Good Credit Score Not Good Enough Anymore

dbzeag said:
What contract are you signing? They can't change any of that stuff because all of that stuff is detailed in the loan contract you sign. When you pay, how much you pay, and where the money goes that you pay.

Actually if any of that stuff changes, you have a case you can make with the lender that they were in breach of their contract and sue them or the contract is automatically voided.
Click to expand...


I think you're the one that needs to look at the contracts you've signed. It's typical that people just 'sign their life away' because they think it's just the way it is. They're right. Don't be so naive. Look up your contract. A bank that is desperate for solvency has no reason not to. It's happening. no fear mongering.

this is typical verbage.

ACCELERATION; REMEDIES. Upon Borrower's breach of any covenant or agreement of Borrower in this instrument, including, but not limited to, the covenants to pay when due any sums secured by this Instrument, Lender at Lender's option may declare all of the sums secured by this Instrument to be immediately due and payable without further demand and may foreclose this Instrument by judicial proceeding and may invoke any other remedies permitted by applicable law or provided herein. Lender shall be entitled to collect all costs and expenses incurred in pursuing such remedies, including, but not limited to, attorney's fees, costs of documentary evidence, abstracts and title reports.​

& you should feel free to sue the lender. Go out & hire an atty (there's plenty willing to take your $$) to deal with the lenders entire full time legal dept.

more typical verbage:

From time to time, Lender may, at Lender's option, without giving notice to or obtaining the consent of Borrower, Borrower's successors or assigns or of any junior lienholder or guarantors, without liability on Lender's part and notwithstanding Borrower's breach of any covenant or agreement of Borrower in this Instrument, extend the time for payment of said indebtedness or any part thereof, reduce the payments thereon, release anyone liable on any of said indebtedness, accept a renewal note or notes therefor, modify the terms and time of payment of said indebtedness, release from the lien of this Instrument any part of the Property, take or release other or additional security, reconvey any part of the Property, consent to any map or plan of the Property, consent to the granting of any easement, join in any extension or subordination agreement, and agree in writing with Borrower to modify the rate of interest or period of amortization of the Note or change the amount of the monthly installments payable thereunder. Any actions taken by Lender pursuant to the terms of this paragraph 11 shall not affect the obligation of Borrower or Borrower's successors or assigns to pay the sums secured by this Instrument and to observe the covenants of Borrower contained herein, shall not affect the guaranty of any person, corporation, partnership or other entity for payment of the indebtedness secured hereby, and shall not affect the lien or priority of lien hereof on the Property. Borrower shall pay Lender a reasonable service charge, together with such title insurance premiums and attorney's fees as may be incurred at Lender's option, for any such action if taken at Borrower's request.​
 
Amstel said:
I think you're the one that needs to look at the contracts you've signed. It's typical that people just 'sign their life away' because they think it's just the way it is. They're right. Don't be so naive. Look up your contract. A bank that is desperate for solvency has no reason not to. It's happening. no fear mongering.

this is typical verbage.

ACCELERATION; REMEDIES. Upon Borrower's breach of any covenant or agreement of Borrower in this instrument, including, but not limited to, the covenants to pay when due any sums secured by this Instrument, Lender at Lender's option may declare all of the sums secured by this Instrument to be immediately due and payable without further demand and may foreclose this Instrument by judicial proceeding and may invoke any other remedies permitted by applicable law or provided herein. Lender shall be entitled to collect all costs and expenses incurred in pursuing such remedies, including, but not limited to, attorney's fees, costs of documentary evidence, abstracts and title reports.​

& you should feel free to sue the lender. Go out & hire an atty (there's plenty willing to take your $$) to deal with the lenders entire full time legal dept.

more typical verbage:

From time to time, Lender may, at Lender's option, without giving notice to or obtaining the consent of Borrower, Borrower's successors or assigns or of any junior lienholder or guarantors, without liability on Lender's part and notwithstanding Borrower's breach of any covenant or agreement of Borrower in this Instrument, extend the time for payment of said indebtedness or any part thereof, reduce the payments thereon, release anyone liable on any of said indebtedness, accept a renewal note or notes therefor, modify the terms and time of payment of said indebtedness, release from the lien of this Instrument any part of the Property, take or release other or additional security, reconvey any part of the Property, consent to any map or plan of the Property, consent to the granting of any easement, join in any extension or subordination agreement, and agree in writing with Borrower to modify the rate of interest or period of amortization of the Note or change the amount of the monthly installments payable thereunder. Any actions taken by Lender pursuant to the terms of this paragraph 11 shall not affect the obligation of Borrower or Borrower's successors or assigns to pay the sums secured by this Instrument and to observe the covenants of Borrower contained herein, shall not affect the guaranty of any person, corporation, partnership or other entity for payment of the indebtedness secured hereby, and shall not affect the lien or priority of lien hereof on the Property. Borrower shall pay Lender a reasonable service charge, together with such title insurance premiums and attorney's fees as may be incurred at Lender's option, for any such action if taken at Borrower's request.​
Click to expand...
what's in the contract isn't legally binding if it isn't legal. i'm not saying it isn't, i'm just saying that if there are state laws that restrict the ability of the lender to act on the provisions of the contract, then the laws take precedence over what the contract says.
 
Jonny_B said:
what's in the contract isn't legally binding if it isn't legal. i'm not saying it isn't, i'm just saying that if there are state laws that restrict the ability of the lender to act on the provisions of the contract, then the laws take precedence over what the contract says.
Click to expand...

this is true for anything. I'm not sure what this is relative to in this credit discussion.

On a much wider scale, where people thought "i pay on time. if I keep doing what I'm doing I'll be fine, right?" they're having credit card interest rates significantly raised, and limits lowered or accounts closed. & they've made all of their payments on time. It's a business decision on the part of the lender who has a responsibility to shareholders.

if consumers want to pretend it's not happening, they're delusional.
 
Amstel said:
this is due to the 2005 bankruptcy reform act.

now the lenders just sit around & wait. they can jack you on the interest rate & if need be, move you out of your house to get their $ back.

rate went up? it says it may, at our sole discretion, in the contract.
we lowered your limit? it says we can review and adjust your account as we see fit. it says so in the contract.
we closed your account? the contract says we can.
You didn't know? it says in the contract that you are cognizant of what you are signing, and are signing at your own free will. regardless, we sent out a tiny piece of paper next to the porcelain cherub you could buy for $92 in the January 2009 statement that said we were making these changes in July of last year and if you objected them you could call before then to close your account and make 12 final installment payments, plus our closing fee to close your account. We gave you 6 months to call and you didn't call.

you're just a fish in a pond & they're waiting for you to make a mistake so they can jack you. there isn't a damn thing you can do about it.
Click to expand...
EXACTLY!!!!
 
Amstel said:
I think you're the one that needs to look at the contracts you've signed. It's typical that people just 'sign their life away' because they think it's just the way it is. They're right. Don't be so naive. Look up your contract. A bank that is desperate for solvency has no reason not to. It's happening. no fear mongering.

this is typical verbage.

ACCELERATION; REMEDIES. Upon Borrower's breach of any covenant or agreement of Borrower in this instrument, including, but not limited to, the covenants to pay when due any sums secured by this Instrument, Lender at Lender's option may declare all of the sums secured by this Instrument to be immediately due and payable without further demand and may foreclose this Instrument by judicial proceeding and may invoke any other remedies permitted by applicable law or provided herein. Lender shall be entitled to collect all costs and expenses incurred in pursuing such remedies, including, but not limited to, attorney's fees, costs of documentary evidence, abstracts and title reports.​

& you should feel free to sue the lender. Go out & hire an atty (there's plenty willing to take your $$) to deal with the lenders entire full time legal dept.

more typical verbage:

From time to time, Lender may, at Lender's option, without giving notice to or obtaining the consent of Borrower, Borrower's successors or assigns or of any junior lienholder or guarantors, without liability on Lender's part and notwithstanding Borrower's breach of any covenant or agreement of Borrower in this Instrument, extend the time for payment of said indebtedness or any part thereof, reduce the payments thereon, release anyone liable on any of said indebtedness, accept a renewal note or notes therefor, modify the terms and time of payment of said indebtedness, release from the lien of this Instrument any part of the Property, take or release other or additional security, reconvey any part of the Property, consent to any map or plan of the Property, consent to the granting of any easement, join in any extension or subordination agreement, and agree in writing with Borrower to modify the rate of interest or period of amortization of the Note or change the amount of the monthly installments payable thereunder. Any actions taken by Lender pursuant to the terms of this paragraph 11 shall not affect the obligation of Borrower or Borrower's successors or assigns to pay the sums secured by this Instrument and to observe the covenants of Borrower contained herein, shall not affect the guaranty of any person, corporation, partnership or other entity for payment of the indebtedness secured hereby, and shall not affect the lien or priority of lien hereof on the Property. Borrower shall pay Lender a reasonable service charge, together with such title insurance premiums and attorney's fees as may be incurred at Lender's option, for any such action if taken at Borrower's request.​
Click to expand...

Simple solution. Make your fucking payments. Don't give them a reason to use these features of the contract that you should'nt have signed anyway if you can't abide by it. For over a decade I have been paying my credit in a timely fashion and never has anything happened like this. Quite honestly my interest rate went DOWN on my school loan for paying in a timely manner.
 
dbzeag said:
Simple solution. Make your fucking payments. Don't give them a reason to use these features of the contract that you should'nt have signed anyway if you can't abide by it. For over a decade I have been paying my credit in a timely fashion and never has anything happened like this. Quite honestly my interest rate went DOWN on my school loan for paying in a timely manner.
Click to expand...

school loan? pft. the taxpayers are carrying the majority of that burden. It's an election issue, not a credit one.

dbzeag said:
Simple solution. Make your fucking payments. Don't give them a reason to use these features of the contract
Click to expand...

you're intentionally missing, then dodging, the point. people who pay on time get their rates raised and their limits lowered, or accounts closed. The lender's entire portfolio determines how they proceed with your account, as well as your account history. Corporations have shareholders they are accountable to. Your individual account is not solely based on the original terms they gave you, thus the reason they include the terms I posted previously.

http://www.creditcards.com/credit-card-news/lending-crisis-credit-score-cut-limits-1270.php
 
Amstel said:
school loan? pft. the taxpayers are carrying the majority of that burden. It's an election issue, not a credit one.



you're intentionally missing, then dodging, the point. people who pay on time get their rates raised and their limits lowered, or accounts closed. The lender's entire portfolio determines how they proceed with your account, as well as your account history. Corporations have shareholders they are accountable to. Your individual account is not solely based on the original terms they gave you, thus the reason they include the terms I posted previously.

http://www.creditcards.com/credit-card-news/lending-crisis-credit-score-cut-limits-1270.php
Click to expand...

I guess I am ignorant because I have never heard/read/seen a case where if someone was making their payments on time, they were penalized in anyway (either with fees, higher rates, required to pay more or more quickly, etc). And certainly not for "simple" loans like car or school (through private lenders) or single mortgages.
 
Amstel said:
this is true for anything. I'm not sure what this is relative to in this credit discussion.

On a much wider scale, where people thought "i pay on time. if I keep doing what I'm doing I'll be fine, right?" they're having credit card interest rates significantly raised, and limits lowered or accounts closed. & they've made all of their payments on time. It's a business decision on the part of the lender who has a responsibility to shareholders.

if consumers want to pretend it's not happening, they're delusional.
Click to expand...

My credit card just up and increased my limit for the second time in a year, without request on my part. I was also notified of the change in whatever whatever, which states that my rate goes up if I'm late on a payment. I haven't been late or missed a payment on anything since 2002.

If you're a shitbum who overextended your credit and can't make your payments then having your limits reduced and rates increased is nothing more than a consequence of your own irresponsibility, and in my opinion, a self-correction of credit overextension.

Credit isn't a right.
 
dbzeag said:
Simple solution. Make your fucking payments. Don't give them a reason to use these features of the contract that you should'nt have signed anyway if you can't abide by it. For over a decade I have been paying my credit in a timely fashion and never has anything happened like this. Quite honestly my interest rate went DOWN on my school loan for paying in a timely manner.
Click to expand...


TECO just refunded my deposit the other day. f*ck yeah.
 
to RECAP - it's not just people that missed pmnts that then have credit limits lowered, interest rates increased, or accounts closed.


source:
http://www.desmoinesregister.com/ar...Credit-rules-mean-pain-for-industry-consumers
In October, Wells Fargo, the nation's eighth-largest provider of credit cards, announced up to a 3-percentage-point increase in the annual percentage rate of its credit cards for the majority of its credit card holders.

"We did this only after waiting as long as we could in hopes that the overall business conditions improved," McCoy said. "What's important to understand about that is without the APR increase, it would have been really difficult for us to offer credit to as many people as possible."

Bank of America, Citigroup, J.P. Morgan Chase and American Express, the four largest card providers, announced similar interest increases earlier in the year. But unlike other credit card companies, Wells Fargo offers credit cards only to consumers who already have another financial service or product with the company.

McCoy said the rate increase is the only across-the-board change for customers, but the company regularly analyzes credit limits in both good economic times and bad.

Sour economic conditions also mean fewer people will qualify for credit, McCoy said. "You look at unemployment, underemployment, people working fewer hours, income or wages going down, that makes it more difficult to qualify for credit," he said.
Click to expand...
 
zengirl said:
My credit card just up and increased my limit for the second time in a year, without request on my part. I was also notified of the change in whatever whatever, which states that my rate goes up if I'm late on a payment. I haven't been late or missed a payment on anything since 2002.

If you're a shitbum who overextended your credit and can't make your payments then having your limits reduced and rates increased is nothing more than a consequence of your own irresponsibility, and in my opinion, a self-correction of credit overextension.

Credit isn't a right.
Click to expand...

A while back mine also raised my limit, then last month I realized that they've also lowered my interest rate.
 
to Fly:

Right. but closing accounts more often than not, reduces your credit score because you've reduced your ability use credit. When that happens, other lenders see that happen on your credit report & then raise their interest rate, lower their limit and/or close your account because suddenly you look like a higher risk. And then, the customers that have been making their pmnts on time every month - using their credit cards - now can't. They lose the ability to pay off this months utility bill, gasoline expense, etc off next month because out of nowhere, their account or credit limit was cut off.

Further, to those who carry balances and pay on time, a random increase in interest rate (just because they can) means suddenly more $$ out the door with zero additional gain.
 
You must log in or register to reply here.
Top Bottom
Back