Banks

[Parallo]

From the start I figured that was what would happen. Banks tend to do that so its common sence. Guess it didn't then. Non-homeowners and no proof of income! Get a loan!

[Datruth]

From the start I figured that was what would happen. Banks tend to do that so its common sence. Guess it didn't then. Non-homeowners and no proof of income! Get a loan!

Giving out 100k To a person, In credit..... is just wrong.

And yes, miadon is correct, you need to create credit before you can take huge amounts of money out.

There should be a starting credit of 10k, and it should built up 10% for every payment you make on time, and go down 10% for every late payment.

100k to a stranger..... no.....

~~Datruth

[Parallo]

No. Its not. If that person is shown to be a stable respected member of socity with a secure financial backround there is no reason not to give his 100k. What Miadon is refering to is proof of income(Having X amount of money) and stability(X amount of time as a member of the bank.) He was not refering to laoning smaller amounts first. That would be pointless. The customer could have no need of 10k.

[Datruth]

No. Its not. If that person is shown to be a stable respected member of socity with a secure financial backround there is no reason not to give his 100k. What Miadon is refering to is proof of income(Having X amount of money) and stability(X amount of time as a member of the bank.) He was not refering to laoning smaller amounts first. That would be pointless. The customer could have no need of 10k.

Either you are a millionaire, who is very well known, and you get a 100k amount, or you arn't, and you start at a small credit.

I'm well aware that there will be certain people who you CAN give 100k to.
Needing to point out every exception to every rule might seem necessary to you, but is quite annoying actually, most people should start out small.

That's why i freaked when i heard someone took out a 100k loan, and yet was relatively unknown and whose trust was under scrutiny.
Oh and if you started a bank in game, giving people nothing but huge sums of cash, you'd be stolen from more times than you could imagine.
You NEED to give new customers small amounts of credit, and 10k caps, I DON'T CARE if they NEED 100k.
That's a recipe for getting ripped off.

He was not refering to laoning smaller amounts first.That would be pointless. The customer could have no need of 10k.

I don't care what he needs, IF he wants to take out a 100k loan he needs to prove he can pay back 10k loans.
I can't believe you giving a person all the money he needs, EVEN though he hasn't proven himself, Could be o.k in your mind
I mean HOW is that o.k, he needs to prove himself first, and then take out the big bucks.

I'm glad you're not running this bank for one parallo, you'd have probably bankrupted it by now.

~~Datruth

[Parallo]

* Parallo breathes deeply.

Okay... Backround check. I will not repeat myself again...
Unless you can adequetly dispute that I'll not post again about it. First you agree with Miadon now you dissagree.

[Idoru]

OK, Here is how it works where I work IRL.

Member joins, applies for a loan almost immediatly. We say no, we have no credit history for you.

The reason we have no credit history is because we dont use the services of Equifax or Experion (credit referencing agencies). We have our own reasons for not credit checking that I dont need to go into. As we have no credit referencing agency in PS then any bank can also not use one.

Where I work we reject their application and then would then say 'if you save money with us for 12 weeks, after that period has passed we would then offer you a loan of double what you have saved in that period provided you leave the money you have saved with us'

This does two things. 1st it shows us that the member has disposable income and can afford to repay a loan. 2nd it gives us a limited amount of collateral so that if the member fails to repay the loan our exposure is only half the value of their loan.

We have an upper limit for 1st loans which is 1000 pounds. If a member then repays that loan they are free to apply for larger amounts. These larger amounts would normally be granted because we now have a credit history and the member has a lower chance of defaulting on their debt.

If you were just to use the method of just making them save with you 1st then you do manage to avoid the spur of the moment thieves but if anyone has a long term plan (and IMO 100k is worth a 'long con') you are still heavily exposed. You must also use an upper loan limit that is low enough to avoid a long con but is high enough to be of use. 10K seems entirely reasonable for this purpose.

[Parallo]

I agree with all that except that in my opinion 10k is a bit low if the person has proven that they are stable and reliable. Then again that is just opinion.

[Idoru]

the point of the 10k is to prove the person is reliable, once repaid in a reliable way you would then know that the client is reliable. If I have 100k and deposit it in the bank and then apply for a loan of 200K the bank is still exposed to 100k of questionable debt with no track record of timely repayments.

[Parallo]

But if 10k is a pittence to you what would the point of the first loan be. All I'm saying is that we agree just on different scales.

[bilbous]

Hey, If you want 100k in easy cash, just apply for 50 credit cards or so with fake details. CC companies are really lax about checking. Actually all you probably need to do is get three or four and use them responsibly for a few months to build up a history, create bank accounts in those names and then start taking out loans. It is slightly more complicated than that but I won't get into details about doing illegals stuff 1. because it is not a serious recommendation for something people should do and 2. I don't know all the details having never actually done it. I do know that CC companies are incredibly eager to have people like me as customers ... carry a monthly balance and pay lots of interest. Hopefully one day I'll actually pay it off.

[chazarus]

HOLY CRAP Bilbous is a scam artist CALL THE COPS!!!

Just kiddin 

[eldoth_terevan]

In a world like PS where building your character takes increasingly large amounts of money to accomplish and where money is a truly scarce resource... where does a bank really fit in? I know why we have them IRL... but I just don't understand how you can implement the banking concept and make it successful in Planeshift. I find the concept interesting, but unless I am actually earning interest on tria I deposit in the bank... I don't see the point in making deposits. And if a bank does not have depositors, how can it give loans? Then there are the problems with characters actually paying back loans, which is being hashed about in this thread. And then, there is the issue that this would become a full-time job for the banker character and take much IRL time. BTW Its all IMHO as I am bored right now...

@bibous: I understand that was not a serious recommendation, but I would not be giving anyone advice to anyone to commit wire fraud. In the US, since the Patriot Act, the banks are requiring a higher-level of checking when making accounts, and much more information is being reported to the gov't. I do not think the fraud issue is funny, a young person could easily screw up their life following that "not serious" suggestion, and there are many impressionable minds coming through this forum. Peace.

[bilbous]

Certainly it is becoming more difficult as the "West" becomes more and more of surveilling societies but all you have to do to be bombarded with CC applications is get accepted into  a university or college. You don't even need to graduate. Actually it is better for these companies if you don't because if you succeed in graduating there is a fair chance of getting a good job which will pay you enough that you can use your CC responsibly, paying off the balance every month and minimise the companies profits. It is somewhat off topic so I will leave it at that.

[eldoth_terevan]

(Yeah, it is all a scam. I am known as a deadbeat because I pay off my balances. Ergo, they do not like me) Now back on topic: This should be a wishlist thing, but perhaps a bank could be opened kind of like a guild. Only the inital fee would be a percentage on a million tria, the remainder of which became the banks starting balance. Interest might be calculated daily or monthly on the total balance of the tria in the bank, perhaps according to variable factors like the number of rat hides traded, number of weapons manufactured, ores sold to Harnquist, et cetera. In this manner people could have accounts that accrued interest according to economic activity within Yliakum. Just my two bits...

[Donari Tyndale]

The bank is a guild, and we calculate interest according to our profit atm.