A bank loans scam traps nearly everyone. Would you expect me to go to prison if I charged you hundreds of thousands of dollars for a service that I didn’t perform?
How This Unethical Bank Scam Develops
- Your parents probably never taught you the old-fashioned advice “Neither a lender nor a borrower be.”
- “Everyone else” borrows big, so when you need student loans or perhaps a home mortgage loan, you have no hesitation in going to the nearest lender, and signing your life away without reading the small print.
- If you are thrifty, you will inquire about every lender in your area until at last you decide on which lender will give you the best bargain.
- Let’s say you want to borrow only $10000. Some lenders nowadays will even offer you personal loans for bad credit.
- In olden days banks valued their customers with large savings accounts. Banks would pay, say 2% per year interest for the loan of the money in these savings accounts.
- Banks would then loan out the money at say 4%.
- At the end of the year with a $10000 loan, they would accept the 4% interest ($400) from the borrower.
- Banks would then pay their savings account customer 2% interest ($200) and pocket the change. They would have received $200 for the bank transactions.
- That is probably ethical, though the Bible says not to lend your money on usury, and usury means interest.
- The bank pretends to lend you money which they invent out of thin air.
- The bank “lends” $10000 of funny money to the borrower.
- At the end of the year, the bank accepts $400 interest. They also charge the investor bank fees for the privilege of having a savings account.
- The bank pockets all of the $400 because they only pretended to lend the money.
- I don’t see any way in which this scam could be looked on as ethical. The laws say it is legal for the banks, but not if you try to do it to somebody else.
- Banks no longer like investors. Why pay money to lenders when you can lend imaginary money?
Behaviour of Banks
Have you noticed that bank fees are often higher than the interest rate on your savings account? The banks might as well get a little money out of their dupes. If banks simply closed all savings accounts, people would start to wonder where banks were getting money for the loans.
If you had to work 50 hours a week (including commuting time) to repay what you discovered was a purely imaginary loan, would you be pleased? How keen would you be to continue to be a slave being paid only imaginary money for all your work?
Over 50% of Americans go from payday loans to more of the same, with no savings. Those who do put savings in the bank get them stolen by the bank through bank fees.
Why are lenders so keen to offer no credit check loans and unsecured loans bad credit? Well, it doesn’t matter much to them if you default on a loan because the loan is imaginary money.
If you have made even one repayment before you default on the loan, they have made a profit. Banks then sell the bad debt to a debt collector for about 4% of the value of the remaining loan. They can browbeat enough bad debtors into paying to make a profit.
Banks are not quite as pleased to give you a debt consolidation loan if you have a credit-card debt with them. After all, if you are paying 30% interest on your credit card loan and go down to a 4% consolidation loan, that is a big loss.
There are only two reasons for giving you a loan of this type.
- Your debts are all with other lenders, and
- You’ll probably head straight back into credit card debt again instead of cutting up your card with scissors. That means that you’ll then be the victim of a low-interest bank loans scam and a high interest one.