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Forum Post: The People's Credit Agency?

Posted 7 years ago on Nov. 16, 2012, 9:04 p.m. EST by CryptoFreak (4) from Tulsa, OK
This content is user submitted and not an official statement

Hey Everyone,

I'm a software developer who's been following the Occupy movement since its beginning. While I don't agree with everything the movement advocates, I find myself in enough agreement to want to get involved and help change the world for the better.

One of the things that seems to be keeping people down is the absolute unfairness of the credit system. So, I was thinking, why not toss the system out and create something new? That's what my post is about tonight.

Obviously, we need to move away from the corporate backed credit system. And ideal situation would be a system of person to person loans where we backed each other financially and entered into non-coercive, voluntary, contracts with each other. So my thought is to start with "The People's Credit Agency"

The People Credit Agency is a software program that would be available to anyone wanting to participate. People wishing to borrow from others would register and receive a number that they would provide on their loan request. The lender (another human being, not a bank or loan company) would then be able to put that number into the system and check that persons payment reputation before deciding to make a loan to that person or not. Of course, as the person paid the money (or Bitcoin or whatever was lent) back, that would be added to their reputation report.

Slowly, we'd build a community of trust where we literally could lend to complete strangers, similar to the way the banks do, with confidence and without the exploitative motivations banks and loan companies have.

So what do you think? Could it work? Would you use it? I'm willing to throw my hands in and write the software and provide the initial infrastructure if we agree it's viable.




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[-] 1 points by elf3 (4158) 7 years ago

Nationalize the Credit bureau remove all private hands - get rid of bank interest (there used to be set limits and laws on this - 3 percent was the maximum) and end the Federal bank....um hello - the government is the people (remember they were hired by us to run our collective money) - we need to end the corruption caused by fixed monopoly corporatism. If you're saying it's so corrupt we need to overthrow it - then yes I know exactly what you mean. Also why is credit information being held and scored by the banks? (Equifax, Experian, and Trans Union, all get paid by banks - conflict of interest) The lower your score the higher your interest - but there is no regulation on how they score you. For all we know they might give woman and blacks lower scores (and it is totally legal to do so) and then charge you more because of it. Also the Federal bank is granted power to print money by the government and are allowed to determine their own interest rate that we the people will pay back... here's the kicker because of that interest rate the amount we owe in interest will always be greater than the amount borrowed, thus insuring we will always be in debt? So basically a small group of men is hosing the entire planet - that is insanity.

[-] 1 points by jemmie (2) 7 years ago

Interesting concept. Would you allow people to charge interest? Or would this be a sort of helping–each–other–out–for–free kind of thing? And what would you do when, inevitably, scammers moved in and tried to rip people off?

[-] 1 points by Newid (8) 7 years ago

Needless to say, this is already being done. There are private creditors available on the Net. But I am more curious about the purchase of debt; can we do a debt swap, bundle and sell that debt as investment vehicle?

[-] -1 points by VQkag2 (16478) 7 years ago

What private creditors on the net are you referring to?

[-] 1 points by freewriterguy (882) 7 years ago

OH man now your talking, the peoples credit agency, and the peoples bank, lets do it!!!!!!!!!!!!!!!!!!!!!!!!!!

I have internet and marketing skills, as well as the ability to sell ideas to people. Plus I am a successful business man.

[-] 1 points by CryptoFreak (4) from Tulsa, OK 7 years ago

We should definitely connect then. How can I get in touch off the forum?

[-] 0 points by freewriterguy (882) 7 years ago


[-] 1 points by CryptoFreak (4) from Tulsa, OK 7 years ago

Got it. Expect a message shortly

[-] 0 points by TheRazor (-329) 7 years ago

Only an absolute fool would lend his money in an unsecured position. This would be a short track to financial ruin.

Here is why: Lets say you lent 10 people $100 at 10% interest. At the end of one year you would have $100 interest profit but if just one creditor fails to repay, you are now losing money. Now to make up your loss, you would have to charge 20% on the next 10 creditors to break even.

[-] 0 points by VQkag2 (16478) 7 years ago

We certainly need an alternative to the bankster criminals who lend at loanshark level interest.

Good luck.

[-] 0 points by DebtNEUTRALITYpetition (647) 7 years ago

It's not the interest rate that is the problem, it's the low monthly payments that lure people into more and more debt over time.

[-] -1 points by VQkag2 (16478) 7 years ago

Oh so the 29.99% cr card rates is ok? How the payday loans andthose even higher interest rates? None of that matters?

[-] 1 points by DebtNEUTRALITYpetition (647) 7 years ago

Not as much as paying a higher monthly minimum payment. Yes, 29.9% is outrageous. However, anything under 20% is survivable if a person is paying 5% of the total due every month versus 2%.

The most important thing the 5% monthly minimum payment does is lower the total amount of debt one can afford to maintain on a monthly basis.

[-] -1 points by VQkag2 (16478) 7 years ago

i'm not against increasing the monthly minimum payment, but I also think that We should limits to the interest rate. 10% should be enough.

[-] 1 points by DebtNEUTRALITYpetition (647) 7 years ago

The point is the monthly minimum payment cannot be increased because most people could not afford it.

However, if newer debtors were put on a 5% monthly minimum payment instead of 2%, even a 20% interest rate would be the equivalent of an 8% interest rate charge because the debtor is paying 5% of the monthly minimum payment instead of 2%.

[-] -1 points by VQkag2 (16478) 7 years ago

yeah I understand. I am not against your suggestion.

Do you think if we reduced the interest rate to 10% that the existing debtors minimum payment could be increased?

[-] 1 points by DebtNEUTRALITYpetition (647) 7 years ago

No, but I have a plan. Just got to convince enough people.

I would overturn 90% of all credit card defaults since the year 2000 because the credit card protector insurance program was a vastly over priced, unregulated ruse that gave debtors with a legitimate reason for having to miss a payment or more no true protection.

The coverage was so expensive that basically the credit card companies were charging five years worth of premiums in 3 to 5 months time, then only offering coverage for those same 3 to 5 months.

As punishment, I would lower all credit card debt in half (the 50% percentage decrease increasing for those with less and less credit card debt) and then based on these lower credit card debt levels, then raise the monthly minimum payment to 5%.

The result is people would have more re-spending money every month and more ability to pay down their credit card debts if they wanted to, and the higher monthly minimum payment would prevent them borrowing too much money as well.

[-] -1 points by VQkag2 (16478) 7 years ago

Sounds promising, Something should be done to prevent people from borrowing too much. However, I still believe we must limit whar cr cards charge. I like 10% limit.

[-] 1 points by DebtNEUTRALITYpetition (647) 7 years ago

That's part of the problem. Being charged 20% interest while paying 5% monthly minimum is actually better than being charged 10% interest while only paying a 2% monthly minimum.

I am starting to be shocked at how few people know this. On the other hand, unless one has looked at both types of bills, I can see where the confusion comes in.

[-] 0 points by VQkag2 (16478) 7 years ago

Well the total monthly payment could be lower and you will pay your debt back sooner but I would prefer.:

10% interest and 5% mthly minimum.

[-] 1 points by DebtNEUTRALITYpetition (647) 7 years ago

That would actually be a safer bet for the banks as well. However, they don't necessarily want safer since the gov is there when they make a mistake.

[-] 0 points by VQkag2 (16478) 7 years ago

Who cares what banks want?

[-] 2 points by DebtNEUTRALITYpetition (647) 7 years ago

Because it's usually wiser to not do battle with an entity unless you understand them.

[-] 1 points by DebtNEUTRALITYpetition (647) 7 years ago

For answer below....

yes, I agree it's not important to be pre-occupied with what the banks want, however it's still good to know what they want.

[-] 0 points by VQkag2 (16478) 7 years ago

I didn't say should not understand them! Nor did I say we should not KNOW what they want!

I submit we should not care what they want. We shouldwhat is best for the 99%


[-] 1 points by Builder (4202) 7 years ago

Mine is 10.99% and that's with an anual fee of $50.

We also have a hardship fund run by govt, where you get your credit cards paid out in full, and you can pay back the gov at a rate you nominate, interest free.

Kinda half-way to declaring bankruptcy, without the stigma.

[-] -1 points by VQkag2 (16478) 7 years ago

Unfamiliar with the "hardship fund". Sounds useful. Probably hurts your credit rating.?

[-] 1 points by Builder (4202) 7 years ago

Temporarily. No more than a filing for bankruptcy.

Another option is to cash in any superannuation policy you have.

People get credit to pay credit. That's when things get bad rather quickly.

[-] 0 points by VQkag2 (16478) 7 years ago

Sounds like it. No policy for me. But I could appreciate the situation.

Good luck.