Lenders Returning to the Lucrative Subprime Market

Lenders Again Dealing Credit to Risky Clients

Annette Alejandro just emerged from bankruptcy and doesn’t have a job, and her car was repossessed last year. Still, after spending her days job hunting, she returns to her apartment in Brooklyn where, in disbelief, she sorts through the piles of credit card and auto loan offers that have come in the mail.

“Even I wouldn’t make a loan to me at this point,” Ms. Alejandro said.

In the depths of the financial crisis, borrowers with tarnished credit like Ms. Alejandro were almost entirely shut out by traditional lenders. It was hard enough for people with stellar credit to get loans.

But as financial institutions recover from the losses on loans made to troubled borrowers, some of the largest lenders to the less than creditworthy, including Capital One and GM Financial, are trying to woo them back, while HSBC and JPMorgan Chase are among those tiptoeing again into subprime lending.

Rest here…



4 Responses to “Lenders Returning to the Lucrative Subprime Market”
  1. see says:

    I filed BK and was discharged in mid 2009. I never stopped getting credit card offers. Nor have I done anything to build up my credit score, which was at one time in the mid 700s. All the offers said you have been pre-approved because of your good credit–ha what credit. My lastest one that I received yesterday was from Capital One. Get this, my BK atty had to threaten a law suit against them for violating the BK stay. CapOne kept on referring the account out to different collection agencies while I was in BK. I would tell the collection agencies that they were violating the stay, wouldn’t hear anything further and then a couple weeks later another collection would call. What a joke. And all the offers for car loans was getting to be real annoying. Also as a warning. I am not sure if they were doing this or not, but I read that places like Chase were offering credit cards to people who were discharged in BK and there was a clause in it that said if they sign up and got accepted for the card that the cardholder had to agree to be responsible for the discharged debt. I never saw one of these so I can’t say for sure that this was happening.

  2. readdocs says:

    Boy, the sudden stop is going to hurt .

  3. They never got out of it, they just suspended it while they were being are still are being bail out !

  4. Katheryn says:

    Returning to..I never knew they got out of it. Why would they not continue a thriving ponzi business making trillions, paying no taxes etc., with our government’s blessing?

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