Write off credit cards!

OK, If it was done over the phone what security was in place to ensure they were talking to the cardholder? Snotty question for bank!

How long had they had the card before MIL took it?
If the card had not been being used and then suddenly was used for big bills, in my card company's case this would trigger alarm bells and I would at least get a call, with security questions before purchases would have been allowed through. Why didn't this happen? - another snotty question for bank.


Sorry, I guess you've all gone over this thousands of times I just wish I could think of something useful.
 
I think that in the main people should be responsible for their borrowings but I do believe the banks have caused a lot of problems themselves in that they have been two greedy thus putting people into default situations.

My BIL was happily meeting all his obligations and then became redundant, when he rang his creditors to explain his situation and could he have a payment holiday or reduction till he got himself straight they said no and put the interest rates up instead as being our of work he was a greater risk.

How unhelpful, he is now on a DMP with the CCCS and his creditors get a minimum. Yes his credit history is shot to pieces but who can get a loan anyway these days.
 
And here's me just got a loan to pay my credit card off (lower interest) and have had the limit on the card dropped to £500 so I can keep it for emergencies only. I'd still rather do it that way. It's my debt and I'm responsible for it. End of.
 
I dont agree with this. I see it as stealing. If people owe money to someone else, be it a relative or a bank they should pay it back,or not have taken out the loan in the first place. having said that, the bank should charge a reasonable rate too and not indulge in usury.
If I want something I save up for it or do without.
 
Surely when you out take mortages, loans and credit cards etc you look into your finances and make sure that you can make the repayments required. I think everyone should be liable for their own debts and not to expect others to pick up the tab. If you cant afford it dont have it.
 
I agree Weezy,and that is exactly why OH and I decided to get the "pay as you go" CC from Mastercard instead of a normal one.
With our card,we can only spend what we have put on it although in every other way it functions like a normal CC.


There is nothing wrong with getting a loan to start a business/buy something sooner rather then later/get a better car on finace as long as you check out that you can afford to pay it back before you sign on the line..
 
I was made redundant a while ago- I therefore started paying less off my credit card. I was also late with one payment (although they didnt charge me which was great). I was obviously having money difficulties as I always do and always have paid every month. So what did my credit card do???? Increased my limit to £10k!!! Why?? So I get into more debt and have to pay more back. Where is the morality in that? Its not because they were being nice and thought 'oh lets help that poor customer'. They know I am a good payer and will pay it all back, so they could potentially earn lots of money from me.

Ok it would be my choice to spend it but if I didnt find a job, what would I have done if something expensive happened?? Yes its my fault I dont have any savings but I recently got married so that has drained my balance...! I did not expect to get made redundant, at all.

I agree everyone has the ability to tell between right and wrong and we do all have a responsibility, but banks have totally taken advantage of the spend now pay later attitude- in fact they have helped to create that attitute for their own benefit! And they are earning loads of money out of people who have fallen into that trap. Unfortunately everyone is now paying the price- including the banks because of the people who are taking advantage of loopholes.
 
To be honest i find this incredibly tempting to do as I have £900 on a cc that I am paying off, BUT I also have a maxed out O/D and I really hope to clear both before the baby comes. But I am with weezy on this one.........my morals just tell me its wrong. I spent it and I knew the terms.

And that couple disgusted me. What on earth were they doing to have debt up to 100k that are NOT mortgages? and the huge amounts on credit cards?! More fool the banks for giving them it, but they seem like a couple that need to get a reality check! They now owe 100k anyway - cant they just sell their posh flat? I am guessing that is their flat that the thing was filmed in?
 
Dieseldog,

I second the advice to speak to Citizens Advice. Not all branches will have someone with the knowledge to advise but they should be able to help find a Solicitor who will give at least 1 free meeting.
The Police don't actually have power to deal with card fraud. Legally it is the banks responsibility to deal with it & obviously they will go for the easiest target to get their money back. Where a relative is involved the immediate suspicion will always be collusion (because very, very often it is!) so your sister will need someone with appropriate legal knowledge - Joe Bloggs Solicitor on the High Street may not be the right one. A bit of time googling may also help find a Solicitor experienced in this area.
 
Goldenboy,

Did the bank force cards on this couple & march them to the shops to make them spend.
Maybe (but most likely not) the husband was running up debts without the wife knowing, but don't you think that was HIS responsibility, not anybody else's. I have a friend in a similar position but she is aware enough to realise that she was turning a blind eye & not asking questions about how all the lovely things they had were being paid for on the money he was earning.
 
[ QUOTE ]
Goldenboy,

Did the bank force cards on this couple & march them to the shops to make them spend.
Maybe (but most likely not) the husband was running up debts without the wife knowing, but don't you think that was HIS responsibility, not anybody else's. I have a friend in a similar position but she is aware enough to realise that she was turning a blind eye & not asking questions about how all the lovely things they had were being paid for on the money he was earning.

[/ QUOTE ]

Im not in any way condoning what these people did, but there are other cases where people have got into bad situations through no fault of their own, for example I know someone who unluckily got cancer, she was unable to work for quite a while, the cc companies refused to give her a payment holiday or reduce charges, and out of a 7k bill 3k is her spending..

All these guys that went to court did was expose the loopholes. I too cannot understand running up that amount with no mortgage to show for it either.
 
[ QUOTE ]
At long last my OH has finally found something that he can get his teeth into.

You know all the stuff with the banks and their charges getting refunded..

Well stage 2, if you own a credit card, taken out before march 2007, we with the help of a group of solicitors are going to help people right the credit card off...totally! credit card companies have broken the law in their terms and are about to pay a price..lol. Barclays alone have started taking on new staff and have set aside 8 billion to cover costs of refunding peoples credit card totals..OMG how wicked is that, and at a great time, credit crunch and all..lol.. The best part of it is, people have nothing to loose by finding out if their card qualifies to be written off..

After our business went down the pan, thanks to so called friends, ive been waiting for my OH to get his drive back..well this has done it...Welcome home hunni!.. :P ;D

[/ QUOTE ]

Why would you want to do such a thing? I think its dishonest to the point of stealing if you took the card out and you ran up the bills you should repay it.... In such a dire time for all Banks included surely you must realise someone somewhere will have to pay for it and that will probably be the likes of me
mad.gif
 
There's a big differences between the people who are looking to wriggle out of a debt (won't pay) and those who feel they have a valid dispute with their bank, and therefore are using the CCA 1974 to protect themselves.

My halifax cc charged me PPI which I never asked for or indeed claimed on, I asked for all of the info on the insurance, nothing....
It appears they have been charging for a non existant policy
blush.gif


I asked for the money back they refused, we are now having to got to the FO to try and get the insurance money back
frown.gif


Anyone who wants to know the full story regarding banks, credit cards, etc should visit www.consumercreditsupport.co.uk

You will see that not everyone is trying to get out of paying their debts, some have real disputes and basically the banks don't want to know......
 
Goldenboy,

It wasn't the fault of the banks that the people you know got made redundant either so why should they pay. At the end of the day if people don't pay their debts with interest the banks don't make money & can't lend money to anybody, even the careful, & that is not a situation that would be good for society.
The safest thing to do is to remember that most people are only 2 pieces of bad luck away from poverty & plan your finances that way i.e don't run up a load of debt that you couldn't cope with if you lose your job. And before you think it, no I don't come from a wealthy background & I do know what it is like to be really, grindingly poor (& homeless as well).
 
It's not just outrageous spending that racks up debts. Please remember that. Sometimes its just not possible not to borrow money for simple bills or unexpected circumstances.

However that said i do NOT agree with the OP about writing off your credit card. I do however wish that the banks could be more helpful in difficult situations.
 
I agree that sometimes borrowing is unavoidable - but that accounts for a very small proportion of debt and all too often is from sub prime lenders rather than banks. But still once you have borrowed the money, why, other than goodness of heart should anybody let someone take an interest free payment holiday? If your boss said "I'm a bit broke this month so I'll pay you next month & won't compensate you for paying you late" I'll bet you wouldn't feel well disposed to them. And that interest you pay on your credit card or loan doesn't all end up in the shareholders pockets - some of it pays the savers etc who supply the money to lend, some of it pays for the very expensive computer systems that enable you to make transactions, some of it pays the nice people on the counter & a horrifically large part pays for the spending of people who either don't pay their bill or are fraudulently using someone else's account. It may come as a surprise but a lot of banks don't make money on unsecured personal loans but are scared they would lose customers from business they do make money on if they didn't offer them.
 
I agree with Weezy and co. NOBODY FORCES anyone to get credit cards or debts. Most loans come with Protection available, if you don't take it then you are still partly to blame, should something unexpected - like redundancy - happen.
There are genuine circumstances that require help, and CAB etc will help these people to sort it out somehow.
If you cannot afford something, then save up for it.
 
But banks have lent to people who clearly cannot afford the re-payments. My point earlier- when I was made redundant my CC was offering me MORE money than they EVER have!! Yes I know they have to make money, but a pretty calous way of making it. If they havent followed their proceedures and ensured they have all signed copies of paperwork, can you really blame the people who are taking advantage of that.

I fully intend to pay all of mine back but I can see why people have got in a mess- the banks have taken advantage of some peoples bad missfortune. So in my opinion the banks are to blame for this- they took advantage of some people and now people are taking advantage of their mistakes.
 
I dont have a problem at all with real disputes its the ones trying to clear all the card debt as OP suggested...Hell if I was charged for insurance I didnt ask for and indeed turned out to be non existant I would want those payments back too..
 
toomanyhorses - ask to see a copy of your agreement. For PPI you will have had to tick a box and sign in an additional bit.
Dieseldog - how quickly did your Sister report the card stolen? I have a feeling it's meant to be within 24hrs. How did her Mother-in-law spend the money? If it was in shops she would need the pin number. If that was divulged or written down and kept with the card this breaches terms and conditions. Of course on line this wouldn't be needed but she would need the actual card for the 3 numbers on the back of the card. As for changing address, she would need to know the password on the account that your Sister set up (probably mothers maiden name). If that isn't known, they won't do anything.
--------------------------------------------------
Unbelievable some of these comments (not the ones I've replied to above). For Mortgages you go through a credit score then an affordability calculation. If your credit limit is raised and you don't want it then ask them not to increase it. Of course it MUST be the banks fault that people spend it??!!!!!!!!!!! Life, critical illness, accident, sickness, unemployment cover etc is advised on as something to protect people should they fall ill or loose their job. It is recommended if there is a need and will cover the debt should anything unforseen happen. If it's recommended but not taken then it's not up to the bank to pick up the pieces. Nor is it up to the bank to tell people when not to spend. PPI gets bad press but how many people bother to see how much is paid out every year? Not many...and trust me...a LOT is paid out.

As for claiming back credit card debt through a loophole?? Unbelievable.

I know bank charges are harsh but if people actually read their terms and conditions they'd see that they are signing and agreeing to these charges when they open the account. Charging the small minority who do breach terms and conditions means those of us who do manage their finances (and go without to afford things) don't have to pay a fee to have a bank account.
 
But it is the responsibility of the person BORROWING the money to ensure they can afford the repayments, not the bank.
 
Goldenboy, Correct me if I am wrong but I didn't think "written off" was the correct term to use for the section 77 procedure. My understanding was that failure to provide the debtor with a copy of the original agreement just meant the debt was unenforceable at that time i.e the debtor can't be taken to court but the debt of £x amount still stands and is owed by the card holder. So if the agreement is ever found the debt could be enforced again. In addition I think credit rating is affected for a lot longer than 6 months so in the long run this quick fix might not be the right answer for a lot of people.

I agree with the simple idea of you borrow money so you ay it back.
 
Surely if you are old enough and clever enough to take out a credit card and use it, then you are old enough and clever enough to know that you are going to have to pay the money back at some point?

Why should someone borrow money and not have to pay it back? Sounds pretty weird to me.

The banking industry is in enough trouble at the moment. I will be seriously hacked off it lots of people do this and put MY money that I have saved in jeopardy.
 
[ QUOTE ]
I see. I think it is bloody dreadful to be honest - encouraging people to spend money they don't have and tell them that they can write the debt off. It is akin to stealing. If you don't have it, don't spend it. Sorry, I know that a LOT of people will be affronted by those comments, but I don't see why it is fair for people who incur thousands of pounds of debt to be able to just say "ho hum, never mind" and walk away from it whilst retaining all the goods they purchased. I have a credit card, I pay my fees...those fees are the ones will go up because of this - not fair. And yes, I could play the game, but I just couldn't, my morals just would not allow it.

I am not judging anyone, but I think people should accept their debt and these days fewer people are doing that and that is why so many people are in the cack.

[/ QUOTE ]

DITTO!!
mad.gif
In the long run it's people like Weezy and I who'll be paying for other peoples extravagances. Appalling. You shouldn't spend what you don't have.
mad.gif
 
Its ok people getting their pedastals about credit cards but what about the rest.

But its not the publics fault this country is in a recession, it is the Banks fault for Gambling with your money, yes Gambling. Its the governments fault for allowing any tom fred and harry in to this country to work for cash in hand but still able to access your NHS that YOU paid for, and to be here a matter of weeks or a couple of months before they then can claim on the state, get given houses and social security benefits again Your money. Its not the publics fault that when the government bailed out Banks, yes they have dropped interest rates, but also alot of dropped tracker mortages so people will still struggle. Its not our fault the country is in recession, people are loosing jobs they have had for years, jobs that paid for their credit cards, even if they had Payment Protection that only covers it for a while. The CC companies sting you for whatever they can, they are happy to give it out but not happy to help for a while when the going gets tough. Its not our fault that electricity and Oil etc have gone up as much as they have, ok they might be starting to drop now, but thats after people borrowed to pay the bills they could no longer afford. For example last winter it was costing me over £200 in oil a month to heat my house conservatively im already watching the oil drain away, im dreading it.

My dad, retired 5 months before he was 65, he was a long distance lorry driver and couldnt do the hours anymore, he went into the social security offices to be told because he stopped his job himself it would be at least 3 months before they got a penny to help them live. They told him to go back driving, he couldnt find work anywhere else, do they not realise what damage a 40 ton truck can do when you fall asleep at the wheel? He had been paying his stamp since he was 13, and they couldnt find there way to help him for 5 months before his pension kicked in. Ok a bit of a tangent i know, he took out a credit card to help him survive, what else could he do? I paid it off for him when i found out, but what im trying to say is when you are desperate you will turn to any means to survive.
People dont take out credit cards with the intention of never paying it back, my sister in law took out a credit card 20 years ago, they had a time when my brother was made redundant, they lived on that credit card until he found work again, 20 years later that credit card is still there and they are still paying it off, as each time theres been a job change or health problem they have ended up living on the credit card because the goverment wont help enough.

How many people do you know that are self employed, or work cash in hand, do you honestly think they are paying the right amount in taxes or contributions? if they have a decent accountant the account will be getting them to pay the least amount possible and using whaever loopholes there are to get away from paying, if they are cash in hand most probably arnt even declaring it, your paying for them too and for your goverment ministers to have second homes and cleaners etc etc.

Im not saying its ok for people to get credit cards with the intention of never paying it back is right, all im saying is you live to your means, you may be ok paying for now, but what will happen if your hubby got cancer and couldnt do the same high powered job anymore, got late and behind with payments, the recession means they dont have extra money to pay off the debt and are very lucky indeed if they can meet minimum payments, you never know what is around the corner, and the credit card companies know this. They want you to get behind they want you to fail to pay.

You know when my daughter turned 18 she was offered credit cards and loans, they were coming out of her ears, obviously we advised against it. Luckily she took that advice. But when her car died recently she went to the banks to ask for a short term loan, she only wanted some money till her wages went in the bank. she was told she cant have one as her credit rating is poor, why was it poor, she has never been over drawn in her life she has a good salary, she has been employed since she left college. The reason given is that she hasnt ever had loans or credit cards or a repayment history. So are they forcing the cards on people, in my opinon yes, becasue to have a good credit rating you need them.
Im sorry but they want people to get into debt before they have a good credit rating then in my opinion its all wrong and these loopholes need closing to help prevent an awfull lot of people getting caught in their trap.

Sorry went off on one a bit there..
 
Some of the banks have been downright irresponsible in encouraging people to loan money they cannot afford. I have little sympathy with Barclays. Some years ago my son ran up a £4000 overdraft during a period when he was suffering his first psychotic episode (he is schizophrenic). When we discovered what had happened we paid off the debt. About a year later my son became ill again and we warned the bank, telling them not to allow him any overdraft. The bank ignored us, my son spent and ran up an overdraft of £3,000 before he was sectioned and admitted to hospital. When he had recovered and we discovered the debt we went to the bank to discuss what to do. My son was not in a position to pay back the overdraft. The advisor at the bank turned to me and said 'can't you help'. I'm afraid I answered with a firm NO.
 
It is true that having a card helps your credit rating but only if you pay it off!. If you dash out & spend what you can't afford to pay back it doesn't help a little bit. If you make e few payments for things you would do anyway, pay off when you get the statement job done. You can then safely cut the thing up & not use it again, it's done it's job. The banks are still not forcing people to get into debt they can't pay back. Re you Dad - he only had 5 month to 65 - did he have a pension scheme that he could have claimed early retirement through? If he didn't how was he planning to survive post 65?
And I don't think immigration policy is in the remit of the banks either.
People will always fall into difficulties & I am well aware that both OH & I work in areas that have been hard hit recently, are nearing 50 & our rainy day savings have taken a major hit because of structural problems with the house so it could very easily be me in 6 months. But the important thing is always to plan your spending so it's not all committed each month & you can pull in your horns when a crisis strikes. For that reason we are not booking a holiday, not buying new clothes unless they fall apart, having a jacket potato for our main meal 3 times per week & generally making do & mending as much as possible.
There are a lot of things in the banking system that are far from ideal - the basic wages of the people who service customers making them reliant on commissions is just one of them, but the financial literacy of the majority of the population, even many well educated & intelligent people, is appalling as well. If you ever spent a spell working in the fraud or debt recovery areas of a bank it would really open your eyes! I was doing some work for a corporate card provider when a call came in from a man claiming a transaction on his card was fraudulent - it was for a Bangkok strip joint. The staff were falling about because they got so many call claiming that this type of transaction was fraudulent that the particular club in question kept a photographic record of everybody who paid by card & sent a copy through when the transaction was challenged - the number of successful charge backs against then had gone down to 1 in the last year from 10 per month in the previous year. Guys were quite happy to spend their money there until the wife/boss saw the transaction on the statement. Something like 80% of fraud claims for spend on pornographic internet sights turn out to be false - very often the guy will phone up the next day when the wife/girlfriend isn't there & confess, but by that time the whole process with associated costs has been started.
And the number of people you get on the phone asking for payment holidays (with suspended interest of course) while continuing to spend at designer stores is unbelievable. Suggest theat the card is suspended & you get an earful of "How am I meant to eat, you will starve my children". The trouble people who have genuine difficulties face (such as those who's details have been genuinely stolen by a family member) is that the people on the other end of the phone hear the stories 100 times for every time it is true & that is bound to affect how they respond. I know a several people who have debt problems & for only one of them is it down to bad luck & that was a run of about 5 things & nobody could be expected to plan for that many things going wrong.
One couple - started up their own business & instead of ploughing money back in until they are established treat it like a personal cash machine - first bad debt they have no capital back up & they are in trouble. This is the second time they have done the same thing. Another guy lied about his income to get a bigger mortgage than he should, now been made redundant. Another one is maxed out on 3 credit cards, daren't open his post, just booked a holiday in Dubai for Christmas. Another woman jacked in her job before getting another one because it was boring, didn't stop spending either, now she can't get a job. I've got no sympathy for any of those. But the person I know who got made redundant from the job she'd been in 3 months, just before her self employed husband got injured in a head on collision with a drunk driver & is trying to care for her mother who has just had a stroke & now her child is ill does have my sympathy &, funnily enough, her bank helped by putting her in touch with someone who could give her independent advice about how to sort out her finances & claim benefits as well as by sorting out a repayment plan.
 
I agree you should pay for what you spend. However, its by the grace of god that all of us here have internet connections and homes to be in. No-one knows what is round the next corner. I had to resign from a highly paid job due to ill health. I never thought I'd be too ill to work. I doubt I'll ever work in such a job again. I had to sell my home to support myself so thankfully I have no debt. But what about people that have no home to sell, or, who are now in negitive equity? Payment Protction is a joke. Often it doesn't kick in for 6 months (so get sick or lose your job within the six months of taking it out and they will give you nothing) and it will not cover you for pre-existing conditions. I may not always be in remission, so what's the use of a policy that won't cover me if I get sick again? Basicly its usless. It doesn't last long either and this recession doesn't look like its going to end any time soon. I think the real figures of those being made redundent are a LOT worse than the press are letting on.

So what happenss to people that have no job and no hope of a job? What will happen to me when my savings run out? There are no council houses - if I'm lucky I will get a bed in a homeless shelter. I can stand losing my horse, but I can't stand losing my cats. They are all I have. My only option is suicide. Is that really what I deserve having worked hard all of my life, paid massive taxes, never claimed benefits etc etc - to die living rough on the street? I am the tip of the iceberg - there must be thousands facing suicide or the street this Christmas.

The fraudsters should not get away with taking banks for a ride. They should be cracked down on very, very hard. However, those people that the banks unfairly target (such as the depressed, the unemployed, the desperate etc) should have some sort of sympathy and help.

The government needs to do more to help people that are genuinly in trouble. After all if you and your children haven't eaten in days and you have a credit card, no matter how strong willed you are about debt - you will use it. If there was housing and benefits avaliable to those in need then the banks couldn't take advantage in the same way. Until the government sorts the housing and benefits system out then more needs to be done to help people that have had no option but to borrow from the banks on credit cards.
 
You must log in or register to reply here.
Top