Some years back my husband and I co-signed a loan for a 20-something nephew knowing he was a bad risk. When he failed to make payments we had to come up with the cash. The story has a half-way happy ending, as he did pay the balance of the loan eventually.
Was it our nephew’s responsibility to pay his debts? Yes. Was it fair that we had to take a financial hit? No. But in choosing to make a risky loan, we were acknowledging the fact that it might happen and accepting some responsibility if it did.
We were helping out a family member and had no expectation of profit. Unless their customers actually lied about their financial viability--and I haven’t seen any evidence that a consequential number did--the banks and loan companies chose to take the same risk out of sheer blind greed. I don’t feel sorry for them in the least.
Warrens , WI
Jul 31 2008 - 9:17pm