I'm a private weather industry marketing executive specializing in the strategic approach to SaaS in established and emerging markets. 

Banking 101

I make a few claims in life; understanding the banking industry is not one of those claims. I know what I need to know when it comes to personal and business loans, mortgages and interest but that’s where I draw the line. Start talking about the Fed and prime rates vs. daily lending rates, how one effects the other and so on; well, that’s when I just don’t care and stop listening. I’ll never get it because I don’t care enough to learn. Something tells me I’ll manage through life without that knowledge

What I DO understand is the basic premise that banks have money to lend, they lend the money to those who qualify and those who qualify get a lump sum against collateral then pay back the entire sum plus interest over a set number of payments. Seems like a win win for everyone, right?

Some of my longer-term readers may remember this entry a while back about a couple folks who used my good name, my address and my phone # as a reference on loan applications. For a refresher, click here before reading on.

This week I have had several calls regarding the Beckwith fellow. He has again taken a loan out at a bank with me as a reference. Mind you I have not talked to this guy in years and am only tied into this by the fault of not changing my cell phone number, I suppose. We know Beckwith is a loser, I established this in Sept of 2007 when I wrote the last blog about this (above). Now I want to rag on the bank(s).

Bank #1 calls and is very nice, tells me I was a reference on a note that Beckwith took out. Asks if I have information about his whereabouts and if I can help them find him. I help with what I can and then move on with my day with a low grumble about the fact that this little turd is still getting loans.

Bank #2 calls less than two hours later and it’s a rude ass black lady on the other end who is a collector extraordinaire. She tells me about the bad note, asks if Beckwith lives with me, when I last saw him, etc. all without the willingness to tell me why she was calling. I pry and she says Beckwith bailed on a small cash loan and that I’m now responsible for it since he listed me. Being that I’m not stupid, I knew I was on the hook for absolutely nothing and proceeded to give her the earful she deserved. I’m not proud of the way I presented myself but I was not too happy with her tone with me either.

Later in the day I did remember Beckwith’s dad owned an electric company and Beckwith worked there. Guess who I called back with this information? Yep, you’re right, bank #1. Bank #2 can struggle over this as far as I’m concerned. Thanks Bitch.

This leads me to my question:
Why does a bank ask for references yet do not do their due diligence and call said references. After all, that IS the reason for references. If they had called me at the origination of this loan, I could have told them then that Beckwith was falsely using my name and that I wouldn’t loan him my oldest pair of dirty socks. But no, banks are lazy. They want to get that money out there so they can count the note and begin collecting interest.
This was, with little doubt, a widespread issue during the strong banking period pre 2007. I wonder how many signature and small collateral notes are sitting out there unrecoverable due to douchebags walking on them?

This was a fairly long tirade to accomplish very little other than to set an example for you to make sure undesirable people do not get access to too much information. It’s amazing what they can do with a home addy and a phone number.

I hope Bank #2 calls me back – that was fun.

First Impressions