Reply #116: But again, you're arguing about whether it was smart for the couple.

[caseymoz]

Maybe 99 percent of general loans, but student loans, by law, are much more difficult to walk away from than other loans. I'd like to see what statistics on those specifically really are. It simply was not smart or right for the bank to do this in this economy, using a law like that, which was made in the age of debtors prison and the public rack. It also breaks the illusion for customers that money they put in a bank is actually still theirs. Not something I'd want to do now if I were in finance. After every thing else the banks and the finance industry has done, this is not "loss mitigation." It's more like reminding us that they're dicks who should never be allowed near our money. Yes, that mitigates the billions of dollars we had to bail them out with.

And if the bank is going to do this, it should never, ever, charge them for trying to draw on an account the bank itself had closed, without informing them.