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A Big Problem
By karen | February 24, 2008
I believe the credit card companies are aiding and abetting the identity thieves and need to be held accountable… you probably know the most popular customers of credit card companies are those who can only pay their minimum monthly payments. This is where the banks make the most profit. The heart of the banks profits is on the weak. The credit card companies are giving out credit cards at an alarming rate, issuing credit cards to dead people, the physically disabled, children, and animals; hence identity thieves.
Credit card lending is so profitable for these banks that getting someone to take on more debt will yield more money for these companies even with the number of foreclosures and defaults climbing. Bad debt investors purchased $75 billion in one year alone. âBuying âbadâ debtâ companies are one of the fastest growing industries on Wall Street and identity theft has been the number one fastest growing crime for 8 years running.
So what the banks do is encourage anyone who canât afford credit in the first place to buy more credit, putting them into debt, and eventually default. The banks default structure is set up so they have 180 days to accumulate as many interest rates, late fees, and service charges they see fit. Then once closed it is sent over to their insurance provider (the US Government); and eventually sold to debt buyers. When the banks put in their claim of losses the final debt inevitably is so far exaggerated from the original. What they are doing is what the drug dealers and organized crime have been doing for years; except so far for the bank itâs legal.
So what is a bank’s incentive to stop identity thieves from opening up fraudulent credit cards when they are federally insured and claim highly-inflated losses? Their systems are set up so it is better to have criminal activity than legitimate activity.
Did you know the US government spends more on interest from debt that on homeland security, education, and healthcare combined? Our nationâs wealth (paid largely by middle-class America) goes to paying off old debts instead of the basic necessities for its citizens.
Topics: blog home, karen lodrick's blog |
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