Ex-bankers on pushing customers to rack up debt - CNN.com

Ex-bankers on pushing customers to rack up debt: "Colombo said some people even asked about getting a $50,000 cash advance -- usually at zero percent interest -- for a down payment on a house. And although that's illegal, the former employees say they were trained to get around it by saying, '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.'

Spokeswoman Betty Reiss said, "Our call center associates are focused on serving customer financial needs and responding to questions about their accounts."

But Colombo said her performance reviews -- which she provided to CNN -- tell a slightly different story about selling tactics. In one, she is told by supervisors to be more aggressive: "You cannot sell what you don't offer." Another reads, "Understand the importance of selling at the highest possible rate.""

A few things: The first woman was so guilt stricken she only managed to hang on for four years before folding. That's some tenacity. Of course she was told to sell as much as possible. She was in sales. MBNA/BOA are clearly in defense mode when they come out with this howler:

"However, the spokeswoman said the bank "has nothing to gain by extending credit to people who do not have the ability to pay back."

Hilarious. This is so absurd on so many levels I hardly know where to start.

Comments

"the spokeswoman said the bank "has nothing to gain by extending credit to people who do not have the ability to pay back.""

He's right, they don't have anything to gain by putting people into untenable debt. Unfortunately they didn't seem to realize that back when they were doing it.
Duffy said…
Technically correct. However the people in the bank who get $$$ based on the amount of credit extended do not have their interests aligned with the bank.

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