'unsecured' credit is not really unsecured

[mark vincent]

Warning for people with credit cards or other 'unsecured' loans.

Banks and credit card providers are getting more aggressive with people who default on their loans, they can force a charge on a debtors property and in some cases make the debtor sell his property to pay their debts,

Almost ,100,000 people had charges secured on their property last year, so how can lenders market their products as unsecured and then convert them to secured,

 

[Trazor]

You expect banks to treat you fairly, where have you been all of your life?

 

[electronicsuk]

As much distain as I have for the banks, can you blame them? If someone takes out a loan that they cannot pay back, and the bank are unable to reclaim any money from the debtor, then it falls to all the banks other customers to pay it back on behalf of someone who probably shouldn't have borrowed in the first place.

 

[big-all]

As much distain as I have for the banks, can you blame them? If someone takes out a loan that they cannot pay back, and the bank are unable to reclaim any money from the debtor, then it falls to all the banks other customers to pay it back on behalf of someone who probably shouldn't have borrowed in the first place.

completly unfair practice
they charge a much higher price for the privelige this is factor in to the price they charge as there will be defaulters

the banks choose to take the risk for the greater reward why should they then be able to change the rules

its like us taking out a product from the bank based on the stock market and because it performs poorly takeing out a charge against the bank

it should be outlawed as unfair practice

 

[mark vincent]

As much distain as I have for the banks, can you blame them? If someone takes out a loan that they cannot pay back, and the bank are unable to reclaim any money from the debtor, then it falls to all the banks other customers to pay it back on behalf of someone who probably shouldn't have borrowed in the first place.

Thats not the point is it, if a bank offers you a loan and you accept their offer of credit on the basis that your home will not be at risk, it then turns out that in the event of default they can and will take your property, then the banks are guilty of misselling their product just like they did with endowments and ppi.

I had a couple of credit cards which i have now cancelled, if i had known at the time when i took them out that my property could be at risk i would never have signed on the dotted line.When i asked the bloke who selling me the credit agreement why the interest rates on credit cards were so high he said it was because the loan was 'unsecured' it had to be reflected in the interest rates charged.

 

[woody2]

Warning for people with credit cards or other 'unsecured' loans.

Banks and credit card providers are getting more aggressive with people who default on their loans, they can force a charge on a debtors property and in some cases make the debtor sell his property to pay their debts,

Almost ,100,000 people had charges secured on their property last year, so how can lenders market their products as unsecured and then convert them to secured,

they have to go to court first so cant force anything and they cannot sell your property but when you come to sell will recover the debt

just pay £1 a month and they wont even get a CCJ

 

[olly_k]

This is a good thing IMO. Too many think it ok to walk away from debts they have built up no one twisted their arms. Normally because they live beyond their means and have a keep up with the jones' attitude.

Some of the crap on MSE.com unbelievable people asking how to 'get off' debts and when you see what they are spending i.e. full sky package, 2 essential cars various pets etc etc...

These scroats should try living on the bread line like I have for a long while without their shiny plasmas and annual holidays abroad

Same with bank charges anyone who is claiming thousands is only doing so because they didn't care about going o/d when times were good I bet very few individuals spiraled into debt because they really couldn't afford to put food on the table...

About time people learnt the value of money IMO.

 

[olly_k]

if i had known at the time when i took them out that my property could be at risk i would never have signed on the dotted line.

Which implies you knew you could effectively walk off with stuff you didn't own. That says a lot about you!

 

[kevindgas]

These scroats should try living on the bread line like I have for a long while without their shiny plasmas and annual holidays abroad

and thats why you don't have the same things, because you don't play the system!

these people make their miserable lives more enjoyable by having luxuries they can't afford.

sad but true!!

 

[chainsaw_masochist]

they have to go to court first so cant force anything and they cannot sell your property but when you come to sell will recover the debt

What most likely will happen is the bank will sell the debt on, often for as little as 20% of the sum outstanding. The purchasing company then becomes the creditor and will through the courts serve a charging order against the property. This too will be subject to interest charges over time. There is no way that this can be avoided.

just pay £1 a month and they wont even get a CCJ

If you own a property there is no way that this would be the case.

 

[big-all]

if the bank want to claim back on non payers they should refund all the extra fees and convert all loans to secured refunding the billions off extra proffit they take
eeehhh dont think they want to do that so we should let them have it both ways then
increased profits and reduced risks well thats fair then!!!

 

[libby lou lou]

you don't play the system!

And i have an half decent life, as i play every system i can, plasma's all over the house, don't really watch tv,don't fly, but, you must learn to screw the system,

maybe your local mp could help

 

[mark vincent]

implies you knew you could effectively walk off with stuff you didn't own. That says a lot about you!

It isn't about walking off with something i don't own, it is about risk, if i wanted a secured loan i would ask for one, i took out a credit card and i was prepared to pay a higher rate of interest because i didn't want to risk my property.

If a lender says to you we will loan you money but it will cost you more in interest because we are not asking you for security, then when you get into diffs, the same lender says we want your property as security to make sure we get our money back, do think that is fair then?

 

[mark vincent]

Contrary to what some people think, when a lender gets a charge on your property for CC debts they can in certain circumstances go to court to force you to sell.

 

[mark vincent]

Which implies you knew you could effectively walk off with stuff you didn't own. That says a lot about you!

I think your post says more about you than it says about me, you seem to think it is ok to promise one thing to get some ones business and then when some thing goes wrong it is ok to change the the terms of the original agreement.

If a lender agrees to lend money without asking for security at the time in order to make more profit by charging higher interest then it is their problem if they can't get their money back.