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Bruce Banner

More help for the irresponsible

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17 minutes ago, winkie said:

Banks should be more responsible and see that unauthorised overdrafts can't happen......😉

Unthinkable, I know, but perhaps bankers should only be allowed to lend out what they take in from depositors ...... would that make them a bit more responsible?

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2 minutes ago, cnick said:

Unthinkable, I know, but perhaps bankers should only be allowed to lend out what they take in from depositors ...... would that make them a bit more responsible?

That can never happen......most money is tied up in assets outside a bank deposit account.....a banks asset is its debt....profits are interest and fees, those with the least pay the most, some people are not responsible enough or wealthy enough to borrow money......even debt that is never repaid makes money.😉

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And yet someone could have been daft enough to borrow £200,000 in 2006 to buy an ex crack den on crappy wages to then see an inevitable financial crisis to then have the banking system say to those idiots "right you had this coming" I am reducing your mortgage rate from 7% to near zero

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Why don't they simply not allow the overdraft? with IT now it should be possible to know if someone has a positive balance or not before processing a payment.

 

(In my opinion now they can't make money off in arranged overdrafts they will find ways not to give them)

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26 minutes ago, reddog said:

Why don't they simply not allow the overdraft? with IT now it should be possible to know if someone has a positive balance or not before processing a payment.

 

(In my opinion now they can't make money off in arranged overdrafts they will find ways not to give them)

It is possible and they know it is possible ..... they chose not to  ... for some reason.

Time to wheel this one out again .... for the few (many?) who think banks can only lend money they have borrowed from people....the banks really are 'the magic money tree' that have grossly distorted house values ..... to keep the banks solvent.

 

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1 hour ago, reddog said:

Why don't they simply not allow the overdraft? with IT now it should be possible to know if someone has a positive balance or not before processing a payment.

 

(In my opinion now they can't make money off in arranged overdrafts they will find ways not to give them)

Or introduce bank charges for the responsible, which is what I expect will happen.

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6 minutes ago, Bruce Banner said:

Or introduce bank charges for the responsible, which is what I expect will happen.

Precisely. Everyone will be forced to the lowest common denominator.

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Quote

She said the extra charges meant she was worrying about other costs including buying school shoes for her son and paying a plumber's bill.

"It meant no family holidays, and no Christmas presents exchanged with my husband. It is mentally and emotionally difficult. You just feel that you are treading water the whole time."

Barclays has always said there are options for account holders in such a situation, but Mrs Toth said the bank's offer to switch the overdraft into a loan did not suit their financial plight.

https://www.bbc.co.uk/news/business-46590724

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"Mrs Toth, who is married and in her 40s, said she had used her arranged overdraft as it was intended - to cover an unexpected cost which, in her case, was flights to the US for a funeral."

 

that's just a debt junkie keeping up appearances. The piece also alludes to her being a homeowner (plumbers bills).

entitlement entitlement entitlement

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3 minutes ago, Si1 said:

Here she is on LinkedIn I believe - looks the same but do correct me if wrong - she writes medieval recipe books....

Then she should know on how to live off tuppence, some mud, and a mouldy turnip.

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i would not even buy a house if i did not have at least 2 full years of living costs put away should there be no income. 

£300 for emergency flights if you don`t have that spare i would give up. 

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taking a step back, this is just the broader financial sector and market effecting real terms interest rate rises affecting everyone even if the BoE is resisting.

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2 hours ago, Bruce Banner said:

Or introduce bank charges for the responsible, which is what I expect will happen.

Exactly right...in most of the world you need to pay for the banking services that we all take for granted as free in the UK.  The way this is going I expect more charges for services used by those in the black with a responsible approach and record.

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13 minutes ago, Wayward said:

Exactly right...in most of the world you need to pay for the banking services that we all take for granted as free in the UK.  The way this is going I expect more charges for services used by those in the black with a responsible approach and record.

....years ago it was free if held a certain amount in a current account earning zero interest.....savers already pay for their banking costs less than 0% to 1% credit interest paid is paying, every time use a debit or credit card are paying.....thankfully there are choices, not like the trains or water. ;)

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2 hours ago, Bruce Banner said:

Or introduce bank charges for the responsible, which is what I expect will happen.

Won't work. We could just empty our accounts and keep cash at home.

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32 minutes ago, Wayward said:

Exactly right...in most of the world you need to pay for the banking services that we all take for granted as free in the UK.  

We already give the bank the use of our money. That is the deal. They get the deposits, we get the service. If they are going to charge as well why bother? Just keep the cash outside the system.

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7 minutes ago, Errol said:

Won't work. We could just empty our accounts and keep cash at home.

Now, yes, in ten years time, I wonder. 

Even today, keeping a few hundred thousand at home, let alone a few million might raise accusations of money laundering. Bank accounts are as much for traceability as anything else.

Edited by Bruce Banner

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9 minutes ago, Errol said:

We already give the bank the use of our money. That is the deal. They get the deposits, we get the service. If they are going to charge as well why bother? Just keep the cash outside the system.

One of the reasons why there are powerful vested interests to do away with cash altogether....who will that benefit?;)

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1 hour ago, Errol said:

We already give the bank the use of our money. That is the deal. They get the deposits, we get the service. If they are going to charge as well why bother? Just keep the cash outside the system.

They'll just get rid of denominations of cash above £10, make it worthwhile paying someone to store it for you instead.

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56 minutes ago, Si1 said:

They'll just get rid of denominations of cash above £10, make it worthwhile paying someone to store it for you instead.

You could just dig a big hole under your house and fill it with hundreds of thousands of pounds coins.

Edited by Errol

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  • 293 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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