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Ex-Employees Reveal Bank's Pushy Credit Tactics

Ex-Employees Reveal Bank's Pushy Credit Tactics

Two ex-MBNA / Bank of America employees told CNN all about the shady business of credit sales. They were pressured to prey on customers and push dangerous credit mechanisms like cash advances on people who couldn't afford them. Particularly disturbing is the way they would give access to down payment cash to people trying to buy homes.

It's illegal to lend money to be used for a down payment, but the bank employees would dodge the rules with this spiel: "I cannot give you money to use as a down-payment on a home. However, what I can do is, I can deposit some money into your checking account, and once it's there, the funds are there, it's yours to do with what you please." Then these people would be approved for loans they couldn't afford because it appeared they had a substantial down payment. Watch the video below for full disclosure from the two now guilt-ridden ex-employees.

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cubadog cubadog 8 years
I am so tired of everyone not taking responsiblity for their own mistakes. Yes what the bankers, mortgage companies, and real estate agents did was wrong but at the end of the day the people that put their entire lives on the line to buy a house they knew they couldn't afford should step up and done more research.
sundrops sundrops 8 years
It's not just the banks at fault. All people involved in the sale - the real estate agent, the mortgage broker, anybody who KNOWS they got money off a credit card for the down payment should know to stop the sale, but it's all money in their pockets in the end so mostly nobody does.
SDTransplant SDTransplant 8 years
I'm not surprised at all. I just wish more consumers would take the time to read the fine print before they signed on the dotted line or give their assent. But then again, there's a sucker born every minute.
bellaressa bellaressa 8 years
ilanac13 ilanac13 8 years
that really is shady banking and it's hard to think that it's part of the reason that we're in the crisis that we're in. not only are people paying off their mortgages - or not as the case may be - but they are paying these loans as well and that's just not a good thing for anyone. i kind of wish that people in banks were more honest so that we wouldn't be in this situation that we're in.
RosaDilia RosaDilia 8 years
Terrible, and in the end everyone loses.
Mintie Mintie 8 years
No surprise. Ask any retail sales associate... their store pushes credit too... you wanna know why? Because a store's major profits [somewhere in the 70% range] come from interest charges. They're betting on suckers to overspend. Sickening.
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