July 2007 News | QuickLoans.com.au

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Quick Loans News

Banks' Irresponsible Lending Rates As Entrapment

Monday July 16, 2007

The pity of the economic boom has been the lack of due diligence by banks in lending money to people who can ill afford a small increase in interest rates ("Bankruptcy soars as city feasts on easy credit", July 14-15). Their risk management has been nothing less than appalling, with low-doc and no-doc loans. Knowingly lending to an individual or a couple who cannot afford a 1 per cent increase in rates should be considered entrapment. After all, they sell the property on default and then saddle ...

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