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Panorama BBC1 Sunday 22:15

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BBC - The money trap

Watch Panorama on Sunday 2 July 2006 on BBC One and live on this site or on demand to hear an insider break the banking industry's code of silence.

She says that high street bank lending practices put profits before customers at every given opportunity in order to push borrowing

Wendy Cullen's husband Richard was also a customer of the RBS. He took his own life in January 2005. He was a car mechanic earning around £15, 000 a year and in the last six years of his life he secretly amassed £135, 000 on 22 credit cards.

Several lenders had issued more then one card to Richard Cullen.

The Royal Bank of Scotland Group had lent him more than £35, 000 and issued him with four cards under different brand names.

Banks in trouble

The consequences of Britain's borrowing crisis are so serious that they are now hitting the banks themselves. They are facing a mountain of bad personal debt.

Four of the high street banks, including Lloyds TSB and RBS, have launched a new initiative to identify customers in trouble.

They will now share information on clients' incomes as well as their credit histories to inform their lending decisions.

But the whistleblower is unconvinced: "It is certainly a step in the right direction, but I do remain very sceptical.

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This is the one that was on at 9:55am about 4 weeks ago!!!!

Maybe, they have just had the guts to show it at a decent time!!!

TB

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This is the one that was on at 9:55am about 4 weeks ago!!!!

Maybe, they have just had the guts to show it at a decent time!!!

TB

Yeah, I saw it. There was a whole week of the shows, from pusing credit to pushing insurance, and ended up with gambling.

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http://www.bbc.co.uk/cgi-perl/whatson/prog...5_4223_26418_45

How the Banks Lure You Into Debt
A senior banking executive reveals how high street banks deliberately target their customers and push borrowing. The whistleblower tells how the industry is driven by aggressive targets, uses hard-sell tactics and sophisticated marketing techniques, and profits from customers in financial difficulty.
The programme also highlights one of an alarming number of people who have killed themselves when their debt spirals out of control.

:o

BUMP

Edited by Realistbear

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Guest grumpy-old-man

http://www.bbc.co.uk/cgi-perl/whatson/prog...5_4223_26418_45

How the Banks Lure You Into Debt
A senior banking executive reveals how high street banks deliberately target their customers and push borrowing. The whistleblower tells how the industry is driven by aggressive targets, uses hard-sell tactics and sophisticated marketing techniques, and profits from customers in financial difficulty.
The programme also highlights one of an alarming number of people who have killed themselves when their debt spirals out of control.

:o

BUMP

is this a repeat ? if so we watched it a few weeks ago & it was very good. If it was the same prog it was a high ranking women who blew the whistle.

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is this a repeat ? if so we watched it a few weeks ago & it was very good. If it was the same prog it was a high ranking women who blew the whistle.

I think it is a repeat. Dimbleby's way of annoying Gordon maybe?

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Guest grumpy-old-man

is this a repeat ? if so we watched it a few weeks ago & it was very good. If it was the same prog it was a high ranking women who blew the whistle.

I think the prog times say it all, I think we watched it on a Monday morning at 9:30 & tonight, Sunday at 10:15. It should be called "The Minority Report" ;)

definetly worth watching.

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Guest grumpy-old-man

Hmmm, not the usual, "It wasn't my fault I took on too much debt" rubbish is it?

well, yeah, it is a bit, but just watch it anyway then you can shout at the tv, tell them how stupid they are for buying loads of new stuff, whilst earning a pitance & generally annoy the wife as well. ;):P

it does highlight the devious side of the banking elite though, the old vision of a well respected man, highly thought of in his local community goes right out of the window....escpecially on the back of the bank manager who just got 10 years :o

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well, yeah, it is a bit, but just watch it anyway then you can shout at the tv, tell them how stupid they are for buying loads of new stuff, whilst earning a pitance & generally annoy the wife as well. ;):P

it does highlight the devious side of the banking elite though, the old vision of a well respected man, highly thought of in his local community goes right out of the window....escpecially on the back of the bank manager who just got 10 years :o

:)

Yep, you know the score, I'll warm up the shouting voice.

:lol:

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Guest mattsta1964

http://www.bbc.co.uk/cgi-perl/whatson/prog...5_4223_26418_45

How the Banks Lure You Into Debt
A senior banking executive reveals how high street banks deliberately target their customers and push borrowing. The whistleblower tells how the industry is driven by aggressive targets, uses hard-sell tactics and sophisticated marketing techniques, and profits from customers in financial difficulty.
The programme also highlights one of an alarming number of people who have killed themselves when their debt spirals out of control.

:o

BUMP

I will watch with interest but I suspect it wont be very enlightening. I cite Question Time as a example of how the real, serious issues in the country aren't being dealt with seriously. Dimbleby is too busy cosying up to his pal Prince Charles to give a flying f**k about real people in this country, just like all the other museli chewing, champagne socialists in the BBC.

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Hmmm, not the usual, "It wasn't my fault I took on too much debt" rubbish is it?

It's the fault of the banks, of course, "luring" us into debt.

Pretty much the same way that a pub lures people into drunkenness I suppose.

The business of a bank is to lend money. It's a pretty grim way of making a living but there you go. It's not illegal.

Every other day I get junk mail offering me credit cards, loans and other financial services. They go straight in the bin.

There should definitely be guidelines on marketing loans to people already in debt, though managing this would be difficult.

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Dimbleby is too busy cosying up to his pal Prince Charles to give a flying f**k about real people in this country, just like all the other museli chewing, champagne socialists in the BBC.

Hang on Mattsta.

Your ant-BBC tirade will have made you feel a little better but it's the same BBC who are making documentaries like this and showing them in their flagship Panorama slot. I suspect many people on here will be fans of Rupert Murdoch, yet Sky TV would never waste money on criticising the companies that advertise with them.

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The debt mongers cannot stop what they do as their livlihoods depend upon it. Many banking jobs are now commission/performance based and the bar has to be constantly lowered in order to keep feeding the machine. This is why Nationwide, Leeds etc. are now loaning to the "credit impaired" because the rest are already up to their eyes in it.

This is one of the factors that have made it "different this time." During the Great Crash (1989-96) there was a semblance of restraint that remained with reasonable lending standards and far more oversight by "head office." I bought a house in '91 (100k less than it was in 1986) and remember having to show proof of income, LTV considerations, full survey etc.

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I can't believe what I am hearing.

Quote: I felt special because these companies where paying an interest in me.

I ended paying £600 per month on credit cards minimum payments.

Then one day I realised that I had possibly put my house at risk.

No shit Sherlock.

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I'm seeing this programme for the first time, and whilst there is nothing really new in it, I'm still shocked - not so much at the bank's tactics, but at the "victims'" stupidity. A guy earning 26,000 a year having racked up 120,000 in debt. But of course, it's all the bank's fault.

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The blame hits both ways.

The customers are naive, but then how are they supposed to have gained financial acumen?

The banks promote themselves as being financial experts. There to look after our financial needs.

The Jenkins husband was under the impression that his bank was there to help him with a financial review.

Banks used to act with some propriety. It seems that has all gone. But where can Joe Public go, if their bank is not to be trusted to give them sound advice and lend responsibly?

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But where can Joe Public go, if their bank is not to be trusted to give them sound advice and lend responsibly?

Basic maths?

Is it really too much to expect people to calculate their own earnings and outgoings?

Clearly it is.

The program seemed to have a very low opinion of its viewers. They kept banging on about the same things: "Aggressive sales targets... etc", as if we hadn't understood even before the prog started.

When they used the same footage as the opening scenes from "the Apprentice" I almost got the impression that they were alluding to Syed sales tactics: "Trust me, in 3 years you can sell this loan back to us at a profit." :P

Edited by Sledgehead

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Guest muttley

The banks promote themselves as being financial experts. There to look after our financial needs.

Car salesmen promote themselves as being experts on cars, but you wouldn't go to one and ask him "What's the most expensive car that I can have?"

You're right, though. People do have that perception.

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I dunno about other people and their upbringing, but I was taught at a VERY EARLY AGE.... there is no such thing as a free meal!

I do agree with the Jenkins guy that when you got a PLAATINUM card years ago, it was a symbol of good credit and stature. Nowadays, every TOM, DICK and HARRY can get one. The problem arises when these people forget that you actually pay it all back with LOTS of interest. I used to believe that consolidating a loan was a clever thing to do but now, in hindsight, its the worst thing you can do. Yes you can make your payments more managemable but its going to cost you more.

My advice to anyone is IF you get debts that are caused by overspending then the only way out if it is to STOP spending! All your money should then go into clearing the debts.

TB

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The ease of getting money and the stupidity of people are the essential ingredients for a crash.

I loved the program from an economics point of view because it revealed how a crash is guaranteed.

"Sheeple" + commission hungry bankers = grief!

Not long now. :)

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