SHOULD CREDIT CARD COMPANYS REVIEW YOU

[johnpaul]

i would like the experts on this one would it be nice if one day banks who do loans and credit card providers review you over the telephone every 12 months to see if you are happy and to see if you are in deep in debt and to see if theres anything they can do to help you regarding your issue if you are finding it hard to pay your credit cards and loans each month before all hell breaks loose and you yourself have to take it to a dmp company or do a iva or go bankrupt i feel that in my case i wanted gadgets kept buy buy buy more going out then i have coming in credit card companys like mbna kept giving me more and more credit what i should have done is to say no no no to them any thoughts

JOHNPAUL

[sonyse2t5]

MBNA is known to lump credit on top of credit,then you max it out - go bust. I've IVA them and they sold the debt on getting probably very little back! I hate this US Bank.

[johnpaul]

also capital one do this as well in most cases mbna sell of the debt after 6 months to max recovery and hfc and hsbc do

JOHNPAUL

[whichwaynow]

To be fair to some of the lenders they do seem a bit more carefull now. I owered a lot of money but had not maxed out all my cards by any means. The lenders must know I was having some sort of problems as a few of them did send me letters reducing my credit limit. Ok it was bit to late for me but they do seem to keep a eye on how much you owe on your credit file these days and if they feel you are not paying it of they do take action. Even before I went in to my IVA I had a letter from HBOS offering me free debt advice, and I am not talking about a loan either.

[aguise]

Yes mbna actually reduced our credit limit shortly before we went for the iva. I think they are starting to take note, unfortunately you are in too deep by the time they do it, but they do seem to be coming more aware.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[johnpaul]

i think the only way is for us to spend less on credit cards and loans and put money aside instead i think credit card companys should say eg if you owe 5k on a credit card you pay £500 per month so that you are paying back 10% of what you owe to stop people getting deep in the red in debt

JOHNPAUL

[jpj]

If Barclaycard had a conscience it would have gone bust years ago!! should every off licence sell you only 3 cans of beer in case you become an alcoholic?? As I have said before debt and credit is a part of life and its not going to change!!
For every one of us on this site that couldnt cope with their debt, there are probably 50 out there who can...Yes im glad to see companies are now getting a little more sensible with their lending criteria,but thats more down to public outrage than sincere care for their customers!

[johnpaul]

hi jpj for that i get loads of credit card companys 3rd party letters offening me credit cards and loans i think that should stop as i see this as a very easy way to get in to debt if you say yes every time to every single credit card company out there sending letters out saying we have a credit card with your name on it 10k limit etc etc its far to temting to think about

JOHNPAUL

[jpj]

Well at least now you have 5 years to learn to ignore them!!!!

[johnpaul]

hi jpj the iva meeting will be very soon but i think that credit card company and loan companys should do credit checks on the person who as a account with them to see what level of debt they are in before they go deep in the red

JOHNPAUL

[thebear29uk]

Hi all

Barclaycard are now reviewing all their customers. This was taken from the BBC website.

There are further signs that the days of easy credit for all are coming to an end. On Monday Barclaycard confirmed it had reduced credit limits for 500,000 of its customers. A Barclaycard spokesman said a review the credit-worthiness of all its 9.6m UK customers had begun last year, and was not linked to the Northern Rock affair.

We became aware in 2006 of the growing potential problem of bad debt, and our review was a response to that," said the spokesman.

Affected by the restrictions are the so-called "risky" customers: such as multiple credit-card holders who borrow to pay off their loans. For the first time Barclaycard is turning down more potential customers than it approves: latest figures show that the company granted credit cards to just 48-49% of total applicants.

Apparently they are also looking at people who are constantly up at their limit and paying only the minimum per month and also people doing lots of cash advances.

The article ends with:

He predicted: "From now on banks will be much more careful about lending. The underlying quality of loans will be improved and lending criteria will become stricter. There'll be an increase in the pricing paid by companies and leveraged buy-out pricing will increase.

"The winners will be commercial banks who lend off their own balance sheets: the losers will be the CDOs (Collateralised Debt Obligations) and companies that mimic banks but who have no cash of their own, or lack large bank backing. . And because the private cash pool has shrunk, private equity companies may have problems doing the same type of deals as they have done to date."

The lesson for borrowers - both domestic and international would seem to be this: if you are seen as a "good risk", your chances of obtaining credit in the current situation would seem to be largely unaffected.

But as more firms adapt the Barclaycard strategy of weeding out their sub-prime borrowers, so times will get tougher for those who often need the money the most.

Regards

Dave

[MelanieGiles]

The banks are still making lots of profit from their unsecured credit card loan books, and would probably not want to pay for resource to just see how their customers are getting on!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jpj]

exactly Melanie...Hence Experian and Eqifax ! Any lender can see roughly how you are getting on in life if they read between your credit file lines![8)]

[iva-solution]

I think there is an inherent problem in that some of those who are the most heavily in debt are those that are afraid to admit to a problem for fear of losing the credit facility. When you are relying on living on credit cards to meet your day to day expenses (not a good place to be, but it happens) then the thought of losing something you are relying on brings on major panic. It takes major courage to come out and admit that you have debt problems - how many people would just lie through their teeth and say everything is fine?



http://www.iva-solution.org.uk

[whichwaynow]

If the CC companies had taken in to account what I earned then there should have been no way I should have been able to run up the amount of debt that I did. Ok I did spend it at first but allowing me 20 cards was just outrageous .