Subprime Lending is Soaring Again

My two cents: Must read article here from the NY Times.  Best quote is from Annette Alejandro who just emerged from bankruptcy and is getting piles of credit card and auto loan applications.  She says “Even I wouldn’t make a loan to me at this point.”  Ah but that doesn’t stop the zombie bailed out American financial institutions from getting in on the fun of creating more debt slaves.

Some bullets:

  • Credit card lenders gave out 1.1 million new cards to borrowers with damaged credit in December, up 12.3 percent from the same month a year earlier, according to Equifax’s credit trends report released in March.
  • These borrowers accounted for 23 percent of new auto loans in the fourth quarter of 2011, up from 17 percent in the same period of 2009, Experian, a credit scoring firm, said.
  • Credit card lenders extended $12.5 billion in loans to subprime borrowers last year, up 54.7 percent from 2010.

USA! USA!  Land of the theif, home of the debt slave.

Lenders Again Dealing Credit to Risky Clients

Published: April 10, 2012

Annette Alejandro just emerged from bankruptcy and doesn’t have a job, and her car was repossessed last year. Still, after spending her days job hunting, she returns to her apartment in Brooklyn where, in disbelief, she sorts through the piles of credit card and auto loan offers that have come in the mail.

“Even I wouldn’t make a loan to me at this point,” Ms. Alejandro said.

In the depths of the financial crisis, borrowers with tarnished credit like Ms. Alejandro were almost entirely shut out by traditional lenders. It was hard enough for people with stellar credit to get loans.

Full article here

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