mortgage co say charges are not illegal yet!

Mr_helpful

so arrears and unpaid bills are not the same and if the arrears were caused by a bounced cheque that might be the same as well.
Ive never had bank charges so I wonder why that is? Could it be I dont buy things I cant afford or that I go without when times are hard. You dont seem to get charges unless you are overdrawn do you. Tell me why I should subsidise those who do.

COPPERHEADJACK_2

You are all assuming that when people get into debt it is their own fault.
I have also been in the position of being in arrears with my mortage not because I was a bad money manager but because I lost my business due to my pub company not completing work on the day that the Enviromental Health told them it had to be done. Hence the pub Was served with a notice and closed down.
I luckly was not charged for being in arrears with my mortgage and paid the arrears off in full within 12 months.
And as for the people that are not in arrears suffering because of the people that are in arrears stop talking a load of bull it is not you that gets the extra charge it is the people that are in arrears if you are unhappy with your intrest rate then talk to the Bank of England after all they are the ones in charge of the intrest rates going up 3 times a years.

But never mind I hope you remember what you have said on this topic if you do ever have money troubles and don't ever say that you won't as you NEVER SAY NEVER just look at the amount of people going bankrupt.

kenshaz

Mr_helpful wrote: »

so arrears and unpaid bills are not the same and if the arrears were caused by a bounced cheque that might be the same as well.
Ive never had bank charges so I wonder why that is? Could it be I dont buy things I cant afford or that I go without when times are hard. You dont seem to get charges unless you are overdrawn do you. Tell me why I should subsidise those who do.

I personally have never paid a bank charge in my life ,but it does not prevent me from understanding the ethics of this site and that unlawful charges have been applied by banking institutions and some have the right of reclaim.

COPPERHEADJACK_2

Mr_helpful wrote: »

so arrears and unpaid bills are not the same and if the arrears were caused by a bounced cheque that might be the same as well.
Ive never had bank charges so I wonder why that is? Could it be I dont buy things I cant afford or that I go without when times are hard. You dont seem to get charges unless you are overdrawn do you. Tell me why I should subsidise those who do.

Please could you tell us how YOU subsidise the people that go overdrawn or into arrears???????
And yes I agree that if times are hard go without but people who do not have a wage coming in for some reason (like loosing a business) or another find it very hard to produce money out of thin air to pay mortgages and other commitment that they had when they had money coming in.
that is what is so good about Britain when people are having a hard time they all club together and help each other!
Lets just hope you always have money coming in and you never need to be SUBSIDISED

jamesd

The new level of charges is supposed to be the maximum the likely cost can be for the banks. That means it is supposed to be fully covering the costs of serving those who are charged the fees.

Those not paying fees aren't going to be paying for them, they are going to be losing the subsidy they have been getting from those who pay the fees.

Being unhappy about not being subsidised is fine but those no longer providing the subsidy have ample reason to be unhappy about being told it's wrong for them to stop doing so.

regularsaver1

absolutebounder wrote: »

good people subsidise these people in arrears. The lenders put aside millions to cover bad debtors. The we hear all this whinging about the fees which means if fees are given back we are subsidising them again. ~Pity they dont default on the sky TV or give up the fags

unfrotunately sometimes i do see people that say they can;t pay their charges or feed their children, but then have direct debits to sky, and you can see debt card transaction left right and centre in pubs

its about priority

mortgage should be the first priority

Regarding this post we don't know the situation - but 20 months arrears is a long time, so that is understandable for the charges

toonfish

regularsaver1 wrote: »

unfrotunately sometimes i do see people that say they can;t pay their charges or feed their children, but then have direct debits to sky, and you can see debt card transaction left right and centre in pubs

its about priority

mortgage should be the first priority

Regarding this post we don't know the situation - but 20 months arrears is a long time, so that is understandable for the charges

I had clients who had fallen into arrears but taken 3 foreign holidays that year - incredible. There are some genuine cases, perhaps business failures, serious illness and the like but some do choose not to pay almost.

Mr_helpful

kenshaz wrote: »

I personally have never paid a bank charge in my life ,but it does not prevent me from understanding the ethics of this site and that unlawful charges have been applied by banking institutions and some have the right of reclaim.

Ive got othing against claiming unlawful charges but dont you think the banks should have redress against people who dont pay on time. much of the money (mortgages) is money the bank has borrowed. They still have to pay on time and they put aside large amounts of our money to cover bad debtors. That money doesnt come out of thin air you know.

You are all assuming that when people get into debt it is their own fault

It never is their fault at least not when you talk to the client. Thats the joy of Blame culture. Loads of people lose their jobs and still pay. Some had the sense to have insurance, some temp work. I swept the streets and worked in a factory for a few days when I lost my job. Guess what no arrears. No tv or car either but did have young family.

MortgageMamma

The only genuine cases of arrears I have ever seen are those of marital breakdown where the remaining partner genuinely cannot afford to sustain the remaining mortgage by themselves and the partner who has left will not fulfil their commitments. By this, I mean those people who have a high earning partner and very large mortgages

I was once in a situation where I got into arrears because my partner left me when I was pregnant. I developed pregnancy complications and had to give up work, My mortgage payment protection would not cover me because my illness was deemed pregnancy related, which was very unfair. I think I ended up three months behind but my bank took sympathy and capitalised the arrears until I went back to work when baby was born. It was a really horrible time.

So there are circumstances where people get into arrears that arn't their fault, but the banks have to make their money as helpful says, and sometimes life deals you a bad blow, and life isnt always fair, but you just have to pay what you owe, move on and protect yourself against such things happening again

kenshaz

Mr_helpful wrote: »

Ive got othing against claiming unlawful charges but dont you think the banks should have redress against people who dont pay on time. much of the money (mortgages) is money the bank has borrowed. They still have to pay on time and they put aside large amounts of our money to cover bad debtors. That money doesnt come out of thin air you know.

You are all assuming that when people get into debt it is their own fault

It never is their fault at least not when you talk to the client. Thats the joy of Blame culture. Loads of people lose their jobs and still pay. Some had the sense to have insurance, some temp work. I swept the streets and worked in a factory for a few days when I lost my job. Guess what no arrears. No tv or car either but did have young family.

The basis of problem was that the amount charged did not reflect the true
cost ,and therefore the banks had removed excessive amounts from the vulnerable.

Whilst I agree education in personal finance in some elements of society would make consumers aware of excessive marketing ,this site attempts to do that ,but I believe that fundamental budgeting should be taught in schools
and should not have to be a hard earned life experience.

A high proportion of users of this site are already experienced .possibly due to their working back-grounds,and they have a tendency to be unable to stand in others shoes ,because they have become accustomed to high incomes and are unable to perceive the difficulties of others.

Legislation is just beginning to get to grips with the extortionate rates that some lenders can charge in respect to consolidation mortgages,other countries have capped the rates.The situation is that some are unable to access the normal competitive rates and are forced to use extortionate lenders ,who offer high commission rates to those who sell to the desperate.
Some acquire debt because of choice ,others because of circumstances ,and some because of excessive marketing and extortionate interest rates described above.There are many reasons,from ill health to domestic break-down,I do not wish to judge or condemn or generalise,but perhaps support.