How We Banks Try to
Dupe and Trap Clients
NakedTruthBANK.com specializes in full-disclosure banking, revealing the tricks and traps of our industry. Our business strategy is to profit from outsmarting you. Here’s how we do that.

We Lure Clients into Unaffordable Debt

Trolling for profits, we lure you into more debt than is prudent. We are concerned only about your ability to make the monthly payments owed to us, not whether you can simultaneously afford to save for life’s contingencies and your long-run goals. Once we get our hooks into you, it takes a bloodbath to shake loose.


We Promote Debt for Frivolous Purchases

We seduce you into borrowing for more than necessities and investments in your future. For instance, we advertise debt for distant vacations, spectacular weddings, and luxury cars. There are websites like Simple101.org and MrMoneyMustache.com that show middle-class people how to live comfortably within their means, but few people pay them any heed.


We Claim to “Give” Loans but We Don’t

Customers are always grateful for our “giving” them credit and loans, even though we actually rent money and sell debt. Best Buy doesn’t give TVs, so why would people think we "give" loans? Decades of bank industry marketing! 


We Charge Clients up to 50 Times as Much as We Pay for Money

We currently borrow money at about ½ percent interest and then rent it to you at 3 to 25 percent interest per year. That is up to 50 times what we pay for the money—about the mark-up that drug cartels extract from the entire cocaine supply chain. In addition, we have all the income from our great fees.

 
We Are Too Wired to Fail

It’s a hugely profitable business, and we’re too wired to fail. If we mess up big-time, the government bails us out and you pay for it. So heads we win, and tails you lose.


More 

Also see our full-disclosure credit card debt, student loan debt, and auto/elephant debt, all on this website, and make sure to review the no-privacy policy.  

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CC0 2015 To the extent possible under law, Gregg Jackson has waived all copyright and related or neighboring rights to NakedTruthBANK.com. This work was first published from the United States.