Monday, May 02, 2005

Banks Target Risky Customers

It is a well documented fact that Credit Card companies target risky borrowers because they make up more than 75% of their profits and that is why they refused to allow amendments to the recently passed bankruptcy bill that would protect innocent people in bankruptcy. They know that 50% of bankruptcies are caused by medical problems and another 40% on top of that are caused through no fault of the borrower. A total of 90%. They make their money on people who default, and have no social conscience about it. That is why they seek out these borrowers and push them over the edge so they can profit from it.

The same goes for subprime mortgage loans. Research shows it.Take your unsecured credit card debt and turn it into a secured loan against your home. This puts a basic need at increased risk of loss. Not all subprime loans are predatory, but most are. The subprime lending industry targets low income African Americans who recieve 2.4 times as many subprime loans as low income Caucasions. Hispanics receive twice as many. Subprime lending in Southern states is 1.5 times as the rest of the country. Almost 40% of female borrowers got high cost loans from subprime lenders, as opposed to one-third of men. The elderly are three times as likely to have a high interest subprime loan as someone under 35. Rural areas are often considered high risk, and are targets of subprime lenders as well.

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