Banks loosing millions on bad debts on unsecured loans. . . .RUBBISH!!
How?
I have had a bank account for 20 years. In that time I have approched them for every type of loan possible. Buying second hand car, Mortgage, Home extention, Busisness startup, Busnises expansion.
I have never once been offered an unsecured loan. Its always been "what assets have you got to cover the debt.
I expect a "Banker" type person will respond to this thread to give a professional view on bank loans etc. but as I understand it, bank loans normally are only granted when the loan is secured against property (in most cases) because it is fairly straightforward to forclose on a person's property in the event of default payments in order that the bank can recoup their cash. It is the credit card build up of debt which the banks do not seem to be willing to curb and the individual's responsibility to to take care on how this card is used.
"Neither a Debtor or Borrower Be" Nicholas Nicklby (Charles Dickens)
Every time I've borrowed money from a bank it has always been unsecured - you just go in and ask for one. The majority of high street banks offer unsecured loans.
Well Real Story last week suggested people could. People who obviously couldn't pay were given loans - including unsecured ones! One bank or building society had to go to court to get one of there loans "secured" on someones house.
Almost all personal loans (car purchase, home inprovement, debt consolidation, etc.) taken through High Street banks are unsecured. TV loan companies may be different.
I always thought it was very bad practice to secure a small loan (less than £10000) against your house?
Originally posted by Archi Tex: Banks loosing millions on bad debts on unsecured loans. . . .RUBBISH!!
How?
I have had a bank account for 20 years. In that time I have approched them for every type of loan possible. Buying second hand car, Mortgage, Home extention, Busisness startup, Busnises expansion.
I have never once been offered an unsecured loan. Its always been "what assets have you got to cover the debt.
So who gets these unsecured loans and how.
Tell me . . I WANT ONE!
Actually it is true but some of them also make millions/billions as well.
Of the £trillion debt in the UK 80% is secured against (largely) property. That is still a very very large amount of unsecured debt which will be split around credit cards, personal loans/hp and overdrafts.
Most people I know have had some sort of unsecured borrowing at some stage of their life - Archie Tex no idea why you have not been able to get one. Have you actually ever asked for a personal loan ?
Although many of them are not really unsecured at all. While the loan is not actually secured against your property or other assets, most personal loans (aka unsecured loans) contracts actually containt clauses that allow the lender to pursue you and your assets in the event of non-payment.
So most unsecured loans are nothing of the sort. If you owe money and default while you own any asset that could repay part of the loan then they can pursue you.
Even these cowboys on telly adverts who are flinging money at anyone with CCJs, been refused elsewhere etc., always specify one thing. If you are a homeowner.
*It is not necessary to understand things in order to argue about them. -- Pierre De Beaumarchais
Originally posted by EstateAgent: As already said, most normal loans are unsecured.
Although many of them are not really unsecured at all. While the loan is not actually secured against your property or other assets, most personal loans (aka unsecured loans) contracts actually containt clauses that allow the lender to pursue you and your assets in the event of non-payment.
So most unsecured loans are nothing of the sort. If you owe money and default while you own any asset that could repay part of the loan then they can pursue you.
Sorry to be a pedant but you're not quite right.
An unsecured loan will remain unsecured until the account has been defaulted, been to court to get a CCJ and then been back to court again to get a charging order. In some instances at the first court date the lender can get a 'forthwith' judgement, in which case they could get a charging order immediately.
Err, sorry to piont this out, never heard of holidays? Never seen anyone put Booze, ciggys or food on their credit card?
Believe me, we are in a world of poo at the moment in this country. Whilst we should have been saving for a rainy day during the boom years, we instead chose to fritter trillions of pounds down the drain in some manic spending spree...
An unsecured loan will remain unsecured until the account has been defaulted, been to court to get a CCJ and then been back to court again to get a charging order. In some instances at the first court date the lender can get a 'forthwith' judgement, in which case they could get a charging order immediately.
No, I was right.
What you are talking about is the process that has to be followed following a default if the contract of the loan does not specify that it becomes secured in event of defaults. This process is unneccessary if the details are in the contract.
Even so, these things are only legal formalities. The fact remains that any debt is secured against assets/money/anything you own if it is pursued through the courts.
I wasn't suggesting that they just turn up and ask for the keys to your house when you miss a single parent.
You are being pedantic... perhaps a little Partridge
Sorry, forgot to mention, secured loans are a great principle, right up to the point the asset on which is secured is revalued DOWN Many of the "homes" which had so called secured lending on are now selling for anything as little as $100 in the US, these are properties that previously were valued in excess of 100K.
I am not suggesting that this will happen in the UK, far from it, but if anyone thinks that a wholesale devaluation of less than 30% average devaluation (before indx adjustment) is not on the cards, needs to do their research. I suggest they google propertysnake (channel 4 forum posting policy safe this way) to get a grasp of actual asking price falls in their area.
