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As Bad Debt Continues To Rock City M P Blames Lenders

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http://www.financeoffshore.com/article_tem...&NewsID=118

2 August 2006

BANKS TO BLAME FOR RISE IN BAD DEBTS – SAYS DR VINCENT CABLE MP

Responding to the announcement that Lloyds TSB has increased provisions to cover bad debts in line with other banks, The UK Liberal Democrat Shadow Chancellor, Vince Cable MP said:
“The irresponsible behaviour on the part of lenders and consumers over the last few years is now starting to show through in the bad debts that banks have to write off.
“Banks must share some of the blame for rising insolvencies and must act more responsibly in the future.
“While some individuals may have acted recklessly, banks are also to blame for increasing credit limits without a customer request and for bombarding individuals with unsolicited mailings.
Personal bankruptcies are rising very rapidly now,
and with interest rates likely to rise in the future and soaring energy bills, households are likely to increasingly feel the pinch.”

Money can be as addictive as any drug and the dealers are ready and able to supply all that the addicts want. It is difficult to see how the Miracle Economy that is based precisely on a borrow and spend culture can survive the winter without a major meltdown and loss of confidence in the banking system. With the BoJ shutting down cheap credit the UK banks may not be able to borrow themselves out of trouble as easily.

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It's a shame Liberal policies are such an abomination, as they do seem to have an occasional MP who actually talks sense.

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It's a shame Liberal policies are such an abomination, as they do seem to have an occasional MP who actually talks sense.

Sadly its not Vince Cable as seen by his past finance related comments and proposed budgets/policies. The real issue with LibDems and their voters is not that they are unelectable but that the MPs and LibDem voters don't realise they are unelectable.

Those nasty banks lending people money at 3-5% - how dare they. These people were better off under loan sharks and grey market financing at 30%+...not.

Against a background where banks were for years told to open up their lending policies to the less well off by MPs and in an era of "affordability" I still see the lions share of the blame on the Borrowers. Anyway the market is solving the problem itself now, albeit slowly by Banks tightening up lending criteria and credit card rules.

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As opposed to the completely sensible Tory and Labour policies?

No, as opposed to the bad Tory and Labour policies. It's a case of 'do you want a kick in the teeth or do you want me to feed your testicles to my dog?'.. both bad, but one less bad than the other.

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Those nasty banks lending people money at 3-5% - how dare they.

Where can I get a loan at 3%? That's a fantastic deal. I'll make money just by putting it in a savings account.

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The perfect tax?

Remove the ability to write off loan losses on personal/residential/BTL lending.

If you can't handle the losses don't make the loan, nealry all of these losses are entirely self-imposed by dropping lending criteria and going for risk.

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The irresponsible behaviour on the part of lenders and consumers over the last few years is now starting to show through in the bad debts that banks have to write off.

Can I just say that it is irresponsible to borrow.

When you borrow you look at the amount and how much it will cost you and if you can afford it.

If you cannot afford it... then turn round and blame the person who lent it to you....

Words alone cannot express

The contempt I hold for those who blame the lenders.

I blame the lenders for lending to the Muppets..

But the Muppets are not allowed that privilege.

They are the problem

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I dont see the need to asign blame here.

So the lender and the lendee are both going to suffer? Charming! Couldnt be happier! Whats the problem?

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Well the government don't show a very good example do they - how big is the national debt?

Why is the government borrowing so much from the BoE?

Watch as your taxes rise to make the ever increasing interest payments, no wonder we need to borrow!

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I dont see the need to asign blame here.

So the lender and the lendee are both going to suffer? Charming! Couldnt be happier! Whats the problem?

Where do you think the banks are going to try and recover some of this bad debt??

Its the people who can manage their money who will lose out in the long run, with lower savings interest rates and banks thinking about reintroducing fees for credit cards are current accounts

http://money.uk.msn.com/Banking/Current%20...cumentid=718964

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Where do you think the banks are going to try and recover some of this bad debt??

Its the people who can manage their money who will lose out in the long run, with lower savings interest rates and banks thinking about reintroducing fees for credit cards are current accounts

http://money.uk.msn.com/Banking/Current%20...cumentid=718964

People who can 'manage their money' currently get subsidised by those who can't. Its their penalty fees and charges that give you free banking at the moment. If you'd insisted that your bank charge you for your credit card (yeah right!) then they wouldn't have needed to be so lax with their lending or harsh with their fees. This is just payback time for you - most of the rest of the world have to pay for banking services...

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The irresponsible behaviour on the part of lenders and consumers over the last few years is now starting to show through in the bad debts that banks have to write off.

Can I just say that it is irresponsible to borrow.

When you borrow you look at the amount and how much it will cost you and if you can afford it.

If you cannot afford it... then turn round and blame the person who lent it to you....

Words alone cannot express

The contempt I hold for those who blame the lenders.

I blame the lenders for lending to the Muppets..

But the Muppets are not allowed that privilege.

They are the problem

I partly agree, certainly if the borrowers knew they could not pay it back. However, the great majority of folks in this country are not too bright compared to many people on this forum.

They are easily manipulated by the spin into thinking this bubble will go on forever & that hard times / unemployment will never happen, so they keep borowing.

Banks have many evil practises that prey on such people. Its like a hall of mirrors.

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I partly agree, certainly if the borrowers knew they could not pay it back. However, the great majority of folks in this country are not too bright compared to many people on this forum.

They are easily manipulated by the spin into thinking this bubble will go on forever & that hard times / unemployment will never happen, so they keep borowing.

Banks have many evil practises that prey on such people. Its like a hall of mirrors.

Valid..

Sometimes.. sometimes the frustration..

"Why hasn't the market crashed?" says the muppet clutching his uber self cert IO mortgage..

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People who can 'manage their money' currently get subsidised by those who can't. Its their penalty fees and charges that give you free banking at the moment. If you'd insisted that your bank charge you for your credit card (yeah right!) then they wouldn't have needed to be so lax with their lending or harsh with their fees. This is just payback time for you - most of the rest of the world have to pay for banking services...

Agreed, its been another tax on the poor in many ways. IMO, Its only usually the poor that struggle with keeping a balance intact, then get murdered for the horrific charges.

Many on regular incomes seem to be very narcissistic and trot out a lot of right wing comments now this corrupt bank charge party looks like it could be over. Its almost like a bribe by the banks to the middle classes to be accessories to shafting the poor.

Perhaps another example of how 'I'm alright Jack' society has become

How is it fair that an unemployed person on £55 a week, should be charged £30-£39 for forgetting or miscalculating their balance by £1 when the cost to the bank is £1? If you get charged nearly 25% of your weekly income (£12), your not going to do it again by choice are you.

Even the £12 fee is over 1000% profit. Its still too high IMO and it should be £5.

Edited by Saving For a Space Ship

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BANKS TO BLAME FOR RISE IN BAD DEBTS – SAYS DR VINCENT CABLE MP

the blame lies squarley at the shoulders of new labour for agreeing to the tory deregulation of btl in 1997.

it made them look good. for a while.

oh no. time for the tories to pop in with a 'economic rebuild' angle.....

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TIGHTER bank lending...

would bring lower House prices, and a weaker economy,

AND a HUGE jump in bad loans at banks, as a knock-on effect of lower property prices

"You reap what you sow"

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  • 301 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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