10 Myths about Bankruptcy

fiveyearplan

Yep, when you are desperate that £2,000 does look like it can solve all your current problems!

blind-as-a-bat_2

Emby wrote: »

Hmmm...... The person who takes the loan is as irresponsible as the bank who lends easily im afraid. Yes the banks had been lending way too easily but the person who takes that loan/credit card should be fully aware of their own financial position.

Taking responsibility is is an essential adult trait and if people keep passing the buck or blaming other institutions/individuals for their own circumstances they never learn.

Very very important!

lee316 wrote: »

Talking about irresponsible lending, couple of weeks ago I've got summoned by the bank to go and see one of the managers to talk about our joint account. I went by myself, as hubby was at work. It went something like this: bank manager: see you have councelled a few direct debits, mainly mortgage and secured loan
me: (whole sob story about being made redundant, being in arrears on mortgage, hubby low wage earner blah blah, all honestly and kept to the facts)
bm: you had a couple of dd's that came back as insufficient money in the account
me: can you tell me why do you let dd's out when you can see we haven't got money to cover them, surely you can refuse to let them out
bm: I cannot answer that
me: but than you charge me a fee for returned dd, which puts us further in debt
bm: you have got some bank charges due on 1st, in the sum of £96, we want to help you out, as you have banked with us for years, how would you like us to do that, anything we can do to help?
me: waive the charges
bm: we cannot do that
me: give me £100 overdraft
bm: sorry, credit rating is bad, we cannot do that
me: so what can you do to help?
bm: well lets see, your credit rating is bad, but your husbands isn't so bad hmm
Isnt bad? Are they having a laugh?
And than came the bombshell:
bank manager: WE CAN GIVE YOU A £2000 LOAN, WOULD YOU LIKE THAT, THAT WOULD HELP YOU OUT

!!!!!!, After I told them that house will get repossesed, we haven't got a penny to rub together, they see how bad things are, and they offering us 2000 pounds?

Now how many people would be clatching to that straw? If your fridge is empty and there is two weeks left till payday, and you got exactly £27.50 left to last you untill then, what would you do? I know we did in the past, another contributing reason as to how we ended up so much in debt, when you are desperate you do things you normally wouldn't, don't you, and someone waives 2000 pounds in front of your face like that you take it.

Well needles to say I declined her offer, and proceeded to tell her exactly what I thought of her money and the bank and where to shove it, they weren't going to put me further in debt this time.
And we made that £27.50 last, and nobody starved. It can be done.

You where saying Emby

Taking responsabilaty is a two way thing, i accepted 50% for the mess i got in, but how can you defend a bank that let me increase my borrowing by £10,000, knowing i was ill, knowing i was not earning.

Yes i was wrong to accept it, but in deffence i was off my head on some pretty strong PRESCRIBED drugs at the time:rolleyes:

I get sick of saying this, while your not entirly wrong, every situation is differant, its not that simple to blame the debtor OR the bank's.

Bleddry

Of course we should take responsibility for our actions, and desperate people will take desperate measures. But the banks especially, were supposed to be respectable institutions you could trust with your money and for financial advice. After all, this is meant to be their area of expertise. However, their reckless attitude, and pure greed and avarice, that has come to light of late, has caused many families and businesses in this country, to face a very grim future indeed.
Also, giving young people mortgages they can't really afford, and encouraging them to take out credit cards etc - I'm sorry, but I just don't think you can say that these people are 'as irresponsible as the bank' - the banks should know better - but they are more interested in hitting their targets, and taking ridiculous risks with the taxpayers money, whilst rewarding themselves huge pay outs for what they have not achieved. How can future generations learn from this kind of example?
There are some irresponsible borrowers - granted, but I'm afraid I don't agree with your sweeping statement, that infers they're all irresponsible.

Bleddry

Oh... and then there was my first ever mortgage adviser experience, who advised me to 'round up' my salary so I could qualify for the lending. Could this respectable looking chap all suited and booted be right? I was only 19, and everyone kept telling me how important it was to get on that property ladder - so I did. Three times my imaginary salary meant I could buy my first house - still, I'll learn!!

fiveyearplan

When banks offer to lend money to people as described above (ill and not working, not having the capacity to pay back etc) knowing that they will either face difficulty or not be able to pay it off - they do it because

1) they get commission on every loan they sell so they will overlook little indiscrepencies
2) they make so much on bank charges and interest that they can afford to write off a considerable amount of debt each year and this is factored into their lending practices.

dollparts

fiveyearplan wrote: »

Lets not start a slanging match! Yes it is important people take responsibility which is why some people choose to go bankrupt. I agree you can't put 100% of the blame on the banks who lend irresponsibly just as you cannot say all bankrupts are 100% to blame. There is a whole myriad of reasons people go bankrupt. We are not here to judge.

I will consider myself wel and truly put back in my box!

Little miss hothead is going to sit in the naughty corner......

fiveyearplan

Slanging matches don't do anyone any good and can be very damaging for newbies - it could scare them away and prevent them from getting the help they came here for.

xmaslolly76

lee316 wrote: »

bank manager: WE CAN GIVE YOU A £2000 LOAN, WOULD YOU LIKE THAT, THAT WOULD HELP YOU OUT

So your credit rating was so bad that they cant offer you £100 over draft but they can give you £2000 loan. Where is the logic in that if they are worried about you paying £100 backwhere do they think you will find £2000 from. The bank manager wants shooting. Glad to here you had the common sense to say no and tell them what you think of them the idots :mad:

fiveyearplan

They make commission on the loan but get nothing for the overdraft.

Bleddry

I see, so when we deal with banks we should view them in the same dim light that we view all the other types of loan companies and not trust them at all to behave in a responsible fashion. I can see that was my mistake. I thought they were meant to be upstanding pillars of the community, like teachers, and doctors. They are more like politicians.