Axiom Home Page Forums General Discussion The Water Cooler OT: politics

PM ... if you want to see Banks go nuts ... tell them THEY have to GET the SS#'s in order to do the solicitation ... think it through.

With the crackdown on bankrupcy (which I tend to agree with) CC companies are going to be giving credit to anyone who'll take it. Mr. Bear will likely start getting offers in the mail. Their predatory ways are going to get completely out of control. If we're going to pass legislation that stiffles bankrupcy filings, some has to be equally done to reign in the cc companies as well. Fair is fair, no?

Spiff ... Maybe I am not getting my point across here. SO ... here goes again, so far, we have had complaints. When I decide to complain about something, I think it is incumbent on me to have SOME ideas regarding a solution ...

I have offered two ideas ... Come on people ... quit bitching unless you are going to add some solid ideas !

IF there was a "do not solicate" site in which people could list one's SS#, and become "off limits" to the CC companies ... it would have a HUGE impact.

And PM ... Even as the owner of a car dealership, I can go into our computer and grab pretty much anyone's SS# ... The identify theft of SS#'s is pretty much a non issue.

OK...fine.

1) No credit history = no unsecured credit
2) POOR credit = cap on credit limit (based on income)
3) HORRIBLE credit = no unsecured credit
4) 18 - 21 years old with credit history = cap on credit limit (based on income)
5) interest rates - I don't have enough details to know what these should be capped at, but I DO know that if bankrupcies are going to be curbed, so should/can the interest rates being charged.

Better?

Better ... NOW ... Take those criteria and make them work with the Civil Rights Act of 1964 and the new privacy acts over the past few years. The bank has to PROVE why someone was denied credit. For example, a young black man gets a full scholarship to play basketball at Michigan. He comes from a poor home, and is a GREAT kid. HE gets a part time job, and wants a credit card. HE now gets denied. Bank gets Jesse Jackson doing a press conference.

BTW ... When I said no bitching without solutions, you were supposed to chuckle. this site needs more smilies.

Being my usual pain in the a$$ self, I did some more research .. that $8500 for every person sounded high ... the average adult has a bit over $2000 in credit card debt.

A company called www.usdebtservice.com has stats broken down by age and geography ... They are a for profit company which will help someone with excess credit card debt.

I am using their figures, because they would be inclined, if anything, to OVERSTATE credit card debt levels, as there would be profit for them in doing so.

Under my criteria he wouldn't be denied. He'd have a secured card until he built some sort of credit history.

If the credit card company wants to turn Mr. Jackson's press conference against him they could say that it would be irresponsible of them to offer credit to a young, impressionable man with no prior credit history. They'd in fact be doing him a favor by only offering a secured card.

The fact that he comes from a poor family has no bearing on the issue at all. The fact that he's black has no bearing whatsoever. The fact that he's a good kid is irrelevant. The only thing that matters is the fact that he's only 18 years old, and has no prior credit history.

Perhaps I was not specific enough ... as he was poor, he had nothing with which to secure the card. Assuming he was making $6 per hour ... if he wanted a $500 limit, and was working 12 hours per week, he would need 7 weeks to save enough for this card. If he has $500 in the bank to secure the $500 credit card, it now becomes a debit card.

And, speaking as someone who has spent thousands of $$$$ in getting "up to speed" in the new compliance laws, you may rest assured race is a MAJOR part of this.

By the way, I am not opposed to outlawing credit cards for ANYONE under 18 years old.

Absolutely. I didn't even realize it was currently legal for someone under 18 to have one now!

...and yes, if he has no savings, and no credit history, then he needs a secured credit card...or (appending my own rules, I realize) a VERY low limit. $200-500 MAX.

Am I going to come up with the plan to solve this issue, no...but clearly there are things that can be done. Within 5 minutes I came up with several ideas. All of which are in the broad sense, feasible.