She is the symbol of stupidity, ignorance, dishonesty and shamelessness. Stupid: She flipped out a credit card and spent "her money" on lobster meals on Saturday nights. Ignorance: She refused to pay Ken Lay who died long time ago. Dishonesty: She refused to tell us why a credit card company increased her rate to 30%. Things don't happen for no reason. Shamelessness: She refused to pay back the money that she borrowed and spent on name-brand handbags and trips to Las Vegas.
This reminds me of a situation I had with B of A. I had a 50K line of credit with a bank some time back (cant recall the bank) which I used to float some cash for billing cycles and rotate higher rates into (low interest - but I typically PIF every cycle). So this bank was acquired by B of A. Soon thereafter - I received a statement with a egregious "late" payment fee because the payment check posted 1 day after the statement due date (first time ever with this account). So I called to discuss with the bank (now B of A) and the CSR said something to the effect; "Your history shows you only use this account for teaser rates and do not carry balances so there is nothing we can do for you on the "late" fee. I paused, laughed, and said please cancel my account today.... Now I know I am not a favored customer of banks in how I use/manage credit, but tell me they do not target their customers ?!?
Not to defend her, but for this one they may have raised her interest rate for no reason. One of my credit cards did this to me and I hadnt even used the card in a year. I had a zero balance for that entire year too, but they just up and raised it one day saying they had to raise all interest rates to keep their profitability.
Here's how I see it. The banks that own the government changed the lending and bankruptcy laws to favor themselves in 2005. Then they lent like crazy thinking that they have there bases covered. They were wrong. They mispriced risk and it backfired on them. So, like little screaming girls with a boo-boo, they go to the government and get bailouts, free fed money, etc... Up to this point, this woman was paying ON TIME. Then the bank jacks up her rate. She calls the bank, they say no dice because this is "Capitalism" and people should "honor their debts." Well guess what - those banks lost ALL MORAL AUTHORITY. And debt default is a civil action - she knows the consequences of default. She made a business decision. To all the posters here that criticize her: You're the types that probably have big mouths and small wallets - probably not much more wealth than this woman. But guess what? Unlike you, she has CAJONES. And for that, you hate her. Get a life, go wave a teabag. She did something REAL. I'm proud of her.
Heck yes. People like her are the ones that did the American Revolution, not all the chicken asses sitting around clucking "God save the Queen"... if you can pay off debt or never incur it, fantastic... otherwise, if you can't pay it, that's the risk the lender took really... they have their steps they take after you default like try to get you to catch it up, write it off and sell it to collections, etc...... if you can't pay it then your steps are to stall them off, change your address... if you can't change your address try to steer them onto a property lien, maybe inflation will bail you out on that one or go into court and plead ignorance, deep hurt and poverty and hope the judge has seen it all before and doesn't care much for the collections people.... It won't really take seven years to get credit either.. as the time approaches some desperate retailer will give you credit, you can start building your new history while the old one is yet to fall off the records...
You are talking about banking laws that favor the banks? You should go to some other countries and see what will happen if you don't pay your debt. They break your legs if you don't pay back what you borrow!!! If you cannot pay back, they make your sons and grandsons pay!!! That is called fiscal responsibility, which people in this country don't have. In this country people simply walk away from their debt such as house mortgages. This is unimaginable in some countries. In those countries, you never walk away from your debt, there is something called dignity in their lives. Of course, dignity doesn't exist in this country. The collapse of so many banks in the US is directly due to the irresponsible borrowers and a lack of debt enforcement laws (e.g., breaking your legs if you don't pay your debt). If you run a bank, this woman is the last person you want to see. She and her fellowmen/women will ruin your banking business.
Dignity doesn't exist in this country? Why don't you go live in a country where they "break your legs" for defaulting. Isn't that the dignity you crave? The banks did not get into this mess because the population all of a sudden lost its morals. They dug themselves into this hole for mis-pricing risk. Period. They thought that after 2005's tougher BK laws and ability to jack up rates to mafia levels they could lend to anyone with a pulse and be assured of fat profits. They were wrong. But unlike the many that honestly fell on hard times... the banks get free loans via the federal reserve, and they re-lend that at 30%? My heart bleeds for the banks. You gotta do better than that.
You are lying about the banks. It's the unqualified borrowers who put pressure on the banks to lend money. The current president of this country actually represented such an unqualified borrower years ago and sued Citi bank for refusing to lend. After the bailout, the president and his administration continued to put pressure on banks and forced them to lend money, despite the banks' hesitancy.
We have no debtors prison for a reason. She has every right to not pay. The banks should have priced that in with all that lending. The banks have some recourse too. Let it work out and see if we have another credit bubble. We probably will, but not for 70 years or so. Same as the last time this crap happened. My gramps was a kid in the depression. He told me back in the early 90's, never use these credit cards. It has happened before, and it will happen again.
How am I lying about the banks? Please tell me. This topic is about credit cards and lending practices - not mortgages. As for mortgages, kinda of convenient for you to leave out leverage, securitization and derivatives' role in magnifying the losses in mortgages. The mortgage issue is much bigger than the CRE.