Because 99% of the time, that’s where the buck stops.
Even if the dealer falsifies income and that gets the a loan approved that shouldn’t be, it’s still the borrower’s responsibility to make sure they can actually pay for what they’re signing.
Personally, I can get approved for loans that are for more than I can reasonably afford, with nothing fishy going on at all. If I take that loan, it’s on me. Why is there any difference here?
Yes, stop the banks from doing fraudulent things. They shouldn’t be ignoring fake loans or encouraging such behavior. Ultimately though, everyone should be responsible for the deals they agree to. Shielding them from that responsibility doesn’t help them out in the long run.
If we assume everyone who agrees to these contracts have had all the same opportunities in life to be educated and make wise decisions.
These practices are obviously predatory and made most heinous by the fact that it’s targeting the most vulnerable of people. Those who are ignorant of finances and uneducated. Those most susceptible to advertising gimmicks and deceit.
Let’s not act like there isn’t an entire financial industry built to exploit the poor and uneducated because it’s simply easy to do.
easier said than done when you are in the sub-prime trenches as a borrower.
if santander had proper loan verification & did not have pay structure that encouraged putting the cars back into customer’s hands that they knew will not be able to pay once it was already repossessed. and repeated it again & again.
Santander is a completely different animal and isn’t representative of all sub prime lenders, there is a special place in hell for these bastards and I’d argue all day with someone that wants to defend those turds, especially during rona lockdown/death by endless boredom
They remind me of these zombie debt scammers, calling people about debts that our out of statue and off your credit. They try to trick people into making any kind of payment to restart the clock so they bring the debt back to life, no regards to the law, ie no call lists etc. Half the time the phone number isn’t even right anymore, but they just keep calling. Many of them have been sued but just move locations/change their name.
This whole conversation reminds me of a vignette from movie I didn’t see.
Darnell Lewis (Hart), the fast-talking and hardworking owner of a small luxury-car-cleaning service, is desperately trying to get a mortgage to buy a home in a better neighborhood so his young daughter doesn’t have to go to a shitty and dangerous school where every morning the kids glumly line up to get jammed through a metal detector. Darnell needs $30,000 for the down payment on the home, but nobody will give him a loan. (“Aren’t you supposed to be a predatory lender? Prey on me! You’re a lion, I’m a gazelle!” he pleads to the bank.)
The more I see this shit repeated over and over again with exact same results blaming the borrower, I actually start to think yes - shelter, give a break to breath, to think, AND educated before letting them out again.
Just something to stop the stupid cycle.
Like rehab. We have that for other illnesses. Why not for that.
This site exists to help people because leasing and financing cars is, at best, confusing (intentionally) and at worst, deceptive. So it leaves me scratching my head how some can turn around and say, oh…these people, arguably of lesser means, should know better?
New Jersey Attorney General Gurbir Grewal’s office said about 82% of Santander’s retail auto loans are considered subprime, and between 2013 and 2015, roughly half of Santander’s subprime auto loan borrowers defaulted.
I think it’s fair to assume that if 50% of Santander’s loans defaulted, there was clearly an intentional effort to acquire these customers and there were mechanisms in place to ensure the pipeline was full.
True, but if you know you can’t afford a car on a $250/week income (using this as an example), but a dealers says they can approve you for a $20k car loan, whose fault is it that you ignore the interest rate and just sign for the car and loan?
EDIT: Let’s assume you are aware your credit is sub-par.
So how does that work? When someone’s credit gets low enough, the gov goes in, reposes all of their stuff to pay off their obligations, forces them into an education program for financial well being, and then after their imposed 6 month financial management class say “ok, you’re allowed to buy a car again”? Meanwhile, they’ve lost their job because the can’t get to it and are in a much worse situation.
Or the gov goes in, subsidizes their payments and says “don’t worry, we know you’re too stupid to read the contract you signed, so we’ll redistribute some wealth to cover your decisions” and bails them out, teaching them that not only is there no consequence to making poor financial decisions, you’re actually rewarded for it?
Ok, those are both rather extreme and hyperbolic examples, but there’s only so much you can do.
I’m all for holding banks that are acting illegally responsible. Make it hurt as much as possible so they’re motivated to not continue to do the same.
When this is your business model(wanting defaults to collect on), something is very wrong and devious. They bank on you defaulting and forever add on fees on top of fees and basically collect on you forever, judgement wage garnishments etc, pretty awful stuff
Whatever the solution would be I’m 200% sure someone will be upset about it. Can’t please everyone.
But
But here lies the problem - I don’t much is being done if anything at all to begin with and bank are not being hurt at all. Just a slap on the wrist for the news headline and life moves one. Those who are supposed to guard are only waiting to for the next gig at the place they are guarding.
So whatever solution you think and isn’t fair that is still doing something.
Even a simple stupid quiz.
Lol, for freaking sake require salesperson have fiduciary to the buyer:) Hah. They can’t even pass that on Wall St:)
