The Banks or Customers???

[jellybaby]

http://news.bbc.co.uk/1/hi/business/5029530.stm


Interesting read.

[Gareth]

I'll watch it, but at the end of the day, I realise that banks are businesses (admittedly very profitable ones) and not charities, so of course they're looking after their own interests 99.9% of the time.

[Chimaera]

Just read that article - very interesting! It does seem that the credit card companies are always increasing my credit level - shame I'm getting rid of them now. After many years of using credit cards I've decided to pay them off and cut them up - why should the banks make more money from me.

[jellybaby]

Originally Posted by Gareth

I'll watch it, but at the end of the day, I realise that banks are businesses (admittedly very profitable ones) and not charities, so of course they're looking after their own interests 99.9% of the time.

I appreciate that, but to encourage people to borrow more than they can afford is surely wrong.
They are preying on the vulnrable(sp!) and making ALOT of money of them.

[Graham M]

I have around about £3500 debt and im determined to get it cleared out now!

[greencreeper]

That article is very annoying No one will give me credit despite there being nothing wrong with my credit history (apart from not having one). The notion that banks are evil and driving everyone into debt just isn't believable.

I had a Marbles credit card from HFS bank in Birmingham, I had it for 3 years and only used it twice, once when we went on holiday we used it to pay the hotel bill and another time in Newcastle when we went there for 5 days, the limit on that card to start with was £3,500, every 3 months they used to put it up by a few thousand, in the end I had a limit of £12,000. To people who have no financial sense it could have been a recipe for disaster, now I don't like owing credit card firms money, if you use them right you can get away without paying any interest. I phoned HFS bank up to ask them to drop my limit to £2,500 like my Nat West one, they turned round and said no, a few days later I received a book of cheques from HFS connected to my credit card, basically they were saying that if I needed cash I could write cheques out to myself, that was the last straw I cut it up and sent it back recorded delivery.

They still keep phoning me now asking me if I want a loan, I say sure I could do with £25,000 they process the application then they go on about repayments, I pipe up and say, "do I have to pay it back"? They soon put the phone down on me.

---------- Post added at 10:56 ---------- Previous post was at 10:54 ----------

Originally Posted by Gareth

I'll watch it, but at the end of the day, I realise that banks are businesses (admittedly very profitable ones) and not charities, so of course they're looking after their own interests 99.9% of the time.

The banks don't like people who pay their balances off each month, they like the people who make the minimum payment each month because the banks are getting more money out of the customer.

[Halcyon]

At the end of the day Banks need to make money. It's just the way they do it that seems to dupe you into thinking they are helping you whilst actually they are going to rip you off.

[Gareth]

Originally Posted by jellybaby

I appreciate that, but to encourage people to borrow more than they can afford is surely wrong.
They are preying on the vulnrable(sp!) and making ALOT of money of them.

Yeah, I do see your point... I'm just a bit unsure as to whether the fault lies with the banks/credit card companies or with the individuals who are getting into so much debt.

Part of me thinks that the banks are evil and shouldn't lend these people such large amounts of money... but then part of me thinks that these people should have known better and they should have known whether they can afford to meet repayment levels, etc...

It kinda gets my goat up when people have got these loans, credit cards, store cards, etc... and then spent the money happily enough, but when the debt collectors come smashing their doors down, they start moaning at the credit card companies for not having managed their debts for them.

Originally Posted by Halcyon

At the end of the day Banks need to make money. It's just the way they do it that seems to dupe you into thinking they are helping you whilst actually they are going to rip you off.

Banks can handle debt they are insured against debt and fraud, lets look at it like this. If you took a loan out from lets say HSBC for £5,000 over 5 years, you made 12 payments of £150 = £1,800 then you defaulted on the loan after 12 months, they send you letters then eventually sell the debt to a recovery agent for £6,000, they have made £2,800 from the loan, the recovery agent then is the owner of the debt the bank have nothing more to do with it they've made their money, when you hear of banks suffering from consumer debts it's a load of bull, the banks make more money selling the debt to a recovery agent then they do if you'd kept paying the loan.

---------- Post added at 11:15 ---------- Previous post was at 11:12 ----------

Originally Posted by Gareth

Yeah, I do see your point... I'm just a bit unsure as to whether the fault lies with the banks/credit card companies or with the individuals who are getting into so much debt.

Part of me thinks that the banks are evil and shouldn't lend these people such large amounts of money... but then part of me thinks that these people should have known better and they should have known whether they can afford to meet repayment levels, etc...

It kinda gets my goat up when people have got these loans, credit cards, store cards, etc... and then spent the money happily enough, but when the debt collectors come smashing their doors down, they start moaning at the credit card companies for not having managed their debts for them.

When you walk into a shop like Burtons or Currys you are pestrerd into applying for a store card, the sales people are paid a good commission to sell these accounts on behalf of GE Capital Bank, you can't lay the blame at the peoples door the shops and banks have to come in for some stick to.