Unenforceable Credit Agreements

Church_mouse_4

Thanks Browntoa, how complicated. What does CCA stand for?
Personally I think that money owed should be repaid, but I know that circumstances change for people over the years and tolerance, understanding and information can offer support for those who really need it. Especially when they may be feeling really desperate. I was really shocked at the horrible remarks found on cifpower's link.

Em08

KTM thankyou for your response, I am now dealing with the matter and thank everyone for thier advice and help

Much love and luck to you all

bert&ernie

97trophy wrote: »

IMO quite rightly.

When you weasel out of credit card the matter does not end there. That is an actual loss and that cost gets past onto someone else.

More and more people are finding their CC APRs increased. Some folks are now being charged over 30% pa, compared to 10 to 15% one year ago (checkout the Egg discussion on this forum). The CC companies are doing this to cover losses from people weaseling out their debts.

This is not hurting the rich of the country, this is hurting working class British families who have small balances on their credit cards.

So I think we are right to judge.

It seems that you have a basic understanding of how a credit card business works. Costs do indeed get passed onto someone else. The bank wants to maintain the overall profitability of its book, so it offsets losses and reduced revenue on one side by increasing the revenue that it generates from the other. However, its not just credit losses that hit the banks P&L - unprofitable and low profit customers also need to be subsidised by higher margin lending.

Its not just people "weaseling out of their debts" that adds to the burden of those subjected to higher rates - they also have to pay for 0% teaser offers and those who enjoy the convenience of their card without revolving a balance. To follow your logic, Gamers and Transactors are also stealing bread from the tables of "working class British families" as are those who, through no fault of their own, are unable to meet their commitments.

You may reserve the right to judge, but I ask that you look beyond your moral prejudices and turn your attention on those that make the rules rather than individuals who are simply playing the game to their advantage. The blame lies with the lender for booking business that it can't legally enforce - not with individuals for exercising their legal rights.

KrisD

TFD, 97trophy and Simon Templar - why?

Why feel the need to become angry and ugly. If you do not want to answer a question or agree with the morals or ethics of another poster why get involved? Sorry, are you God? Should people have to answer to you? Doesn't this interrupt the polishing of your Halos?

Whether you agree or not, the manner in which you respond with, you are being offensive and judgmental. Please refrain. You are the kind of people who itch for a fight and who love to complain.

In the words of the Cheers theme song 'making your way in the world today takes everything you've got'. Remember, these credit card companies have been fleecing consumers for years with unjustifiable fees. Mind yourself getting off your horses, it's a long way down.

97trophy

bert&ernie wrote: »

Its not just people "weaseling out of their debts" that adds to the burden of those subjected to higher rates - they also have to pay for 0% teaser offers and those who enjoy the convenience of their card without revolving a balance.

I have no doubt that 0% finance and other offers do cost the CC's money. However, IMO there is a huge difference between a firm deciding to offer such services and a CC customer deciding not to pay back money they have spent.

I acknowledge that you have a different view and there is nothing I can say that will change your view.

97trophy

KrisD wrote: »

TFD, 97trophy and Simon Templar - why?
Why feel the need to become angry and ugly. .

As I say in my post, millions of working class people in this country are now being forced to pay higher credit card bills because of the rising number of defaults.

Just today someone has posted how their Virgin CC APR has been raised to 34%. Many of these people are unable to balance transfer because of the credit crunch.
My sympathy is with these people.

PROLIANT

97trophy wrote: »

As I say in my post, millions of working class people in this country are now being forced to pay higher credit card bills because of the rising number of defaults.

Just today someone has posted how their Virgin CC APR has been raised to 34%. Many of these people are unable to balance transfer because of the credit crunch.
My sympathy is with these people.

I will second that, it is the "genuine" people who "just get on with it" and don't try and defraud banks by means of a "stupid", frankly "sadistic" loophole in British law, how would they react if their business - for example was being hit by these loopholes from their customers? I am sure they would change their tune.

KrisD

PROLIANT wrote: »

I will second that, it is the "genuine" people who "just get on with it" and don't try and defraud banks by means of a "stupid", frankly "sadistic" loophole in British law, how would they react if their business - for example was being hit by these loopholes from their customers? I am sure they would change their tune.

'stupid'? (perhaps the lenders shouldn't have been so stupid as to have made these errors?) 'sadistic'? c'mon now. Quite dramatic. My point to you and some of your posting chums on here is that right or wrong as you may be, you are very quick to condemn and in a very unpleasant manner. I'm sure you are perfect and saint like in every other aspect of your lives. If someone chooses to take advantage of such a loophole they will do so irrespective of abusive ranting and raving from other posters no matter how valid their point may be. Of those that do decide to do it they may have differing motivation (again rightly or wrongly) e.g. they may have had particularly negative dealings with their company. Let's face it, companies have been taking advantage of consumers for years e.g. people with no or little credit history who are perhaps on a low income e.g. uni and school leavers, single parents, people left in debt by an ex partner, young families etc have to apply for a credit card with a ridiculous interest rate!!! Stupid. Making things more difficult for those who will find it harder to manage in the first place. Don't think for a second that the amount that would be claimed by people to be written off would even leave an indent in the profits made by these credit lenders. I do not want higher interest rates in the future but I'm not going to have the audacity to tell other people on a forum what to do.

As bert&ernie rightly points out:

"You may reserve the right to judge, but I ask that you look beyond your moral prejudices and turn your attention on those that make the rules rather than individuals who are simply playing the game to their advantage. The blame lies with the lender for booking business that it can't legally enforce - not with individuals for exercising their legal rights."

Lenders should have managed their lending more effectively. Interest rates rising is the reponsibility of the lenders. Blame ultimately lies with the credit cards companies and banks. This loophole, as previously pointed out, is not the sole reason for a rise in interest rates.

Seriously guys, this forum is becoming a fight forum. There is little interest in providing advice or sharing experiences. I have had a few nasty statements from posters myself which were unecessary.

simon_templar_2

Kris, if you want a love in forum then you need the CAG forum! People have opinions and not all agree. This does not make them ugly or angry. The answer to the original question is found on many other threads. It is not a fight forum but one where people differ.

PROLIANT

Well, I am ugly and angry.