3 ms·
> I encourage everyone to do it - so this way reputable lenders are supposed to call you when they're trying to open an account in your name. Reputable lender
by YeBanKo 6y ago
> I encourage everyone to do it - so this way reputable lenders are supposed to call you when they're trying to open an account in your name.
Reputable lender is something like an honest car salesman. Often consumers deal with middlemen and brokers that aren’t bearing the cost of fraudulent transaction.
Isn’t it what partially what caused financial crisis of 2008? Loans were given to people with no income and one, two or even three existing mortgages. Everyone’s incentive was to earn the commission and sell it further misrepresenting low grade bonds as high grade.
- EGreg 6y agoWell, I think the fair consumer reporting act (FCRA) criminalizes the act of opening an account in someone else's name without their permission and having done absolutely no due diligence. Maybe it's not criminal but you wouldn't be able to actually get them to pay the debt later. Am I wrong?
- YeBanKo 6y agoI am not sure what penalties are for such negligence, but in any case such fraud happens and a burden to correct or monitor is on the consumer.