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JPCass
join:2001-01-23
Denver, CO
| Re: Spitzer is THE MAN. said by garmst  :Spitzer didn't go after Norvergence, he went after the finance companies that loaned the customers the money to buy the equipment. Spitzer went after an innocent party who had nothing to do with the crime. Finance companies have some duty, if only to themselves and their shareholders, to be sure that they are not involved in unconscionable transactions that amongst other liabilities run a higher risk of default. They certainly wouldn't, or shouldn't, make a loan based on something for collateral without due diligence to ascertain the true recoverable value of the collateral, and they should take somewhat similar care with any financing or leasing.
Lenders charge interest in part based on risk, and I'd say that in this case they took a risk and lost due to doing business with a disreputable vendor. Big businesses, particularly the sort of supposedly reputable names involved in this, need occasional reminders to tighten up their business practices. | |
|  garmst
join:2000-09-17
New York, NY
 ·Speakeasy
| Re: Spitzer is THE MAN. A bank has no such duty at all, particulary in law. A banks duty is to follow all applicable laws in the pursuit of its business, which it did, and provide maximum value to the sharholders.
You the borrower or lessor have the responsibility to determine that what you want to buy is fair and suitable for your purposes. This is your responsibility and no one elses.
Why do you want the bank to look into your personal affairs to determine what you want is good, proper, fair and appropriate? Do you want them to decide that the car you want to buy / lease is proper? Do you want them to decide if you should have that house you want to buy? Are you that irresponsible that you have to blame a bank for being reckless in your business and prersonal dealings? | |
| clecrupt9
join:2002-01-22
GA
| said by JPCass : said by garmst :Spitzer didn't go after Norvergence, he went after the finance companies that loaned the customers the money to buy the equipment. Spitzer went after an innocent party who had nothing to do with the crime. Finance companies have some duty, if only to themselves and their shareholders, to be sure that they are not involved in unconscionable transactions that amongst other liabilities run a higher risk of default. Thats right- What higher risk can you have than doing business with a company that can attract a State AG on your tail.
But you know, everyday there is a big financial institution in trouble over something. | |
| | garmst
join:2000-09-17
New York, NY
·Speakeasy
| Re: Spitzer is THE MAN. The risk for banks is irresponsible people who make bad financial decisions, will not take responsibility for them and call upon a thug with the power of government to make them whole at an innocent parties expense.
Maybe the banks will have to "redline screen" for deadbeat, crybaby customers and not lend money to them. | |
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jerr123
| Re: Spitzer is THE MAN. Where you are missing the point is that Norvergence sold the consumer a "total solution" that guaranteed a cost savings. The "package" could not be bought unless the consumer rented the "Matrix" box. The consumer was not leasing the box for a period of time at the end of which he would own it. This was not a leasing arrangement. Norvergence perpetrated this scam on the leasing companies as well as the end user. The leasing companies recourse is to go after Norvergence and not try to recoup their loss from the consumer. The consumer has a right to stop their payments if they are not getting the "total solution" promised them. | |
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JoshNJ
Premium
join:2001-12-25
Freehold, NJ
1 edit | Re: Spitzer is THE MAN. said by jerr123:
The consumer has a right to stop their payments if they are not getting the "total solution" promised them.
no they don't, if the money is laid out by the bank and not norvergence, the customer needs to follow by what they agreed to pay. the bank didn't scam anyone.
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