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"Quick" <dhorwitz@NOSPAMcisco.com> wrote in message
news:1083006231.47526@sj-nntpcache-3...
> Elector wrote:
> > "Quick" <dhorwitz@NOSPAMcisco.com> wrote in message
> > news:1082997199.762674@sj-nntpcache-5...
> > <snip>
> >
> > No I work for a public agency. We have lawyers on staff. However
many
> > times when you encounter the situation you are inquiring about
> > (Sliding fee schedules) the law firms make the money on actual
work
> > performed and not in lending or giving credit. This is clearly not
> > the same as a credit card issuer or store.
>
> True, but I think some analogies can be drawn. You negotiate an
> hourly wage for representation. Some time into the case you lose
> your job and can't pay the agreed upon rate...
>
[See 1 Below]
> I'm not sure that raising the rate on default is that much of an
issue.
> If you can't make the original payments it doesn't matter that the
> subsequent rate is increased. I suspect it's a very small
percentage
> that miss or forget a few payments and then cannot handle the
> increased rate. This usually occurs long after people have dug
> themselves past the debt load they can afford. I also think it's
> become more of a practice for people to live on the edge without
> a safety net. Many don't factor in considerations like "what if I
> get laid off in the near future?", "what if I incur significant
medical
> expenses?", etc., when deciding to incur significant debt. I believe
> this is part of fiscal responsibility. Rarely is it the case that
the
> problem debt was originally incurred due to a necessity.
>
[See 2 Below]
> I see the rate jack as a deterrent and yes, also a stab at getting
> whats left when it looks like there is a problem. On the other
> hand, many CC issuers will work with you with plans like closing
> your account and letting you pay at a reduced rate over a longer
> period to time. No, it may not completely save your credit rating
> but can save your home and/or declaring bankruptcy.
>
> >
> > Many credit card issuers depend solely on the credit reporting
agency
> > and the information supplied at time of request from the consumer.
> > When that same customer falls on hard times the card and stores
now
> > have this addendum on the credit agreement that states they can
raise
> > your interest rate up very high if you fail to make payments to
them
> > or your other creditors. However I don't see where this is not
> > motivated by nothing but greed.
>
> See above. It's in the agreement and there is no excuse for
> not *considering* it prior to incuring a debt.
>
[See 2 Below]
<snip>
> > Which I was told I could do. It is the credit issuers that are
> > really causing these defaults and its due to greed. Take into
> > consideration that checking and savings accounts are giving 1-4%
for
> > interest on your money but they are charging 23-35% for credit
cards.
> > Makes you wonder huh?
>
> About what? That a business is making a profit? Do you feel that
> businesses should have a profit cap imposed upon them? Yes, there
> are usury(sp?) laws but this is out in the open and apparently
legal.
> Yes, some of the marketing and teasers are aimed at the uninformed
> but McDonalds does some of the same right?
>
[See 3 below]
> You seem to be equating the lenders to drug dealers offering the
> "first ones are free" to get the unsuspecting hooked on credit.
>
> -Quick
>
>
[1] If you were to make an agreement for fees paid for services this
is not the same as fees paid for extension of credit and as such is
not for this discussion. If you lets say pay your attorney or your
contractor and then run out of money. When the money ends the service
of legal advice and your home being built ends.
[2] In a consumer retail contract for credit the conditions are
spelled out. If you default the costs to you for collection are borne
by you. They can ask for the cards back, they can sue you etc. etc.
etc. all which are clearly spelled out. So there are no surprises.
Bankruptcy is a means for an end. Many bankruptcy judges comment when
they issue a relief judgment that when creditor make noises they
usually get no sympathy from those judges. In stead they get you
caused your own problems via the continued extension of credit, giving
a higher limit, making deals for their payments etc. It is borne by
many a release. The creditors also like to try and get any money they
can by any means. Look at the poor family man that had hardship and
tries to work things out and stay afloat the card company then goes on
a collection frenzy. Your other creditors join in because they see you
heading down the river, add more grief on the guy or gal that is
trying to pay the debt and wham now they are in Bankruptcy Chapter 7.
And the cycle starts all over again.
[3] If its ok to have the banks and lenders making these huge profits
then why is it not ok to give higher interest rates for the use of the
depositors money? The federal reserve lowered interest rates and yet
banks and credit lenders are raising these very same rates because of
greed. And yeah it would be like a drug dealer since they give you a
taste then give you more and more until your at the edge and
wham..Look what happens. In the cell phone department the costs
associated in defaults is mainly in fraud and theft loses. If you owe
a $40 cell phone invoice for a gazillion free minutes plus long
distance included the choice is to simply turn off the phone and lose
$40 and not $40,000.00 from a customer. And how many customers owe
huge amounts?
Scott I noticed your reply and in many cases folks in or out of a
bankruptcy are also good candidates for credit since they cannot use
that protection for many a years and the credit lenders know it. So I
don't feel sorry for them.
Elector
). Finally there are those
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