MSE News: Ombudsman recruits extra staff to beat PPI logjam

[Deleted User]

timmybear wrote: »

What I was getting at was that in general there seem to be many people around who are too keen to hand over their money (or else borrow money) without taking the time to think it through.

The easy credit culture of the last decade or so has certainly contributed to the current state of the world's economy. Many warned this was likely to happen, but it fell on the deaf ears of certain businesses which saw an opportunity for easy (and massive) profits.
You keep banging on about responsible borrowing but there is an equal requirement of responsible lending.

timmybear

Moneyineptitude wrote: »

The easy credit culture of the last decade or so has certainly contributed to the current state of the world's economy. Many warned this was likely to happen, but it fell on the deaf ears of certain businesses which saw an opportunity for easy (and massive) profits.
You keep banging on about responsible borrowing but there is an equal requirement of responsible lending.

Of course I do, you are quite right. To me, there is no difference between a leaflet offering a loan or c/card shoved through my letterbox than there is a menu from a local restaurant or a Betterware catalogue. Its about advertising what is avaliable, it is not making anyone do what they then go on to do. Shops put their goods on display to 'tempt' the customer, and miney lenders have done the same. There is also a good argument that spending is needed (though maybe so in moderation) to keep the wheels turning.

When I have done balance transfers from one card to the next, the mass repayment of one card has invariably bumped-up my credit limit. At one time of the day I was just about able to manage what bit of money I had, and MBNA upped my limit to £12K. That didn't mean I felt compelled to go and spend it, and in fact I am not lying when I say the thought of being able to just go a blow that amount made me feel physically sick as I'd never be able to pay it back.

I do disagree that it was within the last decade that credit became 'easy', because credit & HP has been around since the war...if anything, the 1950's was when it became much easier. What could be easier than standing in the Electricity Showroom waiting to pay your bill and seeing all the things you could buy for just £X a quarter, added to your bill?

I think it would be useful if money could be invested in educating people of all ages about managing money, as it seems such a difficult subject to grasp. I know I've struggled and learnt certain things the hard way.

[Deleted User]

timmybear wrote: »

I do disagree that it was within the last decade that credit became 'easy', because credit & HP has been around since the war...if anything, the 1950's was when it became much easier. What could be easier than standing in the Electricity Showroom waiting to pay your bill and seeing all the things you could buy for just £X a quarter, added to your bill?

It became extra easy with the sudden explosion of store cards etc which almost anyone could be accepted for. This wasn't the case in the 1950's

sillybear wrote: »

I think it would be useful if money could be invested in educating people of all ages about managing money, as it seems such a difficult subject to grasp. I know I've struggled and learnt certain things the hard way.

I'd agree with this. I'd even go so far as to suggest that domestic financial management should be part of the national educational curriculum.

timmybear

Well I can't argue with your comments about the storecards. I am not sure I agree that 'anyone' could get them as I recall well a good many people getting declined in my time promoting in-store finance, but I do take your point.

But even then as an 18year old boy (as I was when I first told to sell cards as part of a poorly-paid retail position) I could never understand why anyone would want a card with such high APR and which tied the customer to just one or two stores?

It is this whole thing which worries me, as no proper training was ever given to store staff, and I don't think the personal bankers in banks and building societies faired much better either. This is why I think a huge burden of responsibility must rest on the consumers, as even though the 'big banks' were behind it all, the poor untrained beggar working at the sharp-end is the one who seems to be getting the blame (so to speak at least).

[Deleted User]

tinnytear wrote: »

It is this whole thing which worries me, as no proper training was ever given to store staff, and I don't think the personal bankers in banks and building societies faired much better either. This is why I think a huge burden of responsibility must rest on the consumers, as even though the 'big banks' were behind it all, the poor untrained beggar working at the sharp-end is the one who seems to be getting the blame (so to speak at least).

I think you sort of have that about face. It's the responsibility of the lender (surely?)to ensure adequate training of staff selling it's products. It's hardly the consumer's fault if they are approached by a spotty youth and offered a "free" £10 voucher if they sign up for a store card (which they aren't obliged to use, but has an APR of 27%!)
Retail staff were required to sell these cards whatever their feelings on the matter and, of course, a lack of training investment just meant higher profits.

timmybear

Moneyineptitude wrote: »

I think you sort of have that about face. It's the responsibility of the lender (surely?)to ensure adequate training of staff selling it's products. It's hardly the consumer's fault if they are approached by a spotty youth and offered a "free" £10 voucher if they sign up for a store card (which they aren't obliged to use, but has an APR of 27%!)
Retail staff were required to sell these cards whatever their feelings on the matter and, of course, a lack of training investment just meant higher profits.

I'll have you know that I was never spotty :rotfl:We had to scrub up well at BHS :A

Any training was done by our store. I worked for two stores in my time where I had to promote / offer finance. One was the BHS storecard. The other was in-store finance on home appliances (but for a dedicated retailer with many services in it's overall portfolio, not one like Brighthouse or Perfect Home, selling only furniture and appliances with exclusive 'terms and conditions' etc). Again, 'training' was simply word of mouth from our immediate bosses & managers. I do discount much of that role though as virtually all finance was interest free and therefore straight repayments (we didn't even deal in 'Buy Now, Pay Later').

So, as far as BHS went, I do recall being told to mention the APR if asked (it was on all the advertising which was all over the shop - literally), and we had very, very brief explanations as to what PPI was, and so on. Essentially, we were told the nuts & bolts, and to encourage people to read before they signed...no comment on my part there, other than to say the small print was very small and the shop generally very hot and busy...you didn't want to linger, put it like that.

Most of what little training we had was on making sure the customer met the criterior in order to apply for the card in the first place. That was always the priority. And as I already said, it was all about the store. I don't recall who the lender was and I doubt I even knew back then.

[Deleted User]

timmybear wrote: »

Most of what little training we had was on making sure the customer met the criterior in order to apply for the card in the first place. That was always the priority. And as I already said, it was all about the store. I don't recall who the lender was and I doubt I even knew back then.

Well, by the "lender" I meant both the store (acting as a paid intermediary) and the actual company lending the money. I still work in retail and no one mentions store cards now (although finance is still an option for the more expensive items).

timmybear

Moneyineptitude wrote: »

Well, by the "lender" I meant both the store (acting as a paid intermediary) and the actual company lending the money. I still work in retail and no one mentions store cards now (although finance is still an option for the more expensive items).

I can't help but think that if in todays world a reatiler had made the demands on the staff to promote cards like they did back then, then all hell would break lose. Maybe they do? I don't know, but as you said, storecards are not popular now...I see many 'store' cards are now actually a Mastercard or Visa. And no, I don't recall the last time I saw one being promoted.

Of course I know it's a different subject but not unrelated, for three months I did some weekend work in a Comet store last year (it was not for Comet, it was promotional work for a manufacturer and I needed the extra money to help with my plans to get me futher out of debt :T) and my goodness me were those poor sales staff under pressure to sell the extended warranties. I'm not going to debate warranties of course as it's all subjective (I've won on some policies and 'lost' on others where i never had to claim), but the pressure on the staff I worked with was IMO disgraceful.

oldvicar

Amazing to think that one man :money:has been the protagonist in the creation of this PPI reclaiming industry.

The admin costs alone look to be over £1billion :eek:, but at least its creating thousands of temporary jobs. :j

~Brock~

oldvicar wrote: »

Amazing to think that one man :money:has been the protagonist in the creation of this PPI reclaiming industry.

Don't kid yourself. There were plenty of ambulance chasers already geared up to feed off this well before Martin popped his head up.

oldvicar wrote: »

The admin costs alone look to be over £1billion :eek:, but at least its creating thousands of temporary jobs. :j

...I would prefer to see this country actually manufacturing stuff and therefore creating long term sustainable jobs for a change instead of seeing menial jobs being created for people to run round in circles trying to claim off each other.

The Chinese must be pi$$ing themselves laughing :rotfl: