Now Banks Ring Cash-Strapped Home Owners To Warn: Cut Your Spending... Or Risk Losing Your Home

[The Masked Tulip]

Now banks ring cash-strapped home owners to warn: Cut your spending... or risk losing your home

Read more: http://www.dailymail.co.uk/news/article-2031934/Now-banks-ring-cash-strapped-home-owners-warn-Cut-spending--risk-losing-home.html#ixzz1WYLLkYFf

[Goat]

Mortgage and current accounts at the same bank - always a bad idea.

[Fairies Wear Boots]

Ha. That's funny.

They jumped on the ladder, probably lied about how much they earnt too. Thought they'd grab themselves a slice of that HPI pie. Now the banks are ringing them up and telling them they should be eating baked beans on toast.

Maybe Northern Rock should put out pamphlet, 101 things to make with Baked Beans.

[Si1]

Ha. That's funny.

They jumped on the ladder, probably lied about how much they earnt too. Thought they'd grab themselves a slice of that HPI pie. Now the banks are ringing them up and telling them they should be eating baked beans on toast.

Maybe Northern Rock should put out pamphlet, 101 things to make with Baked Beans.

baked beans

and toast

**together**

[moonriver]

Maybe Northern Rock should put out pamphlet, 101 things to make with Baked Beans.

[thecrashingisles]

Now they just need to add a real-time check to card authorisations.

"Sorry sir, your bank has declined the transaction and suggests swapping the mung beans for baked beans."

[ChumpusRex]

What's more surprising is that banks haven't been doing this routinely before.

To me, it would have been simple good business to credit check your borrowers at intervals, and use whatever information you have to hand, to ensure that they are suitable risks. I certainly used to get calls from my bank when I was a student, and finances were a bit thin. "Hello Mr Rex, it's Mr Smith your bank manager here. I see you were overdrawn last week." "Yes. New course books." "And these were obtained from 'The red lion' were they? That's an unusual name for a bookshop. It sounds much more like a pub, doesn't it?"

[SleepyHead]

This jumped out at me. Quarter of a million late on their mortgages! Wow!

And the number of people failing to fully pay their mortgages is almost a quarter of a million.

Overall, the number of home loans which were more than 1.5 per cent in arrears was 243,000 in the second quarter of this year.

Read more: http://www.dailymail.co.uk/news/article-2031934/Now-banks-ring-cash-strapped-home-owners-warn-Cut-spending--risk-losing-home.html#ixzz1WYUon9p7

[billybong]

Now banks ring cash-strapped home owners to warn: Cut your spending... or risk losing your home

Cut your spending! - or you won't be able to afford to bailout the bankers bonuses!

[MrPin]

In an extraordinary admission, the taxpayer-owned banks said that for the first time they were doing secret credit checks to identify high-risk customers.

Pot, Kettle?

Doesn't look like they are very good with money themselves!

[Buccaneer]

Cut your spending! - or you won't be able to afford to bailout the bankers bonuses!

But if the consumer cuts spending then GDP will fall and the government will not meet its deficit reduction targets.

[billybong]

But if the consumer cuts spending then GDP will fall and the government will not meet its deficit reduction targets.

Indeed the bankers and politicians etc have a lot to answer for the mess they've created.

[MongerOfDoom]

In an extraordinary admission, the taxpayer-owned banks said that for the first time they were doing secret credit checks to identify high-risk customers.

WTF???? The only thing I would find extraordinary would be if they didn't.

Whatever next. In an extraordinary admission, the house of commons administrators admitted secretly checking some of the more suspicious expense claims ...

[profitofdoom]

WTF???? The only thing I would find extraordinary would be if they didn't.

Whatever next. In an extraordinary admission, the house of commons administrators admitted secretly checking some of the more suspicious expense claims ...

Not defending the banks but don't people have some kind of responsibility for their own finances? Every day I see people spending money they don't have on things they don't need,Isn't this how we got in this mess in the first place?

[Errol]

Now banks ring cash-strapped home owners to warn: Cut your spending... or risk losing your home

That's a bit rich, isn't it? This from banks who are still insolvent and would collapse in flames if government aid (swaps, liquidity, bailouts) were stopped or reversed.

[Gone baby gone]

Cut your spending! - or you won't be able to afford to bailout the bankers bonuses!

Exactumundo!

Cut your spending says the bank...

"Cut your lending" is what the bank should have done... about 6 years ago and now we are being expected to pay for it.

I'll bet that the majority of people getting these calls are on 100-120% mortgages. Lenders are getting nervous that there is no equity in the property and the value is falling... diddums!

[interestrateripoff]

But if the consumer cuts spending then GDP will fall and the government will not meet its deficit reduction targets.

Nor will the govt, ie the taxpayer be able to underwrite the banker bailout and therefore fund banker bonuses.

[John The Pessimist]

So how do we differentiate between the phone calls from the bank telling us to stop spending, and the phone calls from the bank peddling "financial reviews"? Maybe the banks will save money and use the same call for both.......

Angry voice: Stop spending money you don't have!

Nice voice: Save it with our tracker guaranteed to pay at least 1.8% less than RPI!!!!

[Mrs Bear]

Now banks ring cash-strapped home owners to warn: Cut your spending... or risk losing your home

Read more: http://www.dailymail.co.uk/news/article-2031934/Now-banks-ring-cash-strapped-home-owners-warn-Cut-spending--risk-losing-home.html#ixzz1WYLLkYFf

At the same time I bet those same banks are bombarding them with junk mail urging them to take out loans.

Does anybody not get bombarded with this stuff?

[MrPin]

That's why I'm never worried about the bankers or the politicians getting off Scott free. There is no escape from the consequences of your actions - even personal evasions are only temporary, and when they are uncovered produce greater suffering than if the music had been faced originally.

(Here endeth the lesson. )

Are you a Hindu today?

[Nationalist]

Bring back Debtors' Prison: inmates locked up until they pay what they owe, but allowed out during the day chained to the walls to importune passers-by. The Victorians knew how to deal with debt.

[MrPin]

Bring back Debtors' Prison: inmates locked up until they pay what they owe, but allowed out during the day chained to the walls to importune passers-by. The Victorians knew how to deal with debt.

That only works for poor debtors though! Big debtors know the right people and can hold whole economies to ransom!

[interestrateripoff]

Bring back Debtors' Prison: inmates locked up until they pay what they owe, but allowed out during the day chained to the walls to importune passers-by. The Victorians knew how to deal with debt.

If you lock people up how will they pay back what they owe?

And who pays to lock them up?

[crouch]

But if the consumer cuts spending then GDP will fall and the government will not meet its deficit reduction targets.

Shhh.

[leicestersq]

What did the government expect when it created the moral hazard of letting people keep their homes after they had stopped making mortgage payments? The obvious next stop was always going to be: "Don't worry about your mortgage, no one loses their home any more". The same thing has already happened with water and utility bills.

An old adage for all Labour governments (and Tory it seems): "The road to Hell is paved with good intentions".

Those horrible old Victorians and their ancient predecessors honed their cruel, merciless systems of moral rigour over the millennia with one intention: that they functioned. The human nature they reflect, reflects in turn Nature itself - in some senses implacably cruel, but not to be cheated. Any evasions come back for full payment (with interest) at a later date.

That's why I'm never worried about the bankers or the politicians getting off Scott free. There is no escape from the consequences of your actions - even personal evasions are only temporary, and when they are uncovered produce greater suffering than if the music had been faced originally.

(Here endeth the lesson. )

I am trying to find something to criticise or add to this post, but I cant, other than to echo your sentiment. Bring back moral hazard.

With respect to repossessions, if you dont pay, you should be evicted from your property pronto. It would cause less pain, be far fairer for everyone, if that happened. People wouldnt borrow money that they couldnt repay, banks wouldnt lend it, and the costs associated with eviction when it did happen would be far less. Instead we do the opposite, we listen to bleeding hearts pretending that they have nowhere to go with their children, banks unable to say for politically correct reasons that the customer hasnt repaid, and judges bending over backwards to protect those that have breached their contracts. It is like a collective madness.