How We Punish People for Being Poor
by
Rebecca Vallas
"This past weekend, I was part of a panel discussion on MSNBC’s Melissa Harris Perry with New York Times reporter Michael Corkery, whose reporting on the rise in subprime auto loans is as horrifying as it is important.
In what seems a reprisal of the predatory practices that led up to the subprime mortgage crisis, low-income individuals are being sold auto loans at twice the actual value of the car, with interest rates as high as 29 percent. They can end up with monthly payments of $500—more than most of the borrowers spend on food in a month, and certainly more than most can realistically afford. Many dealers appear in essence to be setting up low-income borrowers to fail.
Dealers are also making use of a new collection tool called a “starter-interrupter device” that allows them not only to track a borrower’s movements through GPS, but to shut off a car with the tap of a smartphone—which many dealers do even just one or two days after a borrower misses a payment. One Nevada woman describes the terrifying experience of having her car shut off while driving on the freeway. And repossession of their cars is far from the end of the line for many borrowers; they can be chased for months and even years afterward to pay down the remainder of the loan.
Predatory subprime auto loans are just the latest in a long line of policies and practices that make it expensive to be poor—something I saw every day representing low-income clients as a legal aid attorney."
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http://www.commondreams.org/views/2014/10/13/how-we-punish-people-being-poor
= new reply since forum marked as read
Few people want to stand up and proudly say they cannot pay their bills and have ruined their credit to the point where these deals are their only option - even if it's true.
Fewer still want to base their political reputations on supporting those who have not paid their bills, no matter how valid the reasons why. And you don't fall into the 29% bracket without not paying back a creditor or three. It's walking into ads that say "X stands with deadbeats and credit cheats. I stand with hardworking responsible people like you who pay what you owe."
Even if you find that brave noble candidate, they face an electorate like this - in an election historic for minority and youth turnout, doubtless since made far worse. Yes I know income and credit are not the same thing, but somebody at the upper end can buy a useful car cash to avoid the 29%.
So you can only make this kind of thing the focus if you want to bet your election on people who don't vote very much and are very unsympathetic in the minds of those who do. Nice ethics, lousy politics.
To forestall the vitriol (perhaps....one can hope) this post reflects what is true, not what I personally wish were true.
