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A relative of mine started cashing those credit card Conv. Checks they also send in the mail and for a while used the money from the checks to pay the minimum payment. Eventually they allowed her to collect up to $40K in funds from these checks before they cut her off. She got angry stopped paying and went bankrupt. Chapter 7, all debts were cancelled. She had spent the money on trips, clothes and general expenses, by the time she declared bankrupcy the money from the conv checks was gone.
Is this stealing? Is this no better than robbing a bank? What do you think?
If they allowed her to collect up to $40K in funds, before they cut her off, then I do not feel a bit sorry for them. Maybe one day they will learn a lesson.
Back to your relative, if she made out all those checks without an intend to pay back, then yes - it was a big time stealing! Filing for Chapter7 is not a deserved punishment. She should go to jail for a checks fraud.
Present laws and laughable punishments make it easy for people to enjoy borrowed money.
I had a relative that had exceptional credit but got in over his head. He was working a full time job and 2 part time jobs to pay back the debt. He had a 06 Mustang with a 72 month note and a 09 Toyota Corrolawith a 60 month note he was paying on. Both cars were purchased new. He financed trips and purchased items to make his rental look nice. While working the 3 jobs he could make his payments and was even paying down the debt. After a while he decided that he couldn't live like that anymore, took one last trip to New York City and stayed in the Waldorf Astoria. He maxed out all of his cards, flew back home and declared bankrupsi. He did park the Mustang in his garage to protect it. When the repo guy came to get it he opened the garage for him and handed over the keys. He did the same with the Toyota.
All that fun and for the next 10 years he gets to remember the good times.
Offering credit is a risk. To cover that risk credit issuers charge a high interest rate. Not all deals will work out. Some fall apart. It could be considered stealing, especially when someone does a strategic move such as a last trip before declaring bankrupsi. It happens though. remember that the person playing that game gets to live in the cash world for a long long time, usually at least 10 years. Credit will be available just at a very high rate.
I don't have much sympathy for the banks. They send me those checks every month even though I don't want them. I consider it an ID theft risk and have to waste my time shredding them. It's just a circle jerk of con artists ripping each other off and billing me a documentation fee.
A relative of mine started cashing those credit card Conv. Checks they also send in the mail and for a while used the money from the checks to pay the minimum payment. Eventually they allowed her to collect up to $40K in funds from these checks before they cut her off. She got angry stopped paying and went bankrupt. Chapter 7, all debts were cancelled. She had spent the money on trips, clothes and general expenses, by the time she declared bankrupcy the money from the conv checks was gone.
Is this stealing? Is this no better than robbing a bank? What do you think?
Mmm ... sounds like something Enron executives would have done. I say she's CEO material.
She could get a job working for the government, even serve in congress. Can't her grandchildren just assume the debt and pay it off over time? He rmistake was not borrowing enough. Had she borrowed, say 4 billion dollars, she could have bene declared too big to fail and she would have been bailed out.
I am shocked! Maybe I do not understand fully how she was awarded such funds.
Easy.....
The bank that allowed her to cash the checks thought they'd get it back plus 30% interest.
Kind of like a 'derivative' banks do for each other.....
They lost.
By saying They, I really mean We, as in you and me because they get to write off the loss AND collect the debt from us.
See, easy.....
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