Zzzzzzzzzzzzzzzzzzzzzzzzzz Posted December 12, 2008 Share Posted December 12, 2008 Just had a letter offering me unsecured £18,000 - yet they donot know my income. Completely mad - UK's lowest unsecured loan rate apparently. So Brown is getting his way! Madness! Quote Link to comment Share on other sites More sharing options...
chichi Posted December 12, 2008 Share Posted December 12, 2008 Insane. And just think how fair they'll be being to you when credit card companies put everyone's rates up to compensate for not being able to charge muppets more. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted December 12, 2008 Share Posted December 12, 2008 Do you own your home? They probably fancy it. Quote Link to comment Share on other sites More sharing options...
Guest DissipatedYouthIsValuable Posted December 12, 2008 Share Posted December 12, 2008 Just had a letter offering me unsecured £18,000 - yet they donot know my income. Completely mad - UK's lowest unsecured loan rate apparently. So Brown is getting his way! Madness! They're probably only sending out applications to those they know won't use them. "Sorry Gordon, we've tried to lend money, but no-one wants it." Quote Link to comment Share on other sites More sharing options...
darwin Posted December 12, 2008 Share Posted December 12, 2008 Just had a letter offering me unsecured £18,000 - yet they donot know my income. Completely mad - UK's lowest unsecured loan rate apparently. So Brown is getting his way! Madness! They're always trying to offer me money too. Don't know why. These banks must like the pain or something. Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted December 12, 2008 Share Posted December 12, 2008 what was the rate gruffy? We were offered a car loan when we were looking to buy a car at 11.9%. We could have borrowed at around 6% 18 months ago I reckon. Quote Link to comment Share on other sites More sharing options...
Blue Peter Posted December 12, 2008 Share Posted December 12, 2008 They're probably only sending out applications to those they know won't use them. Perhaps they've bought the HPC user list? Peter. Quote Link to comment Share on other sites More sharing options...
Jason Posted December 12, 2008 Share Posted December 12, 2008 Perhaps they've bought the HPC user list?Peter. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted December 12, 2008 Share Posted December 12, 2008 heh, i get a £14k loan offer from lloyds every fortnight for the past three years. Same letter, same amount. I really wonder when theyre going to give up. Quote Link to comment Share on other sites More sharing options...
BrickandMortar Posted December 12, 2008 Share Posted December 12, 2008 It is common practice from banking organizations to send out random letters with an "approved" loan written on it, or "approved" credit card etc.... I get this crap all the time and just shred it. In fact nothing is approved [yet], applicants still need to apply as normal with their financial details. It is the same type of marketing ploy book/cd companies use claiming "you have won a prize" bullsh1t. Quote Link to comment Share on other sites More sharing options...
TTID Posted December 12, 2008 Share Posted December 12, 2008 Just had a letter offering me unsecured £18,000 - yet they donot know my income. Completely mad - UK's lowest unsecured loan rate apparently. So Brown is getting his way! Madness! Yeah. If it's secured, they repossess what it's secured against when you default. If it's not secured, big Gary comes round and cuts out your liver. It's all about how deep they want to insert the catheter. Quote Link to comment Share on other sites More sharing options...
guitarman001 Posted December 12, 2008 Share Posted December 12, 2008 When I log onto my Lloyds TSB internet banking, they keep offering me these new accounts which I'd have the privilege of paying £400+ a year for... Quote Link to comment Share on other sites More sharing options...
howlowcanyougo2008 Posted December 12, 2008 Share Posted December 12, 2008 I have noticed the last month that these letters have increased massively. There was nothing for a few months which was expected but the last month they have increased to a level higher than they came pre-crunch. Maybe things are happening with Browns plans :angry: Quote Link to comment Share on other sites More sharing options...
chichi Posted December 12, 2008 Share Posted December 12, 2008 When I log onto my Lloyds TSB internet banking, they keep offering me these new accounts which I'd have the privilege of paying £400+ a year for... You should get in touch and tell them to stop. They do if you ask them not to send you any marketing rubbish Quote Link to comment Share on other sites More sharing options...
RufflesTheGuineaPig Posted December 12, 2008 Share Posted December 12, 2008 Yeah. If it's secured, they repossess what it's secured against when you default. If it's not secured, big Gary comes round and cuts out your liver. Following law changes that took effect in April 2006, all loans and debts are effectively secured, as the rule change made it easy-peasy for them to put a charge against your house and even force a sale. Instead of a lengthy court process, they just print out a spreadsheet with names, addresses and amounts on it, fill in a cover sheet, and have it stamped by the clerk of the court. Tada, a charge against your house. Then if you fail to pay, a short, uncomplicated, one-sided court session later (5 minutes with the judge) and they can force the sale. horror stories about this are only just starting to come out. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted December 12, 2008 Share Posted December 12, 2008 Just had a letter offering me unsecured £18,000 - yet they donot know my income. Completely mad - UK's lowest unsecured loan rate apparently. So Brown is getting his way! Madness! Hey, why does noone want to lend me money unless I ask for it? Could it be 'cos I can't be arsed to open my junkmail? Quote Link to comment Share on other sites More sharing options...
psj Posted December 12, 2008 Share Posted December 12, 2008 I have an existing loan with Lloyds, and for the last six months in a row, I've had the offer to "top it up" to £10k, paying my existing installments. The interesting thing is that the APR was normally floating around 13% earlier in the year, went down to 9.6% last month, but has now shot up to 14.6% this month! Quote Link to comment Share on other sites More sharing options...
Soul Reaver Posted December 12, 2008 Share Posted December 12, 2008 It is common practice from banking organizations to send out random letters with an "approved" loan written on it, or "approved" credit card etc....I get this crap all the time and just shred it. In fact nothing is approved [yet], applicants still need to apply as normal with their financial details. It is the same type of marketing ploy book/cd companies use claiming "you have won a prize" bullsh1t. That's not quite true. My company Barlcay cards were pre-approved and all I had to do was sign to recieve them! Quote Link to comment Share on other sites More sharing options...
athom Posted December 12, 2008 Share Posted December 12, 2008 Following law changes that took effect in April 2006, all loans and debts are effectively secured, as the rule change made it easy-peasy for them to put a charge against your house and even force a sale. Instead of a lengthy court process, they just print out a spreadsheet with names, addresses and amounts on it, fill in a cover sheet, and have it stamped by the clerk of the court. Tada, a charge against your house.Then if you fail to pay, a short, uncomplicated, one-sided court session later (5 minutes with the judge) and they can force the sale. horror stories about this are only just starting to come out. Yep, same government who gave us this, later gives us the home owners saved from repos headlines. If the mortgage arrears doesn't get them the plastic companies will.... especially those who try to keep their mortgage payments up by using their plastic Quote Link to comment Share on other sites More sharing options...
swissy_fit Posted December 12, 2008 Share Posted December 12, 2008 Just had a letter offering me unsecured £18,000 - yet they donot know my income. Completely mad - UK's lowest unsecured loan rate apparently. So Brown is getting his way! Madness! If you get enough of these offers you can do a "Horus". You might want to give the Thai boys a miss though..... Quote Link to comment Share on other sites More sharing options...
abharrisson Posted December 12, 2008 Share Posted December 12, 2008 Just had a letter offering me unsecured £18,000 - yet they donot know my income. Completely mad - UK's lowest unsecured loan rate apparently. So Brown is getting his way! Madness! Heres how it works "broadly"... they send out loads of mailers to people.. their premise is that perhaps only 1% of people or less will take up the offer... they still make a proft. With their own customers they have an internal credit score based on account performance... so they see what situation you are in before offering For non-lloyds customers they buy in lists then run non-tracable credit checks and profiling to whittle that down to an acceptable list. For everyone when you get back to them they do have the right to seek further details and vary the offer Unsecured lending is not really unsecured as they can go for a charging order... equally they get lower risk because they are spreading every £100,000 over a number of people not just one... and they will also have done quite a bit of risk profiling on the initial list Finally they are charging something like 10% vs cost of funds of about 3.5%... plus they get any set up fees up front, plus they will sell payment protection insurance to about 25% of cases plus they will then cross sell other products like current accounts, car insurance, home insurance etc etc to a further 5% of the book..... in other words its really a very profitable area for them even in these turbulent times. Its a myth that banks don't have the money to lend, where theres a percieved profit to be had they will lend as much as possible... problem for the Govt being that theres no profit or little anyway to be had in mortgages. Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted December 12, 2008 Share Posted December 12, 2008 Its a myth that banks don't have the money to lend, where theres a percieved profit to be had they will lend as much as possible... problem for the Govt being that theres no profit or little anyway to be had in mortgages. And there's the rub for Broon. Borrow at 2% off savers and lend at 3.5% secured against a reducing value, or lend at 12% and still be able to secure against the home some time down the line. No brainer really, even after Broon tries another pumping exercise as just announced. Quote Link to comment Share on other sites More sharing options...
Miserable Barsteward Posted December 12, 2008 Share Posted December 12, 2008 heh, i get a £14k loan offer from lloyds every fortnight for the past three years. Same letter, same amount. I really wonder when theyre going to give up. Why don't you take 'em up on it just for a laugh.....the maximum amount...then wait until the last day of the cooling off period and tell 'em you've changed your mind Quote Link to comment Share on other sites More sharing options...
delboypass Posted December 12, 2008 Share Posted December 12, 2008 Llyods offered me a private client banking manager the other day and now they chasing me Duck and cover...sweep and clear... Quote Link to comment Share on other sites More sharing options...
MongerOfDoom Posted December 12, 2008 Share Posted December 12, 2008 And there's the rub for Broon.Borrow at 2% off savers and lend at 3.5% secured against a reducing value, or lend at 12% and still be able to secure against the home some time down the line. That is not quite the same as getting the money back. It assumes the borrower would have some equity left after existing secured debts are repaid following a distressed sale. Perhaps the banks will bring back lots of 0% offers. It is better to lend at 0% to people who will repay the capital than at 20% to near-bankrupts who will not. Neither makes commercial sense, but then they are apparently not allowed to apply that any more now that the taxpayer owns them .... Quote Link to comment Share on other sites More sharing options...
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