MAXED OUT (MOTION PICTURE)
Summary
This documentary from writer/director/producer James D. Scurlock focuses on how credit card companies encourage debt, and then profit from it. The film opens in the planned community of Seven Hills, Nevada, as a realtor explains the burgeoning market for custom homes, many of which are acquired via loan devalue (appraising the house when construction is finished and offering a loan based on potential sales price). Next, highlights from the 1960 educational film "The Wise Use of Credit" features students getting financial tips from "Mister Money." In Las Vegas, Robin Leach, host of TV's "Lifestyles of the Rich and Famous" says that people want to dream, explaining that nobody would watch "Lifestyles of the Poor and Unknown." Comedian Louis C.K. then jokes about being having "grossly insufficient funds" during one of his standup routines. In Nashville, radio host Dave Ramsey takes calls from listeners that are considering bankruptcy. Ramsey tells of his own financial history, recalling how he once went completely broke and fought his way back to solvency. Next, statistics show that credit card financial fees have increased 160 percent in the last five years. Consumer advocate Bud Hibbs stresses that credit card companies want their clients to be late on payments. Elizabeth Warren of Harvard Law School comments that consumer lending has proved "obscenely profitable" by targeting those that will "make minimum monthly payments forever." A segment on Providian Financial Corporation tells how the company was fined $400 million for shredding customers' checks and charging false late fees. Footage then shows President George W. Bush appointing Providian director Larry Thompson as "ethics czar," assigned to "clean up corporate America." Next, the trend for Wall Street firms to buy debts is detailed, along with how delinquency and draconian debt collections result. Citizens from locales across the country recall how they fell into debt, and how many of those situations led to severe depression or suicide. Creditors are then seen talking about their techniques for collecting debts and how it can be "a fun industry." At a pawn shop in Seattle, the store owner details how customers think of the shop like a bank, allowing him to profit from their financial woes. Investigative reporter Mike Hudson tells how many corporations make big bucks by lending to those who won't be able to repay them. Hudson interviews various low-income individuals, all of whom recollect being drawn to an offer, then left destitute. New York Attorney General Eliot Spitzer discusses the high number of complaints he's received from consumers about banks' questionable practices. Next, the film shows how college-age students are targeted by credit card companies, resulting in huge debts. In Congressional consumer credit card hearings, Senator Jack Reed questions Julie Williams, comptroller of the currency, about eighteen-year-olds being propositioned on campus by credit card firms. Attorney David Szwak tells how credit ratings are determined, coming into conflict with TV host Suze Orman as she emphasizes the importance of FICO scores. Warren details how the credit industry has labored to change bankruptcy laws, which she says is the public's ultimate defense against creditors. Bush is then seen urging Congress to pass a bill to deny the right to file bankruptcy, followed by senators' objections during legislative debates. Federal Reserve Chairman Alan Greenspan talks about the federal budget debt and its consequent problems. Footage of victims from Hurricane Katrina illustrates "people who live on the edges of society," all of whom require a government bailout. Warren later explains how a growing number of middle class taxpayers are becoming "part of the poor." In an epilogue, banking officials at Congressional consumer credit hearings tell how they "value" customers. Bush then tells reporters how Iraq is repaying its loans to America with oil. Finally, citizens in credit card debt tearfully explain how their situations keep going from bad to worse.
Details
- NETWORK: N/A
- DATE: 2006
- RUNNING TIME: 1:26:15
- COLOR/B&W: Color
- CATALOG ID: B:89296
- GENRE: Public affairs/Documentaries
- SUBJECT HEADING: Finance;
- SERIES RUN: N/A
- COMMERCIALS: N/A
CREDITS
- James D. Scurlock … Producer, Director, Writer
- Alexis Spraic … Associate Producer
- Lee Thompson … Associate Producer
- Benoit Charest … Music by
- George W. Bush
- Louis C.K.
- Alan Greenspan
- Mike Hudson
- Robin Leach
- Suze Orman
- Dave Ramsey
- Eliot Spitzer
- David Szwak
- Elizabeth Warren