Sensible lending !!!!!

ravenk

Would you call this responsible lending.

My wife works 25 hours per week and earns minimum wage. Just a job to get her out of the house more than anything.
So HSBC send her a pre approved application for a credit card offering £8000 credit. Interest free for 12 Months !

We put it in the shredder.



:eek:

Reminds me of a news article I saw a few years ago. It was about drug dealers offering young people cheap drugs to get them hooked. Then they would close in and charge the full rate and bleed them dry.

tom188

It is the people who are given the credit who are irresponsible, not the banks.
I for example manage a combined credit facility (of o/ds and c/cs) that is six figures in size and over 5 times my net salary. I have no problems with it.

ravenk

Just seems to me that big banks are taking bigger risks with lending than ever. Makes you think ...now how do they cover these risks. Of course by rip off charges ...to those they can recover money from.


Still as you say its up to the individual who borrows.

Suppose the drug dealers say the same in court. No one made them buy and take the drugs ...we just supply the market.

ravenk

Maybe we should hold a competition.
Who can earn the least and be offered the highest credit limit on a card.

RCA_2

ravenk wrote: »

Would you call this responsible lending.

My wife works 25 hours per week and earns minimum wage. Just a job to get her out of the house more than anything.
So HSBC send her a pre approved application for a credit card offering £8000 credit. Interest free for 12 Months !

We put it in the shredder.



:eek:

Reminds me of a news article I saw a few years ago. It was about drug dealers offering young people cheap drugs to get them hooked. Then they would close in and charge the full rate and bleed them dry.

you sure it didn't say 'up to 8k'. if not thats pretty shocking

bengal-stripe

That ‘pre-approved’ bit of the offer is just an advertising gimmick.

The application would have had go through the same channels of approval and could have been turned down, if the underwriters didn’t like the details. Even, if approved, the credit limit would have been based on the information submitted in the application form.

sicker

Yes, pre approval just means approval to apply for the card, not that you are going to qualify for one.

John

ravenk

Well to be honest ...where I said we put it in the shredder....

I told my wife to fill in the details. She did and approx 2 weeks later we had a HSBC card arrive in the post. She has not activated it.
Yes they did give her a £8000 credit limit !
We have not used the card yet ..She will just cut it up I think.

In real life we both use my Amex platinum card. I collect the points and turn t
them into air miles. Plus we get free travel insurance etc ...well when I say free ..I imagine I have paid for it 5 times over via card fees etc .

The application never asked about me ...or my earnings.

I earn in excess of £50K per year and when HSBC gave me a card a year ago , they only gave me a credit limit of £5000 !
I also never in the end used the card.
Still have it however.

Still think that HSBC dont show any responsibilty in lending. No wonder so many people are going bust.

jamalfatty

Although they didnt ask for any of your details, the credit agencies would know your wife has a financial link to yourself which could be why she was granted a relatively high limit

ravenk

So in the crazy world of the Banks. They link her to me. How do they know we are in happy relationship ? Maybe we are about to split up.

Does Bill Gates (Still richest man in world I think ) have a poor brother ? Wonder what his credit rating would be ?

jamalfatty

Any person you have a financial link with is listed. They dont know you have a happy relationship obviously, but would imagine they assume that as you are living with your wife then it must be at least amicable.

It makes sense for them to grant credit on spouses/partners income, do you think footballers wives as an example who don't work at all would get given a tiny limit as their income is negligible?