Where do our debt problems really lie???

sammy115

Bank of Scotland have a delightful system (or maybe they haven't anymore!) that rang you automatically. When you answered if an operator wasn't available to take your call it cut you off. When we first got into financial difficulties this happened about ten times a day. We went to the police as we thought someone was stalking us!! When someone did answer they would have to read the notes before they even had a clue who was calling.

Despite explaining our situation and our circumstances they put you on a cycle of repeat calling. It was appalling - and to add insult to injury when I tried to call and pay the operator refused my payment saying I had to send in a SOA before he would accept my payment.

I got into my own mess but even when I was trying to sort out my debts many of the companies I rang offered me secured consolidation loans. The hard sell was continuous and quite wearing - the temptation to take them up on the offer was enormous at quite a vulnerable time. I still fight temptation now as it would be far easier to get a secured loan and pay off my CC's and have one low payment but I know I would spend again.

Sea78

Zulu_Dawn wrote: »

What would you do if you wanted to get hold of somebody and they weren't responding. In a work situation, I have tried people once an hour if I think they are there and I need to speak to them. I wouldn't always leave a message and I would stop once I had spoken to them.

If a DCA phones me, we have a conversation and agree a position, I would be irritated if they phoned again that day. I would clarify to them our previous conversation and ask if they need anything further, A third call would then result in my escalating the call to their manager or other appropriate customer service outlet.

I agree with several of your points, about takig responsibility for our debts and our spending that got us there - or unfortunately for some, really terrible circumstances that got them there - but I am one of those people who has always been in touch with the financial companies. I wrote to HSBC when I was a student apologising for being over my overdraft and outlining how I intended to pay it back and by when.
When my circs changed and I found myself unable to pay all my debts - I contacted CCCS, wrotes letters to my creditors and answered all phone calls. However, HSBC have now started plauging me with phone calls, which I did answer to begin with and asked them not to call again as my ability to pay them hadnt increased in the last 24 hours - they responded that because I had signed the loan agreement, it was their right to ring me whenever they wanted. Despite recommending me to ring CCCS in letters, they then tell me that the CCCS are stupid, have no idea of what my responsibilities are etc.

I think that it's great that I can come on here and rant about the !!!!!!! who do this and that and complain about the banks and companies who when I originally asked for help said they couldn't but warned me against consolidating with a dodgy tv company!! Thanks!!

The fact I am able to rant away on here means that I am not so likely to do so to those people on the phone and also I can be less emotional after a nasty phone call etc with my kids.

So, yes, I face up to my mistakes and am fully committed to paying it all back but I am bloody angry that the situation in this country allows people to get into huge financial states - especially in bad circs (not just spending too uch like me!).

Anyway - sorry for the bad spelling!

Sea x

Zulu_Dawn

When my circs changed and I found myself unable to pay all my debts - I contacted CCCS, wrotes letters to my creditors and answered all phone calls. However, HSBC have now started plauging me with phone calls, which I did answer to begin with and asked them not to call again as my ability to pay them hadnt increased in the last 24 hours - they responded that because I had signed the loan agreement, it was their right to ring me whenever they wanted. Despite recommending me to ring CCCS in letters, they then tell me that the CCCS are stupid, have no idea of what my responsibilities are etc.


I read this with astonishment. If we take the premise that all they care about is making as much money as possible, I cannot see how this sort of behaviour meets that criteria.

Clearly banks have a wide array of legitimate weapons they can use. I just don't understand why they would call you 24 hours apart unless it was an administrative error or there had not been a satisfactory resolution to the first call.

Did you make a complaint about this kind of harassment and if so, did this treatment stop?

Have I just been lucky so far and this kind of behaviour lies ahead, because frankly it terrifies me? I have always felt that by being fair and reasonable, I will broadly get the same treatment in return.

ZD

PS For what its worth my unsecured debts are well into six figures. however I am in work, have a good salary and am paying around 0.5% of the outstanding balance each month. Perhaps this is the reason why they are seemingly being more reasonable with me.

GettingThingsDone

Hi ZD,

Maybe they have different tactics for different 'profiles'. We know they are big on profiling for lending, so it would make sense that they adjust their collection techniques accordingly.

gtd

Shineyhappy

If you are an intelligent person who just keeps borrowing for no reason other than greed then yes it is most of the time your own fault for borrowing to go on holidays or buy designer goods or for leading a champagne life style on a budget beer salary.

However there are lots of people who borrow responsibly to start with and then unforseeable things happen, getting ill without your insurance recognising the condition, loosing your job without warning or something else and then the banks really should show some understanding but usually they dont.

I have also said several times on this forum that I feel people should be given credit interviews for the first time they apply for a credit card/loan etc.

I personally know a woman who is putting it tactful well bellow the average level of intelligence and married to a similar guy. They have managed to get themselves into a huge amount of debt. Quite frankly this woman doesnt seem to grasp that they dont give you money it is a loan and it needs to be paid back. She gets sent a credit card application form thats been personalised and with special offers and she doesnt understand the implications of it. She is now in a real mess and tbh I think in her case it was completly irresponsible lending.

Seaxwyn

Hi shinyhappy

I was interested to read your post as I have just received a mailing for a Capital One credit card that was clearly designed to appeal to someone with the mentality of a child.

It included a nice "toy" credit card, looking just like the real thing with my name on it. The letter explained that you could choose the picture on your card, and you did this not by ticking a box but by peeling off a sticker and sticking it onto the form. The pictures were mostly animalsL a leaping tiger, cuddly puppy...

More space was given to explaining the choice of picture business than the terms of use, or the 39% APR.

I was shocked - I have just closed my Capital One account when the 0% offer ended - why would I want now want one at 39%?

They must bank on people being really thick.

Shineyhappy

Hi Seaxwyn,

Yep that is really scary. I really hope my post didnt come accross as rude or being offensive. But there are some people who truely do not understand what they are getting in to and all they see are pretty cards and free gifts or cash back offers on loans.

I am an intelligent person and I have suffered from stupidity and greed -hands fully up in the air on this and I knew the implications of only paying minimum payments so I really do think it is totally irresponsible to lend money to people who just dont get it.

Also the second I turned 18 I was showered with loan and credit card offers! I was still at school and pretty naive. I dread to think how much debt I would be in if i had taken them up on their offers! The only reason I didnt was because I knew my mum would kill me if she found credit card statments addressed to me.

Lucy1982_2

I agree I got myself into this and will get myself out of this.

However, banks are to quick to offer loans/credit cards. When I was 18 and just about to go to uni I was offered a credit card which I refused (I still don't have one) as a student there was no way I would be able to pay it, and the debt would just increase.

When I consolidated, they didn't take away my OD (and I wasn't clued up enough to ask for it to be removed) so I ran it up again (My own fault) The same happened when I took out another loan in Feb 07. Luckily this time I know what I am doing and have started to cancel/remove things once they have been paid off.

But some companies are responsible. I have a friend who arranges mortgages and he had a couple ask for a mortgage which would have been so much over their annual pay that a single percentage rise would have crippled them. But some where they would had got the mortgage.

So I would suggest that while we have all accepted the credit, perhaps you should get to a limit where you are not offered any more. I mean when I cancelled one of my store cards they actually tried to offer me a bigger balance!!! They didn't even ask if I could afford it, they just wanted my custom. Needless to say the card got canceled and cut up.

Snaggles

Some lending underwriters are fairly responsible

But I know what you are saying, I know someone who has Shopacheck or whatever they're called turning up on her doorstep all the time, because if they catch her when she's in on her own, they know they can persuade her to take out a loan (she once told me they said that if she didn't need any money at the moment, wouldn't it be nice to have a couple of hundred tucked away in her knicker drawer 'for emergencies'.....she paid some stupid apr for this!!).

Gemmzie

Personally I don't regret most of my debt, the rest is from picking a bad car so that can't really be helped.

People as a majority don't understand finance - that's where the problem lies. They don't realise that catalogues charge 29% APR which means you are effectively adding a third to the price, for example.