Friday, Oct 13, 2006

Banks Count the Cost of Consumer Debt

Financial Times: Banks upset by reluctance to rein in insolvency deals

Banks were dealt a blow on Thursday night when Jim Fitzpatrick, trade minister, signalled the governments reluctance to impose
tighter regulation on companies that offer insolvency agreements to help consumers offload their debts.

The biggest banks have been concerned about the rise in individual voluntary arrangements, which jumped from 5,000 in 2002 to an estimated 40,000 this year.
Reported By Jane Croft, Retail Banking Correspondent, Financial Times
Published: October 12 2006 22:30

Posted by hyrax @ 01:37 AM (526 views)
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1. Distant_daz said...

Maybe the banks should try some responcible lending practice instead?

Friday, October 13, 2006 01:17PM Report Comment

2. the bald man said...

Who has any sympathy for banks. They push out credit to people who can not afford to repay and then complain when these people that advice. Why are house prices so high? Irresponsible lending against illusory values. Do not then complain about people not repaying!

Friday, October 13, 2006 03:38PM Report Comment

3. Surfgatinho said...

I think there is a saying about sowing and reaping that fits this one quite well!

Friday, October 13, 2006 05:33PM Report Comment

4. Retiredbanker said...

bald man-

You do have a point.

A return of some rigour to lending criteria would not be amiss.

Friday, October 13, 2006 05:44PM Report Comment

5. Guest said...

Quite a satisfying read. What goes around comes around. It's clear to me though that they've still not learned from this as they blame everyone but themselves for this debt debacle. Perhaps they will change that stance as the credit crunch looms ever closer, and the whole fiasco unwinds over the coming months and years with spectacular consequences first for the massive housing market bubble, then the wider economy. Let the bad times roll!

Friday, October 13, 2006 05:54PM Report Comment

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