Maxed Out: Hard Times, Easy Credit, and the Era of Predatory Lenders by James D. Scurlock
DVD 332.743 M
New Adult Nonfiction 332.743 S
The main theme of Maxed Out is that the rules of the credit game are changing faster than investors and consumers can keep up with them. James Scurlock demonstrates this by looking beyond the financial pages to tell the stories of real people caught up in the credit industry. In addition to the usual "talking heads" - economists, academics, financial advisers, and industry spokespeople - we hear the perspectives of collection agency owners, pawn brokers, real estate agents, and many others. But the real emotional punch of the movie is the unforgettable interviews with average folks caught in financial nightmares that they never saw coming and which they can not control.
Scurlock also deserves credit (excuse the pun) for identifying the hidden liabilities in the mortgage industry and correctly predicting the economic melt down that would ensue. (Maxed Out was completed near the end of 2005, when the housing/mortgage market was still going strong.)
Maxed Out also highlights some surprising facts about how the credit industry conducts business, such as:
• Most credit card companies and banks are MORE likely to loan money to borrowers who are LEAST able to pay off their debts, because these customers generate the most profits.
• Credit card customers who pay all of their charges every month are known within the credit industry as “free loaders” and “deadbeats.”
• Approximately 1 of every 10 credit reports contains, at least, one error and it is very difficult, if not impossible, to remove an error from a credit report.
One minor criticism of the movie is that it covers such a broad range of issues - credit cards, pawn shops, payday loans, sub-prime mortgages, Las Vegas real estate, gambling addiction, FICO scores, collection agencies, the Great Depression, the national debt, bank mergers, and more – that it can be hard to follow how all these things are connected. Luckily, most of these questions are answered in the companion book.