Lenders Get Tough

[Guest Charlie The Tramp]

From The News Blog

We want our money thank you

The number of "charging orders" issued in county courts is running at 35,000 a year, three times what it was five years ago, BBC Radio 4's Money Box has learned.

Advisers say the practice is becoming so common that the way loans and credit cards are being marketed should change to include mortgage-style warnings that your home may be at risk if you miss repayments.

When bankruptcies are predicted to reach 60k annually from 2006 plus 35k charging orders that`s 95k people having to seriously cut back with their spending

[Rain'ard]

Hello Charlie I’m still up.

Most advertised loans do have statuary warning in their advertisements in small print of course. So these irresponsible lender don’t seen to want us to be cautious, otherwise it would be large print. It reminds you of a pub land lord selling you drink and throwing you out when you get drunk.

[Buffer Bear]

Oh gosh. This brings back memories of my time in a county court issuing the damn things...............

Edited October 9, 2005 by Buffer Bear

[GCS15]

Regarding "fine print"

I've just had an argument with my old mobile phone provider. I have two contracts that finish in Dec and March respectively. I wanted to pay them out and be done with them. Well I had to pay a penalty for early disconection. I pointed out that I haven't made a call on either contract in over a year as both phones are now deceased and the sim card destroyed as well and as such I couldn't forsee making any calls on those contracts in the future either.

Oh no that would still be breaking the contract. WHAT IS THE DIFFERENCE? I pay the months NOW or in dribs and drabs over the next few months. "NOPE - you're still breaking the contract" - OK then I want my service ceased the second that the contracts are up. "NOPE - you can't do that. You have to ring up a week before the contract ends to tell us that" FFS I"M TELLING YOU NOW!?!

Anyhow I'm rambling. The point is that no-one reads the fine print. I was reading my car insurance fine print and I'm not covered for nuclear war but importantly I am not covered for damage from terrorism.

I don't have home insurance so I am wondering if that is in the fine print for homes?

[Card]

A detail worth noting:-

"Lenders are kind of getting it both ways, they are getting the risk premium off the borrower, but they are getting the security of the charge and that seems unfair."

I think this is incorrect.

The order says that the debt can be recovered from the proceeds of the future house sale. This does not mean that they can force you to sell up as with secured debt does it?

Perspective.