1 - Common Sense
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No Credit History? No Problem.
No Credit History? No Problem. Lenders Are Looking at Your Phone Data
Financial institutions, overcoming some initial trepidation about privacy, are increasingly gauging consumers’ creditworthiness by using phone-company data on mobile calling patterns and locations.The practice is tantalizing for lenders because it could help them reach some of the 2 billion people who don’t have bank accounts. On the other hand, some of the phone data could open up the risk of being used to discriminate against potential borrowers.
Phone carriers and banks have gained confidence in using mobile data for lending after seeing startups show preliminary success with the method in the past few years. Selling such data could become a more than $1 billion-a-year business for U.S. phone companies over the next decade, according to Crone Consulting LLC.Fair Isaac Corp., whose FICO scores are the world’s most-used credit ratings, partnered up last month with startups Lenddo and EFL Global Ltd. to use mobile-phone information to help facilitate loans for small businesses and individuals in India and Russia.
Last week, startup Juvo announced it’s working with Liberty Global Plc’s Cable & Wireless Communications to help with credit scoring using cellphone data in 15 Caribbean markets.And Equifax Inc., the credit-score company, has started using utility and telecommunications data in Latin America over the past two years. The number of calls and text messages a potential borrower in Latin America receives can help predict a consumer’s credit risk, said Robin Moriarty, chief marketing officer at Equifax Latin America.“It turns out, the more economically active you are, the more people want to call you,” Moriarty said. “That level of activity, that level of usage is what’s really most predictive.”
“We hold these truths to be self-evident,” former vice president Biden said during a campaign event in Texas on Monday. "All men and women created by — you know, you know, the thing.”
- tennyson
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Re: No Credit History? No Problem.
Don't expect the new administration to crack down on the banks.
"Do not confuse motion and progress, A rocking horse keeps moving but does not make any progress"
- Just Fred
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Re: No Credit History? No Problem.
Tennyson is right. When you load up on Wall Streeters and Banksters in your future administration, you are telling the working and middle class to suck it up and go pound sand. The R-Tribe will be in complete control next year, so sit down and shut up, and if anything goes wrong it's not our fault. Somewhere out there is a liberal to blame.
- Goose
- Cogito ergo sum
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Re: No Credit History? No Problem.
Yea, I wouldn't look for borrowers to get any protections for the next four years
We live in a time in which decent and otherwise sensible people are surrendering too easily to the hectoring of morons or extremists.
- TheLagerLad
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Re: No Credit History? No Problem.
Goose wrote:
Yea, I wouldn't look for borrowers to get any protections for the next four years
Here's a topic for debate:
Is it the responsibility for the government to "protect" borrowers from their own decisions?
A borrower and a lender meet. They come to an agreement on the terms and conditions of a loan. The lender holds up their end of the bargain by providing money and the borrower defaults on paying back the loan. What types of protections should be provided by the government to the borrower?
Now let's stipulate some basic assumptions that I think should be afforded to borrowers:
1 - I think there should be a cap on interest rates
2 - Contract language should be clear and understandable to the lay person
3 - Lenders should abide by all existing regulations and the fair credit reporting act
4 - Bill collectors should not be able to unreasonably harass, threaten, or stalk borrowers.
Beyond that, what other protections should be in place?
I think you're going to see a lot of different United States of America over the next three, four, or eight years. - President Donald J. Trump
- tennyson
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Re: No Credit History? No Problem.
Yea, I wouldn't look for borrowers to get any protections for the next four years
Here's a topic for debate:
Is it the responsibility for the government to "protect" borrowers from their own decisions?
A borrower and a lender meet. They come to an agreement on the terms and conditions of a loan. The lender holds up their end of the bargain by providing money and the borrower defaults on paying back the loan. What types of protections should be provided by the government to the borrower?
Now let's stipulate some basic assumptions that I think should be afforded to borrowers:
1 - I think there should be a cap on interest rates
2 - Contract language should be clear and understandable to the lay person
3 - Lenders should abide by all existing regulations and the fair credit reporting act
4 - Bill collectors should not be able to unreasonably harass, threaten, or stalk borrowers.
Beyond that, what other protections should be in place?
I would argue that (given what happened in 2008) that is IS the governments responsibility to make sure lenders make responsible loans in the sense that we NEVER have a financial collapse again that requires a total bailout of much of the big financial institutions because of those same shaky financial dealings.
BTW, the Trump Presidency is talking about rolling back or repealing some of the safeguards that Dodd-Frank legislation provided us with.
Last edited by tennyson (11/29/2016 9:38 am)
"Do not confuse motion and progress, A rocking horse keeps moving but does not make any progress"
- TheLagerLad
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Re: No Credit History? No Problem.
Yea, I wouldn't look for borrowers to get any protections for the next four years
Here's a topic for debate:
Is it the responsibility for the government to "protect" borrowers from their own decisions?
A borrower and a lender meet. They come to an agreement on the terms and conditions of a loan. The lender holds up their end of the bargain by providing money and the borrower defaults on paying back the loan. What types of protections should be provided by the government to the borrower?
Now let's stipulate some basic assumptions that I think should be afforded to borrowers:
1 - I think there should be a cap on interest rates
2 - Contract language should be clear and understandable to the lay person
3 - Lenders should abide by all existing regulations and the fair credit reporting act
4 - Bill collectors should not be able to unreasonably harass, threaten, or stalk borrowers.
Beyond that, what other protections should be in place?
I would argue that (given what happened in 2008) that is IS the governments responsibility to make sure lenders make responsible loans in the sense that we NEVER have a financial collapse again that requires a total bailout of much of the big financial institutions because of those same shaky financial dealings.
BTW, the Trump Presidency is talking about rolling back or repealing some of the safeguards that Dodd-Frank legislation provided us with.
Hold on....let's remember the cause of the economic collapse in 2008.
Banks were taking mortgage loans, for houses that were over-valued, bundling them, and selling them as derivative bonds.
The housing collapse and the fallout from it, at the most basic level, happened for the four following reasons:
1 - Unscrupulous banks doing unscrupulous things
2 - Poor government oversight of the banks (and Fannie/Freddie)
3 - Shady mortgage lenders promising riches to unsuspecting borrowers
4 - Borrowers making stupid decisions
I was in York at the time and I can't tell you how many of my neighbors ended up taking to much equity out of their houses and ended upside down. I was tempted as well at the time, but took a more conservative approach and while I did refinance in 2006, I took only enough out to pay off some bills and get some new furniture my wife was nagging me for.
And for what it's worth, I think a lot of what the Obama administration did in an effort to help people stay in their homes was admirable and necessary. But I also think people need to take on the responsibility themselves not to repeat the same dumb mistakes that got them into trouble in the first place.
I think you're going to see a lot of different United States of America over the next three, four, or eight years. - President Donald J. Trump
- tennyson
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Re: No Credit History? No Problem.
Here's a topic for debate:
Is it the responsibility for the government to "protect" borrowers from their own decisions?
A borrower and a lender meet. They come to an agreement on the terms and conditions of a loan. The lender holds up their end of the bargain by providing money and the borrower defaults on paying back the loan. What types of protections should be provided by the government to the borrower?
Now let's stipulate some basic assumptions that I think should be afforded to borrowers:
1 - I think there should be a cap on interest rates
2 - Contract language should be clear and understandable to the lay person
3 - Lenders should abide by all existing regulations and the fair credit reporting act
4 - Bill collectors should not be able to unreasonably harass, threaten, or stalk borrowers.
Beyond that, what other protections should be in place?
I would argue that (given what happened in 2008) that is IS the governments responsibility to make sure lenders make responsible loans in the sense that we NEVER have a financial collapse again that requires a total bailout of much of the big financial institutions because of those same shaky financial dealings.
BTW, the Trump Presidency is talking about rolling back or repealing some of the safeguards that Dodd-Frank legislation provided us with.Hold on....let's remember the cause of the economic collapse in 2008.
Banks were taking mortgage loans, for houses that were over-valued, bundling them, and selling them as derivative bonds.
The housing collapse and the fallout from it, at the most basic level, happened for the four following reasons:
1 - Unscrupulous banks doing unscrupulous things
2 - Poor government oversight of the banks (and Fannie/Freddie)
3 - Shady mortgage lenders promising riches to unsuspecting borrowers
4 - Borrowers making stupid decisions
I was in York at the time and I can't tell you how many of my neighbors ended up taking to much equity out of their houses and ended upside down. I was tempted as well at the time, but took a more conservative approach and while I did refinance in 2006, I took only enough out to pay off some bills and get some new furniture my wife was nagging me for.
And for what it's worth, I think a lot of what the Obama administration did in an effort to help people stay in their homes was admirable and necessary. But I also think people need to take on the responsibility themselves not to repeat the same dumb mistakes that got them into trouble in the first place.
And I believe a lot of it could have been prevented by tighter banking regulations. That is all I am saying. When we bought our first house we needed 20% down. Things like that alone would have prevented a lot of the 2008 collapse. I understand it would have kept a lot of people out of owning their own home for awhile but vs what happened that might be a good thing. I also understand that the 2008 crisis was more than JUST the housing debacle as banks have ventured more and more away from being just traditional lending institutions and perhaps those ties need to be unbundled to different entities themselves.
"Do not confuse motion and progress, A rocking horse keeps moving but does not make any progress"
- Goose
- Cogito ergo sum
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Re: No Credit History? No Problem.
The poor decisions by lenders and borrowers have the power to affect me.
That is why it's the government's business
We live in a time in which decent and otherwise sensible people are surrendering too easily to the hectoring of morons or extremists.
- TheLagerLad
- Exchange Beer Snob
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Re: No Credit History? No Problem.
The poor decisions by lenders and borrowers have the power to affect me.
That is why it's the government's business
What affect does it have on you if we make the government the backstop for every poor financial decision an individual makes?
And by creating that backstop does it encourage reckless behavior by borrowers?
I think you're going to see a lot of different United States of America over the next three, four, or eight years. - President Donald J. Trump