I noticed this article this am, it kinda just jumped out at me, written by Colin Barr for Fortune, and posted on CNNMoney.com. It was the article's title which caught my attention
"Deadbeats hate their banks"
Colin references a study by the Deloitte Center for Financial Services that states;
"Half of bank customers who fell behind on loan payments or otherwise suffered a so-called negative credit event over the past ten years did so for the first time ever."
Let's look at part of that again, out of context, but still fairly powerful in my opinion. That would be the part about
"for the first time ever"
Doesn't sound like a "deadbeat" to me, well what do I know?
So something I've been curious about, and concerned about, is that your past history of timely payments, meaning the last 5, 10, 20, whatever number of years is not important. Please don't forget that this track record of timely payments created profit for the financial institutions that now consider you a
or at least that's the word Colin chose, but I'm going to believe many/most financial institutions agree.
Let's turn to Websters
deadbeat; one who tries to evade paying debts.
Well, once again, in my opinion, for whatever that's worth, we need to somehow remove all of the "first time defaulters," who lost their jobs and cannot find work. Clearly they are not intentionally trying to "evade" paying their debts. Many/most would be more than happy to accept employment and keep their homes, probably in some cases though they would not.
How about those 2 income families where one spouse lost their job and they are looking for help, that being for a financial institution to modify the mortgage. Clearly they are not trying to "evade" paying the debt.
Finally, how about people trying to work with their institutions on a short sale. They're not "evading' anything. They're trying to find a workable solution. Oh ya, you better stop paying the mortgage first.
Once again, haven't all the years of good payment history earned them some consideration?
Now back to Mr. Barr's headline, and posssibly the financial institutions attitude.
In my opinion, there it is again, Mr. Barr owes the "first time defaulters" a big apology, HUGE actually.
They are not, nor should they be referred to as deadbeats!
To the financial institutions who agree with Mr. Barr, not by their words, but by their actions.
These people are your clients, your customers, they deserve your respect. They have generated profits for your institutions, in many cases, for years.
Give them that respect, start now!
The answer to the question, "are first time defaulters deadbeats?" is