Lately, you've been sounding very negative. There's alway two sides to every story. If you take a moment and think this through...I'm sure you'll come to the same conclusion I did. Banks are concerned about the ever escalating incidences of credit card fraud.
These loan modification companies you speak of are frauds. What? You don't believe me? Okay...I can prove it. Ask any homeowner that needs a loan modification if they can give one of these so called legitimate companies their credit card for services. See...I told ya! If they were legit, they'd be able to accept credit cards. They are frauds... and banks don't do business with frauds. And neither should you!
Let that be a lesson to you. Never doubt the bank!
All I can say is.......Thank God they're on my team.
goldnmypoc Dud?
Joined: 20 Mar 2009
Posts: 12
Location: Charleston, SC
And I'll go a step beyond. Fraud defined: deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage..............it sounds like banks to me. The breach of confidence is that they are over their heads and had to be stress tested after needing bail-outs by the federal government, sole purpose is profit with unfair practices, and are you sure you want to talk about dishonest advantages? And now they can prohibit businesses from doing business blocking merchant accounts for no good reason. They hold the country in ransom as we are all slaves to our own country in the interest alone of the national deficit. They have made it where you can not live in our society without a bank account. You don't believe me? Then try living without a bank account.
Randall Batman
Joined: 19 Oct 2007
Posts: 720
Location: Orange County, California
Ask any homeowner that needs a loan modification if they can give one of these so called legitimate companies their credit card for services. See...I told ya! If they were legit, they'd be able to accept credit cards.
There is a humorous side to your post: Logic dictates that if your first statement is correct (Mod companies cannot accept cards), then your last statement means that all Loan Mod companies that can accept Credit Cards are legit!
Let me assure you there are many Attorney firms and Loan Modification companies that accept credit cards.
Accepting credit cards still does not mean that any particular company has a successful track record.
_________________ Randall
goldnmypoc Dud?
Joined: 20 Mar 2009
Posts: 12
Location: Charleston, SC
If they were legit, they'd be able to accept credit cards.
Yes indeed humor is needed in this day and time. I was finding the same humorous side in the posting above me saying that all loan mod companies are frauds. But you really have to hand it to the banks that control the world and the fact that they will control an industry by not allowing them merchant credit card services.
Randall... According to Blake Campbell, the number of loan modification companies that will be allowed to take credit cards is dropping like a stone. It seems that the banks have found a way to systematically choke off a loan mod firm's ability to conduct business.
Apparently in Arizona, according to James Wexler, a CEO of a loan modification company there that is completing 100 mods a month who contacted Wells Fargo after his account was closed for no reason, Wells Fargo no longer accepts merchant accounts if you do loan modifications. He had 0 complaints and 0 charge-backs. Blake verified his story after review of his account.
Also, once the bank puts you on the black list, you won't be able to get another bank on board. This practice seems very wrong to me. It is discrimination against a type of business.
Hand it to them? Looky here...They're simply protecting the public. Much the same way they protect you from overextending yourself when they cut off your credit lines needed for you to continue buisness.
It would be a irresponsible for them to allow you to take that kind of risk. The fact that you've never missed a payment, and have a 750+ fico is not a determining factor. The fact is the economy is in a slowdown.
If you were allowed to try...and you failed...you would most certainly damage your credit.
Cutting off credit card processesing for mod companies falls under protecting the public. The ones that are cut off are frauds! The bank would never do that to a legitimate company, unless the bank determined they were a fraud. Which of course they are because the banks offer loan mods for free.
Since when do the banks care about the public's best interests? Do you really feel the banks have the public's best interests in mind? Let me answer that for you. No! They don't! If you or someone you loved, god forbid, was in the hospital in a coma, do you think the bank or your creditors would send you a get well soon card? Of course they wouldn't. But you would probably have dozens of voice mails on your cell phone from one of the bank's collectors calling you and asking where your payment is.
The banks are trying to cut out the modification companies because if they do that, they won't have to give the homeowner a deal that is good as a reputable modification negotiator could get the homeowner. Why would the bank want to give someone who doesn't qualify for a government subsidized modification a 3% interest rate that a negotiator negotiated for the homeowner, when the bank can cut out the negotiator and give the homeowner 3.5% or 4.0%? I ask this question because banks do modify loans for people who don't qualify for Obama's plan. The fact of the matter is, they would rather have the homeowner pay more if they can get away with it.
So instead of the homeowner having 3 options for help, ie.. Doing it themselves, which is usually an exercise in futility; getting help from a HUD approved counseling agency; which let's face it, is like having a public defender represent someone in a legal case; or hiring a qualified professional; and admit it; not all loan modification companies are the boogie man; the homeowner is the one that loses out because they are left to fend for themselves or get inadequate help from a government backed agency? Ever go to the DMV? How bright are those people?
C'mon...Whose going to buy that argument? You sound like a right wing nut! This is a free modfication service, paid for by tax payers.
It's being administered by trustworthy government, non-profits, banks and lenders alike. You have to admit, it's not like they're capitalists trying to make a buck from a crisis. These entities have endangered...oops...
"in danger" homeowners best interests at heart. Give em a chance...
they've already modified a staggering number of home loans.
Once they prove themselves competent with this minor crisis, I'm supporting nationalized health care, H.R. 1728 and increased taxes across the board!
Folks...the reason a bank cancels a merchant account is predominantly due to consumer charge-backs. If a customer pays $1000 or $2000 or more on a credit card, then for WHATEVER reason doesn't want to pay for the service, they can request a refund. In many cases, loan mod companies that have already performed a great deal of work, or are frauds, still will refute the refund. BAM! Customer files a complain with the credit card company and its a chargeback. More than 1 or 2% for any company triggers a review, and usually an increase in discount rate or cancellation. Its the way the merchant processing system works. If the industry has a high degree of charge-backs, most major merchant processors won't handle it. Its a business decision by and large, probably not a consipiracy against loan mod companies by Wells Fargo...they have much, much bigger problems.
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