Lloyds bank lending

takman

saker75 wrote: »

But they already are. The number of defaults and bad debts written off is costed into the interest rates paid by all. Reduce the risk of such non-payment, by being more discerning with lending criteria, would improve the situation for you.

You said that the bank should not give £14k of credit to someone on a £17k salary. So what you are proposing is that banks should only give credit if it is a lot less than what they earn.

My total credit available on credit cards is above my salary already so i would loose out because my credit limits would be reduced.

Also all my credit card debt is at 0% interest and i recently just transferred some debt from a card where the 0% deal was ending to 24 months 0% with a 0% fee.
So my situation cannot improve because i'm borrow the money at 0% interest and earning up to 5% interest on it!

Geoff1963

Banks make their money by : charging more interest to their customers, than they are charged by the institutions which lend to them. That means the risk of having to write off some bad loans ( e.g. when the customer becomes bankrupt ) is offset by what they make on the others. The "best" customers are those who struggle ; because the interest rate can be higher, and they won't pay off their credit cards in full each month.
My "favourite" experience of the term "irresponsible lending" being used by a bank, is when they refused a £4 Unauthorised Borrowing Request ( i.e. a Direct Debit would have exceeded my Overdraft Limit ), then they charged me more than that for refusing to pay the Direct Debit.

MABLE

I think my total debt is about £30k on cards. However all due to stoozing but unfortunately needs to be repaid at end of June.

pmduk

I suspect he's been repaying the minimum payments only which can easily allow the balance owed to increase, whilst giving the impression of an account under control.