Reckless lending?

quantic

happy_bunny wrote: »

Pre approved means you are allowed it if you want it. They have enough info from monthly CRA feeds to figure that out.

Pre selected means you still need to apply and be credit checked, I think.

Not reckless really. Is someone giving you a 10k credit card limit reckless? You don't have to use it.

I get what your saying, I just thought the ease in which you can make a huge decision is perhaps too easy. In the past I have had to jump through all sorts of hoops to borrow way less.

quantic

poppasmurf_bewdley wrote: »

I once got a letter from Readers Digest telling me they had a cheque ready and waiting for me. I would think the message you received has as much credibility.

While I typically agree, you can actually get the money in your account in about 10 seconds if you click two buttons, as a friend of mine has used the barclays loan facility within the app. Its pre-approved not pre-selected.

quantic

Monkeyballs wrote: »

In the past I have received pre-authorised loan offers which I've taken advantage of and everything has gone through fine!

It wasn't a great idea LOL as I'm in a DMP blah blah blah but it was a genuine offer...

I don't think that it should be less convenient, I just don't think it should be offered unless you enquire into it first though.

MB

This is what I was kind of getting at. Fair enough offering these deals if you enquire about them or go onto the website looking. But to offer the way they seem to be doing it in the app may tempt people who shouldn't be getting a loan.

quantic

Horseunderwater wrote: »

They do the same with credit cards. Yes it is marketing, but OP would still get that amount, maybe not a great rate though.

4.7% seemed pretty decent to me.

BillJones

quantic wrote: »

I get what your saying, I just thought the ease in which you can make a huge decision is perhaps too easy. In the past I have had to jump through all sorts of hoops to borrow way less.

It's just targeted advertising, such as you may get for a car, a holiday, or a new housing development. I was "invited" to silverstone this week by McLaren, who wanted £5,400 off me for the privilege of having some fizzy wine in a tent, and the advert you were sent is really no different.

~Brock~

quantic wrote: »

I get what your saying, I just thought the ease in which you can make a huge decision is perhaps too easy. In the past I have had to jump through all sorts of hoops to borrow way less.

Your conundrum appears to revolve around the fact that because you appear not to trust your own decision making abilities then others should not have similar convenient, technology driven offers made available to them?

I, as a 25 year Barclays customer, have similar offers made to me. I tend to regard them as a statement of their opinion of how I run my account with them, despite them not knowing everything about my finances elsewhere. It's never, however, prompted me to suspect them of irresponsible lending.

If they were making such offers available to every single customer then fair enough, but I very much doubt that is the case.

Monkeyballs

If you sign into your account and you see a message saying you can borrow up to X amount if you want to then it gets you thinking about what you could buy with it, what use you could put that money to...

That suggestion is a pretty powerful tool for banks to use in my opinion so why offer it unless they want you to take it? It should be on enquiry only.

I'm in no way saying it's irresponsible lending if the customer then takes the loan but why wave it in your face?

MB

BillJones

Monkeyballs wrote: »

That suggestion is a pretty powerful tool for banks to use in my opinion so why offer it unless they want you to take it? It should be on enquiry only.

Are you opposed to advertising in general, or is it just banks who should not be allowed to advertise what they sell?

You can pick a whole list of things that people should not spend money on, from fatty foods, through beers, to the national lottery, yet for some reason people keep picking out finance as being the one that should be censured.

I'm not sure on which criteria an advert for a £70,000 Jaguar sports car is OK, but an advert for a loan to buy it is not.

quantic

Monkeyballs wrote: »

If you sign into your account and you see a message saying you can borrow up to X amount if you want to then it gets you thinking about what you could buy with it, what use you could put that money to...

That suggestion is a pretty powerful tool for banks to use in my opinion so why offer it unless they want you to take it? It should be on enquiry only.

I'm in no way saying it's irresponsible lending if the customer then takes the loan but why wave it in your face?

MB

This is exactly what I was getting at. Obviously it comes down to self control, something which I have lots of so I don't personally regard it as an issue, I was just suggesting that it is perhaps too unsolicited.

quantic

BillJones wrote: »

Are you opposed to advertising in general, or is it just banks who should not be allowed to advertise what they sell?

You can pick a whole list of things that people should not spend money on, from fatty foods, through beers, to the national lottery, yet for some reason people keep picking out finance as being the one that should be censured.

I'm not sure on which criteria an advert for a £70,000 Jaguar sports car is OK, but an advert for a loan to buy it is not.

Its not an advert, its a pre-approved offer, which I would literally have in my account within seconds. Slightly different in my opinion. I don't know, maybe its just me, but having the ability to completely change my financial outlook within seconds with very little barriers could cause issues for some.

I've always felt that there needs to be a little more to it when borrowing such large sums, much in the same way that it is now a requirement for a mortgage broker to talk through your finances rather than just look at your income etc.