04-30-2012 07:39 PM
The CFPB's mission is to protect consumers from financial harm.
Before rushing to grab privileged documents and punish unintentional "discrimination," the CFPB should figure out who's siphoning money unfairly from consumers—rather than just assuming that banks and those nasty "shadow banks" are the greedy culprits. But the CFPB seems to have tripped on the first step, so I'll help.
Example: an unusual, intensively advertised credit card program appeals to customers with no credit or bad credit, and approves 70% of applicants. These people send in $95 to get $225 in credit. Over half those who borrow default and are charged off. The others pay hefty additional fees and interest.
Interesting opinion article on First Premier, Credit One, etc type credit card lenders
04-30-2012 09:26 PM
It seems like the author feels people who default made out best. Last year I was talking to someone who left Florida when the housing market corrected. He could afford the place but defaulted because property values were too low. For him, paying the mortgage didn't make sense if there was no chance of making a profit down the road. I was pretty surprised at how nonchalant he was about the whole thing.