The Rich Stay Rich....

Discussion in 'Money & Investing' started by wooly, Jan 19, 2009.

  1. wooly

    wooly I am the woolrus

    i know somebody who works in a bank, and they told me a story today that really made me sick to my stomach. (and no names were mentioned to me in the story so no privacy laws were breached!)

    A customer came in asking for help and advice. He'd recently been laid off from his job and already the financial vultures were swooping in saying they were going to take his house. This man had a good credit history, he was only recently struggling with payments (on account of being unemployed) and he also had a child for which he paid child support every single week. He was trying his absolute best to resolve the situation (he even sold his car to keep up the payments, but was still paying payments on THAT, so he was paying for a car he didn't own anymore) and the whole thing was killing him.

    Earlier that day, the staff in the bank had come across an account of another customer, someone who owed €400,000 in arrears. Nevermind the loan itself, that was what he owed on TOP of the loan from missed payments. For some strange reason though, nobody was bothering this man. Nothing was being said and nothing was being repossessed. The explanation for this: Supposedly he "has friends". One of the cashiers actually rang up head office complaining that they were harassing this poor man when certain people owed millions to the bank, but she was just told "that's an unrelated matter and a different situation."

    Now it's well known that Ireland is an extremely corrupt country, but i assume this is happening every where else, and it really does make me sick. If the government and bank owners called in the debts from their 'friends' and 'business associates' the country would probably be in a pretty stable condition compared to what it is now.

    But i guess if you 'know people who know people', that pretty much makes you untouchable....

  2. Mirage

    Mirage Administrator Staff Member V.I.P.

    As long as the bank is privately owned and not claiming insurance for the people they aren't calling loans on then aren't they within their rights to do favors for people? If you owned a bank you should be able to hook up friends if you like, in the same way that if you owned a McDonald's you could give free burgers to your friends. It's your loss and isn't really shady as you make it sound.

    Not sure what you mean by "the rich stay rich" though. In that case, being €400,000 in debt doesn't sound like "rich".. Unless I'm missing something. It doesn't sound like you know the entire story though. That was somewhat confusing.
    pro2A likes this.
  3. Tainted_Glory

    Tainted_Glory Not a Scientologist

    The big bad bank will steal your money and your soul, is that the point you're trying to get across here?
  4. wooly

    wooly I am the woolrus

    Well the guy who owes €400,000 in arrears essentially stays rich. He gets to keep his cars, his hotel, everything. Essentially he's still living the 'rich life' while regular joes are being taken for absolutely everything they have in life for falling behind in fees which are completely trivial in comparison. Despite trying their best and doing everything they can to keep the payments up.

    Are you saying you don't think that's wrong?

    The point is it's an example of a major flaw in the system that i'd call completely unacceptable. It's basically corruption that is ruining people's lives needlessly. How many people's lives are they going to have to repossess to make up the cost of that one person?
    Last edited: Jan 19, 2009
  5. Impact

    Impact Registered Member V.I.P. Lifetime

    As with most things in life, it's all about WHO you know.
  6. icegoat63

    icegoat63 Son of Liberty V.I.P. Lifetime

    This is just my take on it...

    The whole "who ya know" thing has to do more with trust. Mr. 400k in the hole may know someone who knows someone which gets him off the ringer for a little while. But I'd bet dollars to donuts when the All Might Currency starts running thin at the bank they wont hesitate to call him. And quite possibly that may be why they haven't harassed him so much already. Because they know they'll be able to milk the money from his grubby little fingers alot easier than Average Joe who has no money when times call for it.

    Average Joe struggles to make payments which is why Mr. Bank is trying to collect on any assets he can before Average Joe becomes as Non-Liquid as he possibly will. Like they say you cant bleed a rock.

    Now Rich Guy 400k in the hole will have liquid assets worth much greater amounts than Average Joe when the time comes For Mr. Bank to start ringing his bill. Like a game of Risk or Monopoly... you dont cash in on your big cards until towards the end of the game... but you exploit the ever loving hell out of your pawns.

    Which on an Average Joe scale all seems very very unethical and immoral.. but on a business strategy just seems like the normal thing to do.
    Last edited: Jan 19, 2009
  7. Mirage

    Mirage Administrator Staff Member V.I.P.

    Who is being wronged though? The guy who is losing his car, house, etc would still be losing his stuff regardless of whether or not the other guy's loan was called in. So clearly he's not the one who's being wronged.

    The bank however is probably losing money on the 400k not being paid back to them, so if anybody is being "wronged" it would seem that the bank it's the bank. They are the ones losing out by doing the 400k guy a favor, not the other guy. He has no right to complain. He signed papers when he got his loan. The bank doesn't HAVE to take his car and house but they could if he's not paying back his loan.

    They probably figure if he goes bankrupt they will lose everything so they might as well take things back ASAP. If they thought the guy who owed 400k wasn't ever going to pay it back then you can be sure they wouldn't want to risk that loss either.

    The bank isn't going against any contracts here.
  8. Sequoia

    Sequoia Registered Member

    of course people with money always get what they wnat. Money is the root of all evil theres. They always get off easy its a done deal

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