Borrowers can get a loan, use it to pay off their debt, then make payments on
the subprime loan on time.
Not exact matches
Specifically, Defendants made false and / or misleading statements and / or failed to disclose that: (i) the Company was engaged in predatory lending practices that saddled
subprime borrowers and / or those with poor or limited credit histories with high - interest rate debt that they could not repay; (ii) many of the Company's customers were using Qudian - provided
loans to repay their existing
loans, thereby inflating the Company's revenues and active borrower numbers and increasing the likelihood of defaults; (iii) the Company was providing online
loans to college students despite a governmental ban
on the practice; (iv) the Company was engaged overly aggressive and improper collection practices; (v) the Company had understated the number of its non-performing
loans in the Registration Statement and Prospectus; (vi) because of the Company's improper lending, underwriting and collection practices it was subject to a heightened risk of adverse actions by Chinese regulators; (vii) the Company's largest sales platform and strategic partner, Alipay, and Ant Financial, could unilaterally cap the APR for
loans provided by Qudian; (viii) the Company had failed to implement necessary safeguards to protect customer data; (ix) data for nearly one million Company customers had been leaked for sale to the black market, including names, addresses, phone numbers,
loan information, accounts and, in some cases, passwords to CHIS, the state - backed higher - education qualification verification institution in China, subjecting the Company to undisclosed risks of penalties and financial and reputational harm; and (x) as a result of the foregoing, Qudian's public statements were materially false and misleading at all relevant
times.
We're thinking about the
time Wall Street banks colluded
on rigging prices
on the Nasdaq market; or the
time they rigged their research departments and told us to buy stocks that they were secretly callings dogs and crap; or the
time they got S&P and Moody's to give them triple - A ratings
on subprime pools of debt while keeping it a secret that they had internal reports showing the
loans didn't meet their origination standards — and then they went out and secretly shorted that debt while continuing to sell it to their customers as a good investment.
Taking out a
subprime auto
loan can do wonders for your credit scores as long as you keep your
subprime auto
loan payments
on time and satisfactorily pay off the debt.
It's an even riskier
time now for lenders to take chances
on subprime loans than it was during the Great Recession from 2007 to 2009.
Bear Stearns averted a meltdown this
time, but if delinquencies and defaults
on subprime loans surge, Wall Street firms, hedge funds and pension funds could be left holding billions of dollars in bonds and securities backed by
loans that are quickly losing their value.
Aurora, which focuses
on so called Alt - A
loans, those made to borrowers with good credit, will continue to operate and may, over
time, resume making
subprime loans if the market for them revives, according to people briefed
on the firm's plans.
More than three
times as many black households as white relied
on subprime loans to buy their home in 2004, Home Mortgage Disclosure Act data collected by the Federal Reserve indicates.