3 ms·

It is likely untrue, but anecdotal. That said, how are subprime loans still legal??

by themartorana 12y ago

crsmithdev 12y ago
They'll remain legal as long as they're at all profitable and that profit exceeds any fines or losses in lawsuits.
dogecoinbase 12y ago
It is likely untrue... Why do you believe this?
- themartorana 12y ago
  Because for someone to believe the ability to stall a moving car is ok is for them to believe the passengers are potential acceptable losses. More likely is someone who has had a remote start block activated in the past (keeps you from starting the car) likely experienced engine failure while the car was running and associates it with past experiences. This has no bearing on any argument for or against this practice, in any way. If it was found to be true that the engine could be remotely stalled while moving, it would be horrifying.
  - Iftheshoefits 12y ago
    > Because for someone to believe the ability to stall a moving car is ok is for them to believe the passengers are potential acceptable losses. This isn't as outlandish a thought as you imply, especially when it comes to vehicles and the sales practices around them. Also, someone could believe it's okay to stall a car at any time without even considering the ramifications in the case that it's moving. All they need to be thinking is "deadbeat owes me money, brick his car." Any questions of timing, context, ethics or other considerations needn't enter into the picture.
    - sk5t 12y ago
      Yes, it _is_ an outlandish thought. The folks who design and manufacture auto parts of this type have to think about this stuff, or else they'd be quickly sued into oblivion.
  - dogecoinbase 12y ago
    Because for someone to believe the ability to stall a moving car is ok is for them to believe the passengers are potential acceptable losses. No, it only requires them to fail to test that their device cannot be used to shut off an operating car. Stop and think -- what criteria define an "operating car"? It's not "the car is on" since it's entirely possible to stall out while moving. It's not "the car isn't moving" since that doesn't cover the stoplight situation. It would be trivially easy to code a device that would not permit the car to be restarted even if the car stopped in a dangerous situation.
joshAg 12y ago
I assume you're talking about the subprime home mortgage debacle? Because the issue wasn't that the loans were subprime, so much as it was the massive amounts of institutional fraud across many layers of the mortgage business that enabled unqualified people to get loans (or loans larger than they qualified for). IOW, subprime loans were the murder weapon, not the murderer. EDIT: BTW, a subprime loan is just a loan that comes with terms that aren't as good as they could be due to the applicant having some sort of issue in their application (eg, no credit history, a bankruptcy, lots of missed payments, no collateral, lots of other debt, etc.).
- themartorana 12y ago
  You are right, of course, but (IMHO) it sure would be nice to have consumer protections against such weapons.
  - deleted 12y ago
    [deleted]
nkozyra 12y ago
Why would a subprime loan be illegal? The price meets the risk of the loan. It's a wholly logical agreement that provides potential benefit for both parties.

It is likely untrue, but anecdotal. That said, how are subprime loans still legal??

crsmithdev 12y ago

They'll remain legal as long as they're at all profitable and that profit exceeds any fines or losses in lawsuits.

dogecoinbase 12y ago

It is likely untrue... Why do you believe this?

themartorana 12y ago
Because for someone to believe the ability to stall a moving car is ok is for them to believe the passengers are potential acceptable losses. More likely is someone who has had a remote start block activated in the past (keeps you from starting the car) likely experienced engine failure while the car was running and associates it with past experiences. This has no bearing on any argument for or against this practice, in any way. If it was found to be true that the engine could be remotely stalled while moving, it would be horrifying.
- Iftheshoefits 12y ago
  > Because for someone to believe the ability to stall a moving car is ok is for them to believe the passengers are potential acceptable losses. This isn't as outlandish a thought as you imply, especially when it comes to vehicles and the sales practices around them. Also, someone could believe it's okay to stall a car at any time without even considering the ramifications in the case that it's moving. All they need to be thinking is "deadbeat owes me money, brick his car." Any questions of timing, context, ethics or other considerations needn't enter into the picture.
  - sk5t 12y ago
    Yes, it _is_ an outlandish thought. The folks who design and manufacture auto parts of this type have to think about this stuff, or else they'd be quickly sued into oblivion.
- dogecoinbase 12y ago
  Because for someone to believe the ability to stall a moving car is ok is for them to believe the passengers are potential acceptable losses. No, it only requires them to fail to test that their device cannot be used to shut off an operating car. Stop and think -- what criteria define an "operating car"? It's not "the car is on" since it's entirely possible to stall out while moving. It's not "the car isn't moving" since that doesn't cover the stoplight situation. It would be trivially easy to code a device that would not permit the car to be restarted even if the car stopped in a dangerous situation.

joshAg 12y ago

I assume you're talking about the subprime home mortgage debacle? Because the issue wasn't that the loans were subprime, so much as it was the massive amounts of institutional fraud across many layers of the mortgage business that enabled unqualified people to get loans (or loans larger than they qualified for). IOW, subprime loans were the murder weapon, not the murderer. EDIT: BTW, a subprime loan is just a loan that comes with terms that aren't as good as they could be due to the applicant having some sort of issue in their application (eg, no credit history, a bankruptcy, lots of missed payments, no collateral, lots of other debt, etc.).

themartorana 12y ago
You are right, of course, but (IMHO) it sure would be nice to have consumer protections against such weapons.
- deleted 12y ago
  [deleted]

nkozyra 12y ago

Why would a subprime loan be illegal? The price meets the risk of the loan. It's a wholly logical agreement that provides potential benefit for both parties.