Lenders' Ads Still Target Risky Customers, Despite Credit Crunch

Washington Post:

On AOL.com this week, the Internet-based loan company LendingTree offered "Bad credit options" and a $425,000 loan for only $1,376 a month. And Countrywide Financial, the nation's largest mortgage lender, declared, "Bad Credit? Call Today. Refinance or Tap into Your Home's Equity" in an online ad from its Full Spectrum Lending Division.

No-money-down mortgages and subprime loans that cater to people with spotty credit are quickly disappearing as lenders tighten their standards in response to a rise in foreclosures. But you wouldn't know that if you looked at the ads that some banks and loan companies have placed on the Internet and in newspapers, including this one, often right next to the very stories chronicling the meltdown in the mortgage industry. So what's with the mixed messages?

Read the whole story: Washington Post

Comments

[wunderola]

two reasons why the ads are still there:
a) ads were booked in advance ... if the publishers are lucky, they might get paid for them
b) classic bait and switch ... advertise a loan that does not exist, and rope them in for another

[DisgustedTexan]

I hope that annoying, ubiquitos Countrywide TV ad I have grown to hate has been cancelled. They offer to combine your house, car and credit card debt into one loan. What kind of prudent banking is that?

[godlessclif]

"Countrywide is on your side" is no longer the slogan. The new ad will be more honest.
We hired a louse
to steal your house

[Chris]

Texan you are right that probably is not prudent,

Then again if doen right it can save you lots of $$ and also lessen your tax burden.

As with any financial offering you need to know how to use it in order to get the best benefit.

Since when did the banks have to provide only the best solutions. If people want it then the banks will offer it.

Simple.

[godlessclif]

I just got cheated by a bank. I had a debit card that was not supposed to be capable of overdrafting. The ATM machine was supposed to not approve overdrafts. The bank changed that rule without notice.

Faced with $175 in overcharge fees I was told I would be wise to buy overdraft protection and they no longer offered the debit card that did not overdraft. I was told I had good credit and needed a credit card. I closed the account and now carry cash.

I have purposely not mentioned the banks name so Huffy can post this without fear of lawsuit.
Be warned, don't use a check card, use cash.

I know this is not about the continuing predatory lending. But it is all part of letting lawyers for Banking lobbyists write the laws. Shylock is alive and well, and as long as Bank lobbyists bribe our politicians then banking will be no different than legalized prostitution.

[LibsRHilarious]

"I had a debit card that was not supposed to be capable of overdrafting."

Reminds me of the dumb blonde who said, "Overdrawn? How can I be overdrawn? I still have blank checks!"

[godlessclif]

I was told that the transaction would not be approved unless there were funds; if I used it as a debit card. That was true as long as there was no money.
Once I had a $1000 uncleared check it started approving and charging $35 a transaction. The bank piranhas smelled that $1000 and started taking bites.

Joan Baez was right. Why not rob banks, the banks are robbing you. It would be cheaper to use a check cashing store than this bank.

I guess in Merchant of Venice you Republicans
root for Shylock to take Antonio's pound of flesh. The predatory lender is never to blame.
My old S&L would never screw me. That is why Reagan deregulated S&Ls to get rid of them.

[mimsnpips]

13 years ago during a divorce and simultaneous company closing I did a chapter 11. I HAD to learn to use cash. It was very difficult to say the least but now I don't even like using my debit card. Somebody somewhere is cashing in every time I use it. Well that person can count on a little less ATM fees from me!
OH by the way, chapter 11 is the one that the POTUS decided to make harder for us little guys to do. Just us, multi billion $$ companies can still go bankrupt easily.