Negative Equity or near to it

[Max]

In our local paper this morning there is an intersting letter from an accountant. Because house repossessions, debt problems (among all classes) and rising unemployment are increasing here at an alarming rate he said that hire purchase companies, credit card firms and banks take a more lenient view of difficulties because "what people have not got, they cannot pay". Is he right?

[MelanieGiles]

I think that lenders are far more receptive these days to customers in financial difficultires, and the BBA code of conduct requires banks to treat customers fairly and sympathetically where there are problems, and work with them in an attempt to resolve them.

[Max]

Melanie, may have found someone (the letter writer) with technical know how to help with the project we want to get going up here. I think I know who he is - he is not an IP. Papers on their way to you- I watched the postman empty the box- do not want Murphy's Law to apply! David

[stoneyB]

Do you not think that it is in the banks best interests to encourage people in difficulties to speak up. That way the banks can quantify how much bad debt they are holding?

[Max]

Yes I do, but I found debt problems very embarrasing and could not bring myself to do it. Fear I think of what they would say and do.

[kallis3]

I find it embarrassing as well. .

I remember some years ago when I was having problems and had to grovel to Halifax to ask for a payment reduction. I was told to take my card into the local branch. The only one I could get to in the week was in the centre of Birmingham, where I worked.

I went in at lunchtime - it was crowded - had to stand in a queue and explain to the girl at the counter, who had to call someone else and she came out and dealt with it in full view of the entire branch! Ok, she didn't shout it, but it was pretty obvious what was going on.

I just wanted the floor to open and swallow me up![:(]

[Max]

Jan you may know the answer to this (think I am going brain dead) - the accountant's letter also said that negative equity will help people with HP firms, credit cards, banks etc - how? Presuambly because there is nothing for them to grab but they will still take charging orders I suspect. David

[kallis3]

Not sure David. If you have HP, particularly with cars, the company can snatch the goods back dependent upon how much you have paid.

They can still get charging orders and they can still make you bankrupt if they wish.

I think there are a lot of people on here who would disagree that the companies are taking a more lenient view of financial difficulties.

[Max]

From what I have read on here you are right!

[MelanieGiles]

That is great news about your contact David. Do keep me advised both on and off the forum with the project.

[Max]

I certainly will Melanie - something has got to be done - had some shocking news I've been sitting with the wife of a parishioner in our parish at the hospital - that is why I have not been on here- husband attempted suicide - debt. His wife came home from work and found him. The PP came to get me because I am a friend of her husband and I never knew- never even guessed. I thought he was off colour no more than that.

[MelanieGiles]

Is there anything we can do to help the debt situation David?

[David Mond]

Banks and other lenders are becoming more receptive to debt - but it will take time to work through and any new ideas/projects are welcome elv5 so keep me informed as well.

Please (if you have not done so) read one of my postings on my blog entitled SOMETHING TO AGREE ON (the Governments latest initiative).

[Max]

Just to keep you updated; the man's wife stayed the night here - J is taking her to the hospital later - he is going to be ok. PP is going as well and as soon as I get some information I shall post it for help will be needed somewhere along the line.

[ivas4us]

I don't know how you manage to help so many people. You are really becoming a true marter to helping so many people with debt problems. Keep up the great work you are doing a fantastic job.