How It's Used

“As a banker, let me describe what we do wrong when we accept and review an application for a credit card. First, we don’t verify income. The first ‘C’ of credit: Capacity to repay, is completely ignored by the banks, just as it was in when they approved subprime mortgages. Then we ask for ‘household income’ — as if other parties in the household could be held responsible for that debt. They cannot.”

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