimately the

> shareholders.

> Is that plain enough for you?

Static thinking. Business is dynamic.

If the profit dimishes, the owners or investors will make the necessary
changes in policy to regain the optimum position. In the case where there
are too many defaults, the company may try to raise the interest rate on the
remaining customers. When the customers move their business to a more
rate-friendly competitor, the company will take other steps.

If the company is large enough, one of those steps will be to influence
legislation.

Posted by SpammersDie on March 1, 2007, 8:53 pm

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> On Thu, 01 Mar 2007 14:34:36 -0600, Andrew DeFaria

>>Steve Scott wrote:

>>> Should you and other CC holders be penalized when CC companies

>>> actively solicit those with poor credit? That is what happens all to

>>> often.

>>When two parties enter into an agreement by means of a contract (as is

>>the case here) those parties and no other parties should be responsible

>>- don't you agree?

> As a matter of fact I do.

>>> FWIW, I don't think you or other cardholders should be made to pay the

>>> burden, but neither do I think companies should be rewarded for

>>> soliciting business form those most likely to NOT be able to pay their

>>> debts.

>>Not being "likely to be able to pay their debts" is no excuse! People

>>need to be responsible for their own actions! And we need to stop making

>>excuses for people who refused to own up to their own obligations.

>>Unless it can be shown that a) the CC company violated a law, in which

>>case the CC company should bear the responsibility or b) the consumer

>>was mentally unfit (i.e. mentally challenged (AKA a retard)) the debt

>>should be honored and not thrust upon other innocent people.

> Agreed. I'm pleased to see you agree with me that the companies, not

> their cardholders, should suffer when they actively solicit

> individuals whose past credit histories show them to be a poor risk

> and those individuals default on the payments.

Having failed in their duty to their shareholders by extending the credit in
the first place, the companies still have a duty to their shareholders to
transfer as much of the suffering as possible onto the deliquent debtor.

Posted by Steve Scott on March 1, 2007, 9:31 pm

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Agreed. And the companies themselves should suffer the consequences
for the remaining non-recoverable debt. Not the rest of their
consumers.

In any other business it would be considered highly irresponsible to
solicit business from those who can not or will not pay their bills.

>> Agreed. I'm pleased to see you agree with me that the companies, not

>> their cardholders, should suffer when they actively solicit

>> individuals whose past credit histories show them to be a poor risk

>> and those individuals default on the payments.

>Having failed in their duty to their shareholders by extending the credit in

>the first place, the companies still have a duty to their shareholders to

>transfer as much of the suffering as possible onto the deliquent debtor.

--
Brain: The apparatus with which we
think that we think.

Posted by Han on March 1, 2007, 9:32 pm

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> In any other business it would be considered highly irresponsible to

> solicit business from those who can not or will not pay their bills.

You mean that credit card comapnies and banks are "responsible"? That's
laughable ...

--
Best regards
Han
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