[Closed] A Danbury Mint change in billing.

Did You Notice the US Congress Bail Out? That's all I'm going to say. B.S.

Absolutely agree!

TOTALLY Agree!!

Banks want to irresponsibly lend out money to WHOEVER with WHATEVER income and when people by the thousands default what do they (the banks) do? Cry poverty and ask for the Government to play Santa Claus! Next is the Whole bail out of AIG, Fannie Mae, Freddie Mac, and more! THEY created this mess, let THEM suffer not the tax payers whom it will eventually will hit.

I simply have them charge my CC each month. I guess you can't please everyone.

Not everyone has a neat bill paying system where they can set up their advance payments such as this, so I can understand some wanting a reminder each month. It works nicely for those people. For me, I simply have them bill my credit card each month automatically. That works very nicely for me. But these two billing methods don't work for everyone. Like I said, you can't please everyone all the time. Not a biggie IMO.

Regarding banks....

Before the mid 1990's, banks, credit union, and finance companies used NET income to calculate a potential borrowers payment ratio (P/R, also known as Debt to income ratio).

Now here is the deal folks, NET income is what you, me, all of us, bring home after taxes and deductions are taken from our weekly, bi-weekly, or monthly income. In other words.....your NET pay is what you really make to pay all your bills with, buy your groceries, gas, entertainment, and misc. spending with.

Makes sense....right? Of course it does!

But, in the early to mid 1990's, the government started mandating to banks that, they should use GROSS income to calculate potential borrowers P/R, so as to allow MORE PEOPLE to qualify for loans that were otherwise being denied.

Now folks, GROSS income is BEFORE taxes and other deductions are taken from your check! So, if a wage earner were making $50,000 GROSS, it naturally gave the borrower more of a chance to qualify for a loan (i.e for a car or mortgage), than if the bank used NET income of $35,000.

So, do you see what was wrong here? Even a 1st grader in school would be able to figure out that, this type of arithmatic had disaster written all over it.

Using GROSS income (instead of NET), the potential borrower is, put into a loan that he/she DOES NOT have the ability to pay back!!!

Why did the government want banks to use GROSS income rather than NET income? Because they alleged that using NET income instead of GROSS income was preventing many people from being able to get a loan for a home or car.

To be fair here, I also want to put some of the blame on the borrowers, who are (for lack of a better word) stupid.....because they signed for, and agreed to take loans that they should have known that they couldn't afford to pay back. But, the lure of getting into a home, or new car, prevented them from making a wise financial decision....and not borrow money that they probably should have realized they couldn't pay back.

Bottom line everyone is this....
It is the government that got us into this banking mess with bad mortgages!!! They said that banks were not allowing working individuals to qualify for loans, due to the banks using NET income.

End result....the mess we have today. Now who is to blame? The banks or the goverment?

Well Bob, it is a biggie for me, because the additional cost for mailing those monthly statements to customers, is going to be passed on to all of us....in the form of another increase in the cost of the cars.

So, like said, once again the good pay for the sins of the bad! I worked in the credit/loan business for 31 years, and I can tell you first hand that, those that don't pay their bills on time, causes finanancail institutions to have to charge higher interest etc., for the money they lend out.

Yes David I did.

I also noticed that, once again the Democrats want to agree to the bail out, and TAX all of us to pay for it. While the Republicans say that, the American people should not have to take on this burden, and that Wall Street should be responsible.

Who do you agree with?

This is why I will vote McCain on November 4th!

Phil....you are incorrect with your thinking....

Banks wanted to make responsible loans for mortgages. But, the government mandated to them that, they must make loans to be people using GROSS income instead of NET income.....so as to allow more people to qualify. The government also claimed that banks were discriminating against minorities, and that they (the banks) must come up with loan programs that will allow lower-income people to get mortgage loans.

Who's to blame here? If I were you, I'd be looking at some of your elected officials!!!

All THREE

And the hell with this bailout nonsense. In spite of the "doomsday" warning from Fed and SecTreasury, we will survive. Financial institutions are not going to stop lending money. It's just now that when they go to lend peoples hard earned money, they will be "assured" that those they lent it to, can "afford" TO PAY IT BACK. Isn't that a novel concept!

I agree, but

I did the right thing, worked hard, paid my bills on time. Put 20% of my income in my 401k, paid for my three Daughters college. Now I watch my retirement lose 20% and maybe lose everything. I do not know the answers and I share everyones anger, but I fear that if we do not restore confidence some way, more than the tax payer will lose. We all could lose everything, our very way of life.

VERY WELL WRITTEN............

so easy to understand.

And leader of the CHARGE..........

Barney Frank, sad to say from my state, MA.

Just a month ago (or so) in the Columbus Dispatch was an article taken from some bureaucratic watch dog thinktank and statistical gatherer stating that although blacks and minorities have gained ground in home ownerership - still lag behind those nasty white nazis....(they didnt really say nazis)

in the 90's George references, in order for a bank to move (expand, acquire, build branches ATM's etc) Society Bank (now Key) was forced to commit $50 million to local (Cleveland) innercity neighborhoods for home mortgages etc or risk being picketed and have complaints filed with the comptroller of currency...

we can all agree there were weaknesses in the system...but this was strong armed black mail if there ever was

and i'll agree with you- i - trying to be responsible made a payment PRIOR to receiving my new billing notice by sending in two payments using a coupon for a required payment and specifically stating the other payment was for a payment due - that i hadnt received a notice for...

i realized it was screwed up when i got a late notice - i called and was told the other payment pre-paid the other car...it was corrected - but now hold my breath on future payments