naked capitalism

moslof says:

The fact that this video has been deemed noteworthy indicates that social mood and therefore the markets are have topped again. We have come full circle from the Sixties when young people borrowed money, not to buy things, just to pay it back and establish good credit. And that was after thirty years of economic expansion!

Bob Blake says:

So it begins . . . at long and dear last. Perhaps the bread and circus sleep walking is coming to an end.

… iam pridem, ex quo suffragia nulli uendimus, effudit curas; nam qui dabat olim imperium, fasces, legiones, omnia, nunc se continet atque duas tantum res anxius optat, panem et circenses.
(Juvenal, Satire 10.77–81)

Glenn says:

She’s absolutely right. Taxpayers bailed out the banks and how did they repay everyone? By jacking up interests rates.

g4nz0 says:

Video is blocked where I am at. What someone summarize, as I can’t tell what the heck this post is about.

Paul says:

Great video post. I was expecting something more vulgar, and I’m pleasantly surprised.

Good arguments and she has a case. It may not be legal where she lives, but the morality of her position is unmistakeable.

jo says:

I believe that this reaction to unbearable credit card debt occurs frequently and without an organizing movement. It is surprising that banks don’t care that by raising rates to 30+% monthly they will force larger numbers of defaults. They must assume that because they are now too big to fail, if credit card debtors will not pay the Government will bail them account again, again and again.

Lighthouse says:

Lets do more than talk. Lets really get this going. If you support her and you have BOA accounts, go to the bank today and close the accounts. Make sure you tell them you are doing this in support of the Debtors Revolt. It is not illegal, it is your money. If enough people do it, by this time next week BOA will be on the ropes and we will have the banksters on the run.

Revolutions do not require guns, the only require the will to act. There is so much we can do besides whine and this is very easy. Just move your money to another bank. Once we are done with BOA, we can start moving down the list.

bob says:

I agree with the sentiment, not the reasoning.

She doesn’t say what her original rate was. She would pay off her 15% credit card, but not 30%.

They are both usury.

I am sorry, but this is just proof of how limp the populace is.

Michael says:

The lady is right. She was playing by the rules and due to the fact she was laid off and her direct deposit(my assumption) stopped then her risk rating was raised. BofA figured if they made the credit terms uncomfortable that she would pay off the debt and not leave them holding the bag. BofA is really only hastening the charge off process and the future meaninglessness of a FICO score. I could be wrong and these tactics actually work for them or they wouldn’t do it, right?

anarkst says:

Well, that’s makes it thirty-one Americans who get it now.

Steve says:

to free-at-last …

what did the cc companies do, other than harass you by phone and mail? did they sue, put a lien on your house, try to garnish your wasges. i find it hard to believe they just walked away after a couple of years. also, what happened to your credit score?

Richie says:

How do we know the woman in video’s statements are true? I mean, it all sounds good but how are we to know whether or not she’s just “acting” to make a valid point?

Peter T says:

I want to see BofA bankcrupt for the things they’ve done. Still, I wonder if the boycott by an able payer is such a threat to them: they own congress and the legal system and can wring her out if she has something, even if takes a few years. I put my hope more in the people who can NOT pay all of their bills and have to choose which payment to make. I hope they decide to cut their credit card with the interest over 25% without paying it back.

eh says:

Blah blah. Banks offer conditions, which if you read them state these can change. She should have just shopped around for a better offer — which should not have been hard at all to find — and transferred her balance, which usually gets you an even better deal.

TheRabit says:

No doubt the u.s. government will bring out armed forces against its own people. I’m native american, My people know the lengths evil greedy white people will go to get what they want. in this case instead of general custer, its the banking and credit industry.

ernie says:

this is inspirational

perhaps banks should have acknowledged that they are still alive ONLY because of the taxpayer, and thus actually decided to work for society’s interests, instead of the interest of their employees bonus pool solely…

tricoteuse says:

Intriguing as this call to arms may be, debtor revolt would be more effective if it drew on collective bargaining principles. We don’t have a labor force anymore, but we have Mongolian hordes of debt peons, and collectively they have life-and-death power over the financial sector. Imagine a simple five-step plan to motivate some actual reform – or at least make lots of shit hit great big fans worldwide.

1. Publicize the program: collective consumer debt renegotiation with targeted banks. If renegotiation fails, enrolled borrowers will repudiate their entire debt on a specified deadline.

2. Enroll borrowers, who list the amount of their debts and their lenders.

3. Identify the first target bank, using criteria that can include:
• The bank’s financial vulnerability
• Enrolled borrowers’ aggregate debt
• The bank profile or notoriety.
Screen lenders from among FDIC problem banks, bailout beneficiaries, or abusive non-bank lenders.

4. Choose a percentage chargeoff to demand. Ideally, the reduction demanded in enrolled borrowers’ debts would not bankrupt the institution, but public repudiation of the enrollees’ entire debt would make the institution insolvent.

5. Announce the first target bank and date: on the specified date, the bank shall forgive X percent of enrollees’ debt or the enrollees will repudiate their entire debt and allow it to proceed to collection, at which point interest will no longer accrue.

6. …

7. Profit! (No, actually, loss.) The immediate likely result would be disproportionate escalation by banks including government repression and attempts to criminalize the bargaining process. But the target bank is likely to be destabilized anyway, and the threat to other vulnerable banks could trigger another nice credit event. Consumers will have asserted their power to dictate writeoffs and liquidate banks even as government policy tries to defer recognition of losses. Real restructuring could begin with consumers at the table.

Sorry to run on.

Markie says:

Ten years ago, after a lifetime of flawless credit, I “walked away” from a credit card after the issuer hiked my interest rate to 29.99. I tried for months to get the issuer to explain the hike. I tried for months to get them to listen to my point of view. It was all futile.

Those who glibly say that customers can simply “read the agreement” (which banks change constantly and often in sneaky ways) or just “shop around for a better deal” aren’t seeing the entire picture. If your bank has been reasonable in its dealings with you, you can just consider yourself fortunate.

Now that banks have accepted billions from unwilling taxpayers to cover their own screwups, maltreatment of their customers is even less excusable.

I applaud Ann Minch for speaking out. I hope her rebellion inspires many more abused customers of the new “federal-hybrid” banks.

s coombs says:

take a look at citi group video….now as response to this one…just click on this video

LHB says:

At this point is doesn’t make much difference who’s “fault” it is. Life has become impossible for a growing number of people who are indebted for whatever reason, and most are choosing to take their lumps (a big hit to their credit report, the likelihood of going to court and having a judgement leveled, etc.) in order to fight for a chance to live without being heavily and hopelessly indebted to private creditors for the rest of their natural lives. This is not a matter of contract law in the narrow sense, it’s a matter of more and more Americans feeling that large financial institutions have violated their part of the social contract. They’re fighting for their economic lives through whatever means are at their disposal. This woman’s predicament is minor compared to many, but her response to it came at the right moment, and may have wider reaching reprecussions than most people are willing to consider. I certainly hope so.

Nanamurphy says:

I stopped paying ALL Credit Cards about 6 years ago because of them raising the interest rates despite I was never late on any of my payments. I am retired and living on Social Security Retirement Benefits, and a well earned Pension – both of which can NOT be attached by any creditor. I own my own home and since it is my primary residence, State Law also exempts my home from having any Liens placed against it. I closed out my Savings Account and only kept my Checking Acct. where my SS checks and Pension Checks are directly desposited – both are also unattachable. I sent all my Bill Collectors a letter explaining I am “Judgement Proof” and also to stop calling me (which they had to do). They went ahead and placed Judgements against me (which are useless) and these will expire in another 3 years. In the meantime, I have plenty of money to pay cash for anything I need or want – drive a 3 year old car that is paid for – and I am debt free!!!!!! It’s great to be retired – LOL. These Banks need to realize WE ARE IN CHARGE – they need us alot more than we need them.

Paula at CreditLaw.com says:

I understand that this woman is upset, but it boggles my mind how she is willing to sacrifice her personal financial future “for the cause.” Why doesn’t she just vote with her feet?

We’ve posted a response to her video. It highlights some simple steps that she can take to resolve the situation and walk away. In essence giving BofA the finger.

Thanks.