Reckless lending?

~Brock~

quantic wrote: »

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.

For that argument to work you seem to have taken the assumption that Barclays are making offers of £23,600 loans to every customer. That will not be the case. I would suspect that many/most customers are not being offered anything like that figure, if indeed anything.

This is because the bank is able to tailor their offers around how they see a customer's account being handled and how much money goes through it.

You are clearly a low credit risk with little or no existing debt hence their offer is a correspondingly high one.

Just take it as a compliment and move on!

brettcta

i didn't get a loan offer, but they did tell me how much of an overdraft i could have. barclays is the last of my student overdraft to be paid off. i certainly wouldn't have an OD with them after 16th June - the charges are exorbitant

Thrugelmir

quantic wrote: »

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...

Rates are a total red herring. Just like paying £2.50 for a cup of coffee in Costa. The "price" includes a multitude of business overheads, taxation, in respect of Payday lending bad debt and finally an element of profit.