“The bankers … strategy emerged: Target families who were already in a little trouble, lend them more money, get them entangled in high fees and astronomical interest rates, and then block the doors to the bankruptcy exit if they really got in over their heads” — Elizabeth Warren
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In this quote, Elizabeth Warren is criticizing predatory lending practices by banks that targeted families in financial difficulty. She says the bankers’ strategy was to lend more money to people already in a little trouble, knowing they would get trapped paying high fees and interest rates.
Warren argues that if those families truly got into deeper debt over their heads, the banks would then block them from being able to declare bankruptcy as a way to escape or reduce their debts – keeping them under the thumb of the banks and in long-term debt.
The quote portrays Warren’s view that some banking practices took advantage of vulnerable families in crisis rather than helping them get out of financial trouble.