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Confessions Of A Subprime Lender - Crook Writes A Book

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I wonder if Wall Street will get there own version on derivatives?

For derivatives, have you read Traders, Guns and Money?

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**UK scam**

There was a scam in the UK which was even worse perpetarted by the worst sort of unscrupulous secondary lenders. AFAIK it's now been stopped by recent changes to the Consumer Credit Act (CCA)

It works because Under the Consumer Credit Act, when a borrower deafults a lender could (until recently) use the "Rule of 78", not only to claim the amount origianlly lent plus any arrears but also a large precentage of the interest the lender wopuild have got if the loan had continued throughout its entire term

So all a lender needed to find are a few not so bright homewoners with no income but lots of equity. Lend them less than £25K (so it's covered by the CCA) for say 15 years. Then repossess when the borrower defaults (as they are guaranteed to do), thereby claiming the interest for all 15 years. A loan of £25K at the sort of rates these lenders charge could easily net £100K. All within the first year. That's for each loan. Guaranteed!

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Guest DissipatedYouthIsValuable
**UK scam**

There was a scam in the UK which was even worse perpetarted by the worst sort of unscrupulous secondary lenders. AFAIK it's now been stopped by recent changes to the Consumer Credit Act (CCA)

It works because Under the Consumer Credit Act, when a borrower deafults a lender could (until recently) use the "Rule of 78", not only to claim the amount origianlly lent plus any arrears but also a large precentage of the interest the lender wopuild have got if the loan had continued throughout its entire term

So all a lender needed to find are a few not so bright homewoners with no income but lots of equity. Lend them less than £25K (so it's covered by the CCA) for say 15 years. Then repossess when the borrower defaults (as they are guaranteed to do), thereby claiming the interest for all 15 years. A loan of £25K at the sort of rates these lenders charge could easily net £100K. All within the first year. That's for each loan. Guaranteed!

Now this is interesting and despicable news.

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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