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When I saw that story on the news about egg cards it seemed the lender had one story of trying to be responsible by taking the cards from bad payers, but the people who had the cards had another story of having their cards taken even though they had never missed a payment. They just had their cards taken because the banks was not making a profit from them. I know who I would believe.
I know someone who had huge credit card debt and the card company offered to convert it to a loan to help. What they didn’t tell them that if it was converted to a loan they house would be at risk if they missed a payment where as if it’s a card debt it’s unsecured debt.
I have a lot of debt but it dont bother me because i know there is very little the banks can do apart from send me sh1tty letters. people need to find out there rights and not to be ittimadated by the big companys. for example, i just found out if your on benefits the banks cannot take charges from you.@forumhostpb wrote:
Ironically, when the Egg credit card recently withdrew their card from thousands of people whom they said were poor credit risks … there was a public outcry.
Nobody praised them for making a ”good” or ”responsible” decision to withdraw credit and thus prevent those who possibly couldn’t afford it from getting into debt.
some companies are responsible lenders, I had one of my now cut up store cards limit reduced, someone at the company was obviously keeping an eye on customers accounts and decided I may if left with the limit they had given me go beyond my means. Another example was I ran up a huge phone bill with orange, i wrote to them , agreed a payment and they didnt charge me a penny in interest, within 8 months that bill was cleared . well done to them, and well done to egg for being so well adminstrated they took preventative steps to stop many people getting in deeper than they could afford.
@chickenman wrote:
When I saw that story on the news about egg cards it seemed the lender had one story of trying to be responsible by taking the cards from bad payers, but the people who had the cards had another story of having their cards taken even though they had never missed a payment. They just had their cards taken because the banks was not making a profit from them. I know who I would believe.
The judgement is made NOT on whether you’ve missed a payment or not, but on what your overall credit score is. This is said to represent your credit ”risk”.
Every form of credit you have from a mortgage or a mobile phone credit account or a personal loan right through to a credit card or utility bills is reported through to credit organisations like Experian. They additionally take into account any credit checks done on you by credit providers, any changes in your address or other personal circumstances, any CCJ’s, any late payments over the last 5 years or so, any adverse information provided by CIFAS and so on.
They collate all this information and produce a credit score (usually out of 1000) which represents your overall risk.
The lender then applies their own credit policy to this. For example scores under 250 get automatically refused – 250-500 get reviewed by a credit risk specialist – 500+ get an automatic acceptance.
Each lender has their own lending / risk criteria. Egg simply decided to raise the level at which they would refuse or withdraw credit and withdrew cards from those that fell below the pre-set limit.
^^ Yes these good old trusted banks with their systems and criterea…
If you do not meet their criterea there is always a sister company willing to entertain your needs and you will always get credit. You will pay through the nose for it!!
This is the cycle that they are a part of and it must stop.
Compound interest is what is crippling people.
And it was very true about Egg. They werent making money out of people paying their balance in full every month, they are not there most rewarding customers, they can do without them. No charges, no interest… what good are they to a finance company offering credit?!
Believe me PB, Ive been in the industry long enough now, yes people should take responsibility for their own actions but irresponsible lending HAS TO STOP.
@sharongooner wrote:
@r.O.T.T wrote:
the borrower not the loaner is responsible
To an extent of course that is right. But loans should be administered properly. Clearly people who cannot afford repayments are still being accepted for loans.
We will be living in a country of bankrupts before long, if new lending laws are not implemented soon, or more people will be driven to the brink. And succeed.
Fancy dying because of money. A complete and unnecessary waste.
one should always die beyond ones means
debt shouldn’t ever kill ya, but them bailiffs can’t half pack a punch…………..
@toybulldog wrote:
debt shouldn’t ever kill ya, but them bailiffs can’t half pack a punch…………..
One of ours got kicked in the knee by a smack head this week lol…. our bailiffs are alright you know. Its the private ones, or those working for the magistrates you got to watch out for. And they do the old compound interest trick too.
@sharongooner wrote:
@toybulldog wrote:
debt shouldn’t ever kill ya, but them bailiffs can’t half pack a punch…………..
One of ours got kicked in the knee by a smack head this week lol…. our bailiffs are alright you know. Its the private ones, or those working for the magistrates you got to watch out for. And they do the old compound interest trick too.
yeah….. been there….. borrowed the T-shirt ya know ?
@toybulldog wrote:
@sharongooner wrote:
@toybulldog wrote:
debt shouldn’t ever kill ya, but them bailiffs can’t half pack a punch…………..
One of ours got kicked in the knee by a smack head this week lol…. our bailiffs are alright you know. Its the private ones, or those working for the magistrates you got to watch out for. And they do the old compound interest trick too.
yeah….. been there….. borrowed the T-shirt ya know ?
Kick em in the knees next time :wink:
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