Reckless lending?

Monkeyballs

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.

I have no objection to advertising at all... But I'd rather see an advert which asks you to apply not to accept.

I imagine a lot more people would be driving Jag's if the advert said we guarantee you a car if you come into our showroom today and worry about paying for it later LOL

It's a fine line I admit and all in the wording, many people would ignore it but there are bound to be some who will accept it just because the computer said yes!

MB

BillJones

quantic wrote: »

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 do hope that you never find yourself on a railway platform, where a split-second decision can cause issues such as your head coming off...

Adults need to take responsibility for their actions. Being presented with the opportunity to do yourself great harm happens tens of time each day. I genuinely can't see your objection to being offered a loan that you are under no obligation to take.

I understand that there is a tendency towards infantilisation in some sections of society nowadays, with people expecting the government to find them jobs, for example, and pay for their family holidays, but examples such as yours are still able to surprise, and disappoint me. Your complaint is basically that you have been offered a service. If you don't like it, don't take it.

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?

Because they are a company incorporated for the purposes of making a profit.

ricky_v

BillJones wrote: »

Adults need to take responsibility for their actions. Being presented with the opportunity to do yourself great harm happens tens of time each day. I genuinely can't see your objection to being offered a loan that you are under no obligation to take.

I never got the phase "irrsponsible lending", it should really be "irresponsible borrowing". It takes two to tango as they say.

Thrugelmir

ricky_v wrote: »

I never got the phase "irrsponsible lending", it should really be "irresponsible borrowing". It takes two to tango as they say.

Buying on credit is a major part of the UK economy now.

Requires a change of culture.

BillJones

ricky_v wrote: »

I never got the phase "irrsponsible lending", it should really be "irresponsible borrowing". It takes two to tango as they say.

I really couldn't agree more. All sorts of companies offer all sorts of products and services all day long, and it is up to each of us to decide whether we ought to take them up or not.

In this case, it doesn't even seem to be an objectionable service, it's a loan offered at a reasonable rate to a person who seems quite likely to be well able to afford to take it in should they so choose.

If the service was cigarettes and booze being offered to children, then it would be a problem, but a well-priced loan to an adult, that really seems fine to me.

ricky_v

BillJones wrote: »

it's a loan offered at a reasonable rate to a person who seems quite likely to be well able to afford to take it in should they so choose.

When I was applying for a mortgage the IFA was asking me how long I want the term to be and what the monthly repayments will be. So he started off at 25, 20, 15 years (the monthly repayments didn't go up much as it was a sub-£30k loan) then went to 10 years which was about 25% of my net take home pay, so quite affordable. Then the 5 year term jumped to 50% of net take home pay.

Being the responsible adult of sound mind I've decided that a 5 year mortgage term was too short as the the monthly repayments would be unaffordable on my salary, so asked for a 10 year term. A couple of days later the IFA rang back and said that the bank doesn't think you can afford the repayments on a 10 year term, so upped the term to 11 years and 1 month, reducing the monthly repayments by the life changing sum of around £10 a month.

Clearly the bank knew more about my day to day finances than me, and decided to nanny me by "saving" me £10 a month, as I cannot decide what is affordable and what isn't. This is the age of "responsible lending", where £10 a month difference on a £28,000 mortgage is clearly the difference between life and death!:rotfl:

Thrugelmir

ricky_v wrote: »

Clearly the bank knew more about my day to day finances than me, and decided to nanny me by "saving" me £10 a month, as I cannot decide what is affordable and what isn't. This is the age of "responsible lending", where £10 a month difference on a £28,000 mortgage is clearly the difference between life and death!:rotfl:

Longer you borrow the money for the more interest the bank earns.


Perhaps there was a minimum monthly repayment level. Some lenders don't touch new mortgages for smallish sums.

quantic

BillJones wrote: »

I do hope that you never find yourself on a railway platform, where a split-second decision can cause issues such as your head coming off...

Adults need to take responsibility for their actions. Being presented with the opportunity to do yourself great harm happens tens of time each day. I genuinely can't see your objection to being offered a loan that you are under no obligation to take.

I understand that there is a tendency towards infantilisation in some sections of society nowadays, with people expecting the government to find them jobs, for example, and pay for their family holidays, but examples such as yours are still able to surprise, and disappoint me. Your complaint is basically that you have been offered a service. If you don't like it, don't take it.

I don't think there is any point in responding to you, as it seems you are being argumentative for the sake of it. But here goes nothing. If you look at payday loans, the attractiveness of this product is mostly the convenience in which you can get them and the speed - it certainly isn't the rates...

Keeping the same trail of thought, all I was trying to convey was that making such a big financial transaction practically trivial could possibly have negative implications for SOME individuals.

I was not moaning for my own "personal risk" as I do not take out loans and have zero debt except my mortgage which is small. I was just trying to suggest that this could perhaps, in some circumstances - create issues.

But if you want to live in blue sky land where these sort of things never happen and we should all be perfect and have no moments of stupid/weakness, power to you.

dealer_wins

d70cw6 wrote: »

where can i get this app from?!

Just spat my coffee all over my keyboard. Quality reply!!!