Are the banks and credit cards insured.

john_reid_2

Does anybody know if the banks or credit card companies are insured.
ie: if i go bankrupt with no assets or ability to pay a thing. Are they getting any money at all from anywhere, or do they just lose the lot. Does it mean that they can not recover administration costs from any where. Or do they simply claim it back from the government. In otherwords do they lose the money.

MicheH

Interesting question. I have no idea. All I know I might be £? indebt to them but in 12 years of repayments and interest charges I have near paid them anyway.

Would love to know what actually happens.

philnicandamy

well....most companies will sell the debt on at a much lower rate (anything from 10p in the £1) and regret to tell the agency your indeed bankrupt.....once the people who bought the debt realise this they'll hang around your OR's office in the vain hope your estate is worth something....in simple terms no assets no cash the banks or DCA's get ZERO

YamahaR6

Yet they're still making massive profits and still paying their senior managers bonuses despite the rising number of bankruptcies. Just shows how much they overcharge in interest/product fees/bank charges in the first place!!

debtinfo

Like every other business they make provision in their accounts for bad debts, for them its just part of the business that they lose a couple of percent of money owed to them. If you look at the financial info on the provident website, they expect about 30% of people not to repay, hence why the charge 150-200% interest

fiveyearplan

Just look at the interest you have paid over the years - it more than covers the debt.

debt_doctor

All bad debts are a writing down allowance against their tax liabilities. So the more bad debts the less tax they would pay in that financial year. Dont feel sorry for the banks they NEVER lose !

DD