Released: October 22, 2008

Banks mine data and woo troubled borrowers

Source: Brad Stone, New York Times (Free Registration)

Brenda Jerez hardly seems like the kind of person lenders would fight over.

For months after she emerged from insolvency last fall, 6 to 10 new credit card and auto loan offers arrived every week that specifically mentioned her bankruptcy and, despite her poor credit history, dangled a range of seemingly too-good-to-be-true financing options.

“Good news! You are approved for both Visa and MasterCard — that’s right, 2 platinum credit cards!” read one buoyant letter sent this spring to Ms. Jerez, offering a $10,000 credit limit if only she returned a $35 processing fee with her application.

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