by Fred Tolleson

Created on: August 25, 2007

I think the credit industry is out of control! They are like condors circling the dead carcass of a rat, each trying to get into position for a quick swoop down and pick up of the lifeless remains of some poor, stupid animal who made the mistake of trying to find some credit among the rocks of the financial ruins of today.
Do you realize that almost 40% of todays applicants for a car loan are regarded as sub-standard? Isn't that pathetic. Yet, each and everyone of those potential buyers will receive endless offers of credit by organizations who say: "Bad credit, no credit? We don't care, we'll finance you!" Why are these merchants not sanctioned from offering credit to people who clearly have no ability to re-pay? Where is congress of the United States? Where are the legislators of each state in our great country on this issue. The credit industry has many millions earmarked for poli-ticians and they get their share by turning a deaf ear to the call for reform.

The mortgage market is just as bad. When people were applying by the quart, peck and bushel for a mortgage (and being turned down) some entrepreneurs decided to fund that market with high risk money. When the people couldn't repay the high payments the first thing everybody heard was lets give some relief to the mortgage payor on a national basis. Here comes the paid politicians trumpeting the woes of the common folk? I think not - here comes the paid politicians trumpeting the woes of the millionaire investors who are about to lose their "high risk" money.
The other day I opened a credit card offer from a well known source and found that if I called in to activate the card some $250 in charges would be immediately put on the card. Then the $500 limit would be halved by fees, not credit!
The last time we bought a new car, I happened to listen in on the young couple in the next booth who were being hitched up to a 20% contract for 7 years on a car that was clearly inappropriate for a young couple with 2 kids - it was a 2 door hotrod!
So what are we to do about the credit industry? I think we need to turn the tables on these crooks by changing some rules:
1. If you charge 5 points over prime rate for a car contract, you give up the right to repossess the car. Make your money on the front end of the contract and pray they keep making payments. The weapon they have left: continued poor credit rating reports.
2. Credit cards offerings do clearly state what the extra charges are. The new rule would be that you can

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