g Opinion Article on Sub-sub-su b prime lenders
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