Irresponsible lending?

RAS

I once lost a back room job because I didn't have any store cards. "Why?", "Because I took the view that if someone wanted to lend me money, it was because they expected to make a profit." Went down like a lead balloon.

Most creditors offer 0% cards in the expectation that the debtor will be paying full whack at the end of the term and price the discount into the expected rate. Others simply price in the risk, expecting to get enough back from the repayments to cover their costs before things go pear shaped.

ManyWays

steven141 said:

Isn’t it a good thing that they were able to loan you money? Some people with bad credit struggle to get accepted even if they are able to. 

... I wouldn’t complain to them as they were good enough to loan you money.

But all of the people seeking help on this board had lenders that were "good enough to loan them money", that doesnt stop us from advising asking for write offs, pointing out when a debt is statute barred or a creditor may not be able to produce the CCA agreement, or telling people to stop paying so their debts default sooner. We try to get the best for the borrower given their situation, so when lenders may have broken the regulations on affordability checks, that is just another way that can help.  

Rob5342

steven141 said:

Isn’t it a good thing that they were able to loan you money? Some people with bad credit struggle to get accepted even if they are able to.

If they lend to someone with bad credit they can make things worse for them by increasing their commitments and charging them even more interest. They can't be responsible for everything a borrower does but they should be checking that the loan is affordable.