Financial Crisis

"Of mankind we may say in general they are fickle, hypocritical, and greedy of gain."--Niccolo Machiavelli.

It is extremely apparent that lenders are only in this business –consumer credit lending– for the money and do not care that they are not fulfilling their federal-given duties to the public by assisting them in their daily lives, and instead are denying them the ability to use consumer credit due their unfortunate faulty credit scores. If only lenders could reach out further to investigate the actual financial situation of a given consumer – be it students or credit newcomers – aside from their damning credit score, they may see that the particular said credit score is the haunting skeleton in the closet that overshadows the true day-to-day capabilities and responsibilities of citizens and their true financial duties. By not giving fair estimation to all possible consumers, it is further exacerbating the financial crisis in the country.

According to the Federal Reserve and the FDIC, it is common for lenders to make a game of their work to compete for a wider range of customers by using the low-cost credit scoring system (FDIC, n.d.). In other words, they see how many rich customers they can find with perfect scores to make themselves look great, and it is little to no cost risk for them since credit scores are a cheap method of evaluation (no manpower needed, just computers). The only problem with that is the wealthy do not need the help of lenders as do the middle and lower class people of America. Why would lenders seek out wealthy clients when the country is positively swarming in abundance with financially struggling families begging, pleading, and praying for a second chance to receive help for themselves and their families? It seems quite ridiculous when you think about it, and even more so proves that lenders do not care about everyone, but instead only those who benefit them in their place of employment...