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Capital One to Change Credit Policies for Underbanked Consumers in New York
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Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
6/18/2014 | 6:12:57 PM
re: Capital One to Change Credit Policies for Underbanked Consumers in New York
While I agree with your overall point, I don't think it applies in this case. The New York State investigation found that people were getting denied for an account because they had literally overdrawn ONCE, or bounced a check ONCE. That to me is excessive punishment that doesn't serve anyone's interests. The customers are hurt by not having access to the financial system, and the bank is hurt by cutting off a bug number of potential customers.

As an aside, there's a lot of movement I'm seeing in the industry in trying to find alternative ways to determine credit-worthiness beyond the traditional credit bureaus and reporting agencies. I think this indicates that the balance has been tilted towards denying customers new products and services for minor transgressions. Otherwise people wouldn't be trying to find other ways to determine customers' risk.
Byurcan
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Byurcan,
User Rank: Author
6/17/2014 | 1:50:02 PM
re: Capital One to Change Credit Policies for Underbanked Consumers in New York
I completely agree with everything you said. Unfortunately, too many people aren't rational enough to understand this.
AllThingsUnderbanked
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AllThingsUnderbanked,
User Rank: Apprentice
6/16/2014 | 8:10:29 PM
re: Capital One to Change Credit Policies for Underbanked Consumers in New York
We live in a remarkable society where we're at liberty to freely make personal choices, and to use products and services at our own discretion to better our lives. But what of the consequences and outcomes of those choices? Suddenly, if things don't turn out the way we would have liked our society goes crying off to some element of the government to fix it. Bought more house than you knew you could afford? No worries, the government will severely fine the mortgage banker who gave you the loan which you happily accepted including the second mortgage which you used to pay for the new car or vacation. Lost your job because someone else was more productive or worked harder, longer than you? No worries, the government will fine the employer for discrimination of some sort. Obese or suffering from heart disease or diabetes because you eat at McDonalds four or five times a week, smoke like a fiend and drink far more than you know you should? No worries, the government has a health care plan to pay for your emergent and long term care at the expense of others who make healthier choices. Somewhere along the line we have institutionalized a sense of eternal entitlement to the 'do over' with a rapidly increasing dis-equality between personal value choices and personal responsibility. "It's someone else's fault" has become the default mentality, an unfortunate mindset that also inevitably surrenders our rights to make free choices in the future.


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