Banks Mine Data and Woo Troubled Borrowers

Brenda Jerez hardly seems like the kind of person lenders would fight over.

Three years ago, she became ill with cancer and ran up $50,000 on her credit cards after she was forced to leave her accounting job. She filed for bankruptcy protection last year.

For months after she emerged from insolvency last fall, 6 to 10 new credit card and auto loan offers arrived every week that specifically mentioned her bankruptcy and, despite her poor credit history, dangled a range of seemingly too-good-to-be-true financing options.

“Good news! You are approved for both Visa and MasterCard ”” that’s right, 2 platinum credit cards!” read one buoyant letter sent this spring to Ms. Jerez, offering a $10,000 credit limit if only she returned a $35 processing fee with her application.

Read it all.

Posted in * Economics, Politics, Economy, Personal Finance, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

2 comments on “Banks Mine Data and Woo Troubled Borrowers

  1. Sherri2 says:

    I am not, thankfully, in this woman’s former financial position, but I am continually bombarded by credit card offers. I have only one credit card (by choice) and the bank with which I have it continually raises my credit limit. I have never asked them to do so, they just send me periodic announcements that they have done so. I have never used any of the added limit, but I wonder why they do this – if I were to use up to the present limit, I would find it impossible to pay off. Is that the *goal*?

  2. tgs says:

    Just another example of why we should not be bailing out Wall Street.