Nice People 13: Nice Save

Generali

CKhalvashi wrote: »

Although who will be to blame here?

Banks are acting on client instructions, and clients are guaranteed to this by legislation, so surely it's either the client or (unfortunately) the government that are going to have to pay this if there is.

Yup and banks will be unlikely to be promoting this as they get to charges management fees on your pension plan. If you cash it in they get nada.

I guess the only exception would be if you're behind on the mortgage/credit card. They may push you to access your pension to get back into a decent position. That might lead to an awkward conversation if you have one of those mortgages where you are using your pension as a repayment vehicle.

Actually I just thought of that. People that are using the pension as a repayment vehicle on their mortgage can presumably now be forced to use the entire pension to pay off the mortgage if there's a shortfall.

Hmmm. Closet bank bailout?

Nikkster

Closet bank bailout and/ or economic stimulus when there is a sudden surge in purchases of Lambourghinis/ cruises/ motorhomes etc.

michaels

Generali wrote: »

Yup and banks will be unlikely to be promoting this as they get to charges management fees on your pension plan. If you cash it in they get nada.

I guess the only exception would be if you're behind on the mortgage/credit card. They may push you to access your pension to get back into a decent position. That might lead to an awkward conversation if you have one of those mortgages where you are using your pension as a repayment vehicle.

Actually I just thought of that. People that are using the pension as a repayment vehicle on their mortgage can presumably now be forced to use the entire pension to pay off the mortgage if there's a shortfall.

Hmmm. Closet bank bailout?

It would be a very brave banker who insisted on that if it wasn't in the customer's best long term financial interest. Nowadays it is not just a matter of putting all the facts on the table and letting the customer decide; nowadays if the customer changes their mind with hindsight it is the banks fault and they will be expected to pay compensation.

Generali

michaels wrote: »

It would be a very brave banker who insisted on that if it wasn't in the customer's best long term financial interest. Nowadays it is not just a matter of putting all the facts on the table and letting the customer decide; nowadays if the customer changes their mind with hindsight it is the banks fault and they will be expected to pay compensation.

The client has already promised to use the pension to pay off the mortgage. If the mortgage was misold then the client has a claim against the bank. A bank holding a client to their promises seems pretty reasonable to me although admittedly reasonableness tests only seem to apply to banks rather than their customers.

If banks lying about funding rates that they don't use is a fraud, surely lying about your income and having a vehicle in place to repay a mortgage is also fraud...?

CKhalvashi

Generali wrote: »

If banks lying about funding rates that they don't use is a fraud, surely lying about your income and having a vehicle in place to repay a mortgage is also fraud...?

But the DM and their readers like a story about a poor pensioner that is being turfed out of their home by a bank.

Despite the fact IME the same poor pensioner lied to the bank about whatever repayment plan was in place or will have wasted their pension pot etc.

I understand some people are bad with money (I know I am for a start, just earn enough not to have to worry too much), but surely making sure that you have a roof over your head long-term should be a priority for everyone.

vivatifosi

Re pensions... I think shady IFAs are the issue rather than banks, who have been burned too many times. I could be proved wrong though.

I have a meeting later this month with my fund's advisors. I am expecting to spend a lot of time on this issue, as well as a bit of time on pension fraud, which has also increased.

CKhalvashi

OH has just gone in the boot of her car to find a rabbit hutch, 3 bags of straw and some sawdust

In other news, spending most of today for mother, plus sorting another few bits from the house. She's officially got a moving date now. Wondering whether to get DDs up to take with me or not, as it's either that or into work with OH.

What are the NP doing this weekend?

vivatifosi

I am hoping to go to Brighton for the day at some point, Thameslink permitting.

vivatifosi

CK, do you have a favourite song yet for Eurovision? I haven't heard many of this year's entrants as yet.

CKhalvashi

vivatifosi wrote: »

CK, do you have a favourite song yet for Eurovision? I haven't heard many of this year's entrants as yet.

Possibly biased, but Georgia. I know Nina from somewhere else, so that probably has something to do with it

Macedonian video is really simple yet genius. He won X-Factor last year and has amazing voice.

Really like Russia, but I don't know how well it's going to go down.

Maraaya's voice is lovely, and she is also the coach from Ula Lozar last year at Junior.

They're my top 4, but as I hear everything in next days, it will probably change.