"Punishing" bankrupts

wolfers

I'm interested in why some companies appear to "punish" bankrupts by not offering them services or restricting their services.

I read on here yesterday that Virgin Media closed down someone's account when they heard they'd gone bankrupt. Why? What's the point of that?

As we all know, only the Co-op and Barclays offer banking to bankrupts? Why don't the others? Barclays won't give you a chequebook (I guess because that costs them money and they won't make any money out of you as a bankrupt, e.g. from lending you money) but they also won't give you online banking. Why not? That won't cost them anything. It seems punitive.

Now that I'm bankrupt my finances are in a much healthier state than they were. Instead of driving myself further and further into debt with crippling loan repayments, I'm now running a balanced budget. I've "learned my lesson" about debt and credit cards and I expect to become a model citizen when it comes to finances. Surely this makes me less of a risk as a customer. Certainly for something like cable TV, where there's no real possibility of borrowing money.

indebtinsussex

like we dont punish ourselves enough for going br

GEEGEE8

I was recently shocked to learn that Home Insurance cover can be affected if you have been bankrupt..! My policy doesn't mention it though luckily.

The thread came to the conclusion that it's based on the fact that if you can't look after your finances then you can't look after your possessions and are more likely to damage or be reckless towards something, or that you will make a fraudulent claim.

Utter rubbish! I've never purposely damaged anything in my life... never even made a claim on home insurance.

Makes you feel like a criminal.

indebtinsussex

GEEGEE8 wrote: »

I was recently shocked to learn that Home Insurance cover can be affected if you have been bankrupt..! My policy doesn't mention it though luckily.

The thread came to the conclusion that it's based on the fact that if you can't look after your finances then you can't look after your possessions and are more likely to damage or be reckless towards something, or that you will make a fraudulent claim.

Utter rubbish! I've never purposely damaged anything in my life... never even made a claim on home insurance.

Makes you feel like a criminal.

I thought that was what we were supposed to do now we're bankrupt and pure evil, I spent the evening yesterday especially smashing up all those high priced goods and 70 inch plasma tv that I brought so recklessly just so I could claim and make some money.

philnicandamy

Hmm for some reason insurers think we're an untrustworthy bunch!

(felt bad enough a few years ago after just going BR made our 1st EVER insurance claim in over 10yrs for an accident)

wolfers

My American friend says it's so different in the US where there's no stigma at all. The attitude is "you gave it a shot, things didn't work out, better luck next time".

CPJames19

wolfers wrote: »

My American friend says it's so different in the US where there's no stigma at all. The attitude is "you gave it a shot, things didn't work out, better luck next time".

...and we all wonder what caused the credit crunch :think:

curly04

I dont see this as Punishing bankrupts
I'm BR and as some of you know I've been to hell and I've still not got back yet.

However if I walked out of court, went and got myself a top of the range mobile phone on contract, or cable TV or this that and the other, what lesson would I have learnt

My ex was lets get this now, we never needed most of it, but it was top of the range or the lastest thing out, I have a good job and his wasn't that bad.

However most of this was sold for next to nothing to try and pay back the cards / loans / etc

And now when I do have a bit of spare cash and I go and get something its is special, I've work hard and saved for it.

I see it as a lesson, to make sure I never get into this situtation again.

You all might think I'm daft but this is how I feel about it.

Don't forgot these companies have lost a lot of money, would you borrow money to someone who never paid you back last time???

wok_boy

A little bit weird as by the time the BR comes off the credit file, by the nature of being BR and not being able to obtain credit, we have the best credit ratings out once the 6 years have passed. It's their loss of custom in the end.

Kaelin

Yeah and just to add insult to injury you have to declare that you have been made bankrupt if you inadvertedly work with contracts / money, because of course being bankrupt you must be a criminal out to steal other people's money....

milothewestie

curly04 wrote: »

I dont see this as Punishing bankrupts
I'm BR and as some of you know I've been to hell and I've still not got back yet.

However if I walked out of court, went and got myself a top of the range mobile phone on contract, or cable TV or this that and the other, what lesson would I have learnt

My ex was lets get this now, we never needed most of it, but it was top of the range or the lastest thing out, I have a good job and his wasn't that bad.

However most of this was sold for next to nothing to try and pay back the cards / loans / etc

And now when I do have a bit of spare cash and I go and get something its is special, I've work hard and saved for it.

I see it as a lesson, to make sure I never get into this situtation again.

You all might think I'm daft but this is how I feel about it.

Don't forgot these companies have lost a lot of money, would you borrow money to someone who never paid you back last time???

still bankrupts are punished on a lot of things well done for working hard and buying things but you cant really judge someone for getting a mobile phone,some of the companys have cottened on now and some of the contracts are as cheap as payg