Just A Thought! isnt it a bit backward

bluekaw

When credit card company's find out your having trouble meeting the repayment, these increase your interest rate, making it even worse

surely you have to question there sanity at ever wanting to get the money back!!!!! no wonder so many people feel forced into a corner, with so many disasterous outcome's

ok people are no :A angels, but why make a problem worse before you've found a solution, it really ticks you off at times:mad:

sorry

Rant over

RAS

They are pricing risk and when you cannot pay the money back, they want as much as possible before things go belly up. They now know you are a bigger risk, so the rate inceases.

mr_roll

I know exactly what you mean. I had an overdraft, that I had been shrinking slowly from £2000, when I had reduced it to £1050 the bank said "Oh we've found some bad debt on your credit rating and we're going to take this away in a few months" oh and we'll put the intrest up for you too. So I'd end up paying about £40 a month in interest!! and bank charges for going over my overdraft limit.

It came at a bad time for me and I just didnt have the money to pay it off.

So I called up the bank, went through a LOT of departments and when I finally did get through to the correct people they were very helpful. I think her name was claire. But I managed to arrange a payment plan and I also signed up for a added value account.

This was a good plan, it cost me £17 a month for the account which gave me the same cover as AA membership I already had (for £16 a month) and all types of insurance and a lower interest rate on the overdraft. I have a few more months till thats paid off now and one debt will be paid off at the start of next month too.

I'll be out of 2 major debts in december. Which is great way to start a new year. But its been stressful and a lot of sleepless nights too.

Deep_In_Debt

No brainer sometimes.

My ex ended up going BR - he'd been paying creditors without fail what he could afford and at this point would have almost paid his debts off but because of their abuse and their refusal to accept his repayments and lumping on interest and charges, he went BR as he had no choice it was just impossible, so they get very little.

Their loss.

DevonGirl

In the words of Bob Hope... "a bank is a place that will lend you money if you can prove you don't need it"...

yellowduck_2

I agree with this, I struggle to understand why they do it, I know that if you get into debt you have a duty to pay it back but I've never understood why they then hammer you even further into the ground with high charges, missed payment charges, harrasss people with phone calls, nasty letters etc. I'm not saying that they are all terrible, personally I have found Tesco C C fine with me, but let's face it, me making reduced payment while I get back on my feet after a long period of illness and try to find a job during a recession, is hardly going to bring Tesco to its knees

Mikeone

It has bothered me for years that the banks' entire business system is based around exploiting those with the least to give. I know its not some shadowy conspiracy –it’s a clear and well-established business model, but it is unfair and exploitative all the same.

The issue of setting prices according to risk is true, but this is only part of the story. Take bank charges for instance. Those who are least able to keep afloat end up being charged the most, and ultimately pay several hundreds (if not thousands) of pounds to maintain an account. At the other end of the scale, a bank’s wealthier customers will be invited to open premium accounts with benefits (such as a relationship manager and better credit interest rates etc), for a token fee which is actually a mere fraction of the amount being charged to their poorer fellow customers.

In my experience, relationship managers would actually waive any additional service charges for their clients (who could genuinely afford them), as they ‘were too valuable a customer’. The irony of course being that such a personal intervention would perhaps be the only time that bank charges genuinely cost the company a few quid to process!

I don’t mean to rant –I’m trying to remain focussed on working my way out of debt by keeping positive, but I’m appalled at this continued practice (imminent ruling on bank charges notwithstanding), and I am disappointed that our politicians did not take this issue on when they baled out the banks. Hopefully, the continued success of forums such as this one will help ordinary consumers demand a higher standard of practice from these venal institutions.

bluekaw

i agree, mike one, maybe one day they'll have a clue without us telling them what is oure common sense

LandyAndy

bluekaw wrote: »

i agree, mike one, maybe one day they'll have a clue without us telling them what is oure common sense

I agree.

Absolutely shocking that people who manage their finances properly are rewarded with low interest rates and no bank charges while profligate idiots p1ss money that isn't theirs up the wall and then get charged for the privilige when they can't pay it back.

And for anyone who thinks I don't understand http://forums.moneysavingexpert.com/showthread.html?t=1211021&highlight=

Quit moaning and start working on paying back what you owe.

MrsTinks

I get the argument from both sides - it's silly forcing people already struggling into worse debts which in turn may result in them having to declare bankruptcy - on the other hand the agreement was in place and the debtor broke it and the bank simply took away the nice favorable deal it had hitherto been providing - not something it's under any obligation to provide!

It's easy to blame banks - and yes to a degree I think their dealings are immoral - but ultimately we as debtors (myself included) borrowed and spent this money - some then failed to repay it in accordance with the rules and contracts and although counter productive in some cases the bank then applied the penalties... after all it will now cost it more to get the money off you, it may never get it all, and it will have to apply a lot more man hours to do so.
Is there an easy solution? No not really... There are still redundancies and people who are unemployed who through little fault of their own cannot repay the debts they have, but on the other hand - the bank didn't fire them or tell them not to take out income protection insurance... Why should they not apply the clauses you agreed to by taking out the account and debt?