What an absurd nation Blog Discussion

Former_MSE_Andrea

This is a Chat Forum discussion on Martin's 'What an absurd nation, we've just given the credit card companies the biggest weapon' blog that you can read here.

hansonaj

So what is the view as to how this will affect credit card tarters?

It would seem that this will now become difficult/impossible and that in continuing to 'tart' then you run much more of a risk of not getting credit when you actually need it!

Aperitif

I'm a bit taken aback about this - how did it escape my notice before reading Martin's blog? I'm usually right up to date on policy change: I must've switched off for the festive season. It's not good, is it? Does anyone know where to find the detail on this? I have a (small) voice in Labour Party policy making and would like to ensure this issue is raised and revisited.

jules36

I certainly agree with Martin on this one.

I said something similar to my other half when it was on the news.

I suppose it just highlights the lack of financial knowledge that these people have, they don't even realise the possibility of people actually borrowing from their card at a low rate and investing it elsewhere for more and making a profit. "Good debt" as Robert Kiyosaki would say ;-)

I wonder what percentage of the £trillion borrowings they reckon we all have are actually expensive bad consumer debt? A large part is mortgages anyway, which nearly everyone needs and is relatively inexpensive.

Why assume none of us is capable of managing our own money just because a few people run up debts and then declare themselves bankrupt to get out of paying them off! I think half of them are just playing the system because its the cheapest and easiest way out too.

Bring back competition and get rid of "big brother". I have cards with most of the companies that are now sharing data, I suppose I should cancel them and open accounts with someone else............

Al_Mac

The white data concept has been around for a couple of years now.

I know Experian take data from several places, if you have a good Barclaycard limit you are more likely to get a good limit at MBNA.

Now if they share savings details as well, it could possibly help, but I doubt it would.

My big concern, having worked in a banks IT for 18 years, the centrally held figures will be wrong, not for everyone, but probably the people who need them to be right. I've seen it happen, all to often.

Perhaps they could share DNA as well:rotfl:

mayyourhope

I missed this story originally too. I guess it is this one...

http://news.bbc.co.uk/2/hi/business/4489222.stm

jules36

Another thought has struck me.

As one of the companies so keen to share all our data is Egg. Does this mean if you use Egg Money manager they will share that data too????

What happened to Data Protection anyway, surely they need our permission

Al_Mac

I'm sure the T&Cs will be amended accordingly.:mad:

ReportInvestor

jules36 wrote:

I suppose it just highlights the lack of financial knowledge that these people have, they don't even realise the possibility of people actually borrowing from their card at a low rate and investing it elsewhere for more and making a profit

Good luck to Aperitif in his/her discussions in the Labour Party policy forums.

The highlighted words from jules36's post may prove obstacles, however.

And don't underestimate Labour's susceptibility to clever industry lobbying. The insurance industry managed to get 1.5% charges (and allowable extra hidden charges) past it for stakeholder pensions and the Child Trust Fund.

Tim_L

There is a 'greater good' argument that it's actually more dangerous (and potentially more costly to the financially savvy) to allow the current credit bubble to expand much further. The current debt situation is arguably now nearing saturation point, so any shock to the system - for example an oil price hike leading to widespread job losses - could cause a serious recession as consumers slam the brakes down on their spending. It will cost people much more if they lose their job because of a debt fuelled recession than the amounts they make or save through 0% or low cost offers.

If you view the changes in this context they do look more like a reasonable stategic attempt to slow down spending on credit in a controlled way than an evil plot to put up the cost of borrowing for the financially savvy. Most credit and debt goes on spending, not stoozing, and allowing people to rack up unmanageable debt is in nobody's interest.

Frankly, if there is a problem, what else can you do? If we accept that it is ridiculous that families already with debt problems are allowed more debt, then how do you solve this problem without giving the people who manage the risk at the lender the information to make an informed judgement? It's unfortunate that those few of us who profit at the margins from playing the system will lose a perk, but I can't honestly say that I can see no benefits from a situation where credit is less readily accessible.

Having been stoozing for something approaching 7 years, I'm more or less winding down operations now. The wind is blowing against it, frankly. We've had an exceptional run, but I think it's coming to an end.

Aperitif

Thanks mayyourhope, for the link. I have since raised the matter but it's only a small start. ReportInvestor,your assumption that I was referring to Labour Party Policy Forums is not correct, but I certainly agree that it's worth raising this issue there if you have the opportunity: It's no good casting blame in respect of things we don't like if we're not prepred to confront policy-makers with our views. I quite agree about the power of industry lobbying - which is why we need to be alert and counter it in whatever way we can.