Truth in advertising or just stupid people?

[OUHOMER]

I was reading an article on the current housing problems and it made me ponder. Who is at fault here? The lender who knew the buyer could not qualify under a conventional loan and was looking for the quick hit. The buyer who had the preverbal carrot laid out in front of them. Not fully understanding that in a few years the loan will balloon because interest will in crease a few points not realizing how that translated not dollars?.

I hear all of these commercials for loans, cars, etc. Why can’t there be more truth in advertising. I tell ya when I hear a car advertising saying $10.00 down, or reprocessed cars, or drug enforcement cars to the public.. I wonder how they get by with this..

NO MONEY DOWN ON NEW HOMES.
UPSIDE DOWN ON YOUR CAR, NO PROBLEM

We can screw your eyeballs out and put you in your dream car or home today.

I remember back in the day when you could not get a loan for a new car unless you had a sizable down payment. Now you can get a new car for 125% of its value and you have to carry gap insurance..

I guess we are a “I have to have it now society”
But why can we not have tougher Truth in advertising laws. I guess if its all in the fine print that nobody reads and its BUY BEWARE.

Ok rant over

[Okieflyer]

Good rant!

They give you credit, when you have bad credit, and then make it impossible to pay it back. I don't feel sorry for the banks and lenders that are in straights right now at all. If congress wants to help, make it a requirement that all high school kids take a financial course and quit letting lenders loan money to people with bad credit.

Your right people can't wait for anything. Teach them to wait. Oh, but that would hurt the economic stimulas. :rolleyes: I guess we have to pay for the party sometime.:cool:

[OUHOMER]

dont get me started on credit cards.... That can of worms ****es me off more than anything. My son sent in an application on his 18 th birthday... they sent him a card a few months later with a $5000.00 limit @ 21% interest ... I was like WTF, took it a way from him and tore it up. he was ****ed, he was going to buy a new play stations w/ games and some new CD's.

[85Sooner]

Good rant!

They give you credit, when you have bad credit, and then make it impossible to pay it back. I don't feel sorry for the banks and lenders that are in straights right now at all. If congress wants to help, make it a requirement that all high school kids take a financial course and quit letting lenders loan money to people with bad credit.

Your right people can't wait for anything. Teach them to wait. Oh, but that would hurt the economic stimulas. :rolleyes: I guess we have to pay for the party sometime.:cool:


iF SCHOOLS actually took the time to educate our kids on finances then they would recognize the rip off of the taxes they are paying and the gov does not want that. Just go to work and we'll take what we want.................

The most ineffective institution in the United States outside of the UN..... I give to you our Federal (Goobers) Government.

[Hamhock]

Let's don't forget that nobody forces people to sign up for loans they can't afford.

IMO, most of the blame belongs squarely on the shoulder of the consumer.

you're going to tell me you signed up for the biggest purchase of your life (home mortgage) and you didn't understand it? that's not very smart. while i agree the lenders are partially to blame, they were just taking advantage of people willing to sign up for things they knew (or should have known) they couldn't afford. most people understood what the A stands for in ARM, they just chose to ignore it so they could keep up with the jones'. If someone was lied to and can honestly say, " i had no idea my interest rate might change in the future", that's a truth in advertising issue. i don't think that's the case.

as far as credit cards to 18 y/o's go. that's the law. when is it OK for them to start sending credit card solicitations? credit card companies are in the business to make money. it's important that your child understand the danger/responsibility of credit cards occurs long before the first one arrives in the mail.

when something bad happens to you, it isn't always someone else's fault.

[Frozen Sooner]

Exactly how many more disclosures do you want lenders to get people to sign?

Every single loan signed since the passage of the Truth In Lending Act contains the following information printed in bold type no smaller than 10-point in a highlighted box:

Cost of credit disclosed as an annual percentage rate.
Total amount borrowed in dollars.
Total estimated cost of credit in dollars.
Total of payments.

Further, the term of the loan and payments are also clearly disclosed.

Mortgage loans require stacks of disclosures as to the nature of the loan and all costs associated.

Banks and credit unions wouldn't offer 125% auto lending if there wasn't a HUGE market for it. Trust me, we don't like doing it. We do simply because if we don't, our customers will go to someone who will. Nobody is required to carry GAP insurance, and in fact requiring someone to carry it for a charge is illegal in all 50 states. That being said, there are situations where a person financing 125% of a vehicle's value isn't always being an idiot. Cars are depreciating assets, and it's really easy to get upside-down in a hurry. You take a total loss on that thing and you're going to end up financing into something else at above 100% if you don't have a BIG chunk of money to put down.

[LilSooner]

Oklahoma has now passed a law that requires all high school students to take a class about finances. The law just passed this year.

And Mike is right when you close on your house you about eleventy bajillion pages to sign and one is the truth and lending act which goes over everything. Stupid people deserve the stupid things that happen to them.

[StoopTroup]

Stupid people deserve the stupid things that happen to them.
aggies?

:pop:

[OUHOMER]

Dont get me wrong folks, I agree, if you don't know what your getting into don't get into it. But trust me, people are mislead everyday and its their own fault.

The big shinny carrot dangling in front of them i guess is to overwhelming for some to use common sense.


in fact requiring someone to carry it for a charge is illegal in all 50 states.

When my son bought his new truck, he said he was told he had to have it.

in reality i am glad he got it. he would not have been upside down on this deal if he could have waited 1 freakin day for me to go with him to the dealership.

But no, its back to the "I want it now BS"

[Frozen Sooner]

When my son bought his new truck, he said he was told he had to have it.

File a complaint with the insurance commissioner. Requiring the purchase of an insurance product from a specific insurer in connection with a loan is illegal. Lenders can require a property damage policy to protect their interest, but cannot mandate that it be purchased from them. Examine the form he signed to purchase GAP coverage. I'll bet you dollars to donuts it even states somewhere on the form that purchase of GAP is not a condition of granting credit.