With Delphi's exploding population and even further expanding class of poverty, banks and loan companies have begun to pop up as far as the eye can see. First Bank of Delphi is one of these groups out to make a quick buck.
Like so many other's of it's class, the FBOND is loaning families and individuals prices ranging from 1,000 to 50,000. Many of the other banks will loan you the same amount, but without a clever little twist... Most of the bank will loan it to you at a 6% yearly for a thirty-year fixed rate. FBOND however sneakily takes advantage of unsuspecting customers by marketing theirs at 6.2% for a thirty-year fixed rate, but no interest for the first ten years.
This was a move of both genius and devilry. The no interest for the first ten years is meant only for those ten years. It builds up and then you are left with a 6.2% yearly unless you can pay it back within the first ten years, something that less than 2% of the population would be able to.
That is the genius, but it would not be as bad if not for this last little tid-bit. Because of recent changes in law, if you are unable to pay the money to the loaner, they are able to take all of your belongings. As if losing your house/apartment wasn't bad enough though, you also have to work for them until you can pay your loan back, where interest is STILL being compiled. Past cases of this have resulted in the loanee's working for decades to pay their loan back.
James R. Phillip, (founder of the First Bank of New Delphi) has been praised as a saint by most, but officials in the area are trying to warn the public of the potential dangers posed by his seemingly inoccent bank. Current tallies have the bank's loans at almost a million dollars, by maybe 1250 possible loanees.