Real Story last night

bridiej

Is it me?

Last night Real Story was focussing on Lloyds TSB and it's dubious lending.

They were offering people loans of £10,000 or more, and the people were accepting them even though they could not afford to pay them.

Now, I know it is a bit strange they were offered the loan in the first place, but at the end of the day people were accepting these loans to consolidate their debts (money they'd already quite happily spend).

One guy was on sick benefit yet he got a huge loan that he knew he couldnt pay - WHY?

Although the bank is partly at fault for offering them the loans in the first place, people should be responsible for themselves and able to say "No" >:(

lisyloo

people should be responsible for themselves and able to say "No"

I agree, but what was also pointed out in the program was that these people were all in a vulnerable situation and the bank capitalised on that.
They were not thinking straight about their own situation.

The bank should be there to advise and they should be cautioning people who are in a vulnerable state not encouraging them to get into debt and capitalising on their vulnerability.

It would have taken a lot of guts for those people to go onto the program and admit how stupid they have been.

lisyloo

Another point is that these individuals will not be experts on the terms and conditions of insurance.

Another aspect of the program was the mis-selling of expensive insurance to people who didn't need it.

The individuals in this case and not knowledgeable about the product whereas the bank ARE and they are expected to advise.

If you are ever in a court case with a company then there is definitely a distinction made between "joe public" and someone in a position of knowledge e.g. a doctor. The person in a position of knowledge has some responsibility as they know more than the layman.

The bank staff quite clearly took advantage of people who put their trust in the bank.

peter_the_piper

One of the most disturbing things was that they had promised on TV that this could not occur again. Obviously the staff either had a monetary advantage to selling to just anyone or they would lose their job if they didn't. Either way its making me relook at my account with them.

rushnowt

Thanks Bridie, I hadn't tried Lloyds TSB, ya dont have the number do ya, ooohhh well never mind i'll pop in while i'm in town, maybe get a visa card too ;D ;D ::)

bridiej

LOL @ Rush!!! ;D

bridiej

Another point is that these individuals will not be experts on the terms and conditions of insurance.

Another aspect of the program was the mis-selling of expensive insurance to people who didn't need it.

But surely you read things before you sign them?

rushnowt

But surely you read things before you sign them?

i'm guilty of not always reading the small print :-[ :-X :-X

lisyloo

But surely you read things before you sign them?

I can honestly say that I didn't read the 300 page deed that came with my recent share options.
Neither did I read the very large terms and conditions of my mortgage company.

I think I read the important stuff (not documents of hundreds of pages).

I certainly think that a lot of people don't and that there are a lot of people out there who wuoldn't understand what they read.

Do you honestly read all the documentation? including hundreds of pages of terms and conditions?
(This is a rhetorical question as I know NO-ONE does this).

bridiej

No, I dont read every single page but it is quite easy to read whether or not you're signing for the payment protection insurance...

Fatboy_NSS

At the very least the bank surely has to tell the customer what their monthly payment will be. If the customer agrees to this but then cannot meet the repayment then it isn't the bank's fault.