LATEST NEWS - CAB Blames Lenders on Loans Default
The Citizens Advice Bureau has blamed lenders for the huge debts accumulated by people in the UK who are now unable to repay their loans.
Citing a number of cases, in a report, in which its bureaux across the country had dealt with, the advice agency said on many occasions people who had taken out loans from banks, whether secured or unsecured but found themselves in trouble with repayments, often discovered their lenders were unwilling to assist them.
In one case, for example, the CAB said a man who had taken out a secured loan for £85,000 including payment protection insurance (PPI) was not told the loan was a variable and the cost of PPI was extra £21,000 until he received the loan agreement.
Further explaining the causes of mounting debts in Britain the CAB said bad marketing for lending which encourages irresponsible borrowing, lending without a prior check on borrowers history and ability to repay, sales of the wrong PPI to borrowers, offering consolidation loans, secured and unsecured, when borrowers face financial difficulties etc were among the main factors.
It thus urged lenders to ensue that loans were affordable and suitable for the needs of borrowers when taking them out. And that they should encourage borrowers to borrow responsibly.
The Credit Crunch - Is The Bank of England Trying to Hide Something??
The Bank of England has recently come under criticism from other lending institutions, such as Citi Financial that is being too optimistic about the current credit crunch that exists in the economy.
According to industry experts, the downturn in the economy due to the increased costs is causing job losses in all sectors of the economy and is likely to worsen before it starts to improve.
In the Stability Report recently published by the Bank Of England it was stated that the bank officials feel that other banks are being overly "pessimistic about the losses stemming from US mortgage meltdown." It goes on to state "while there remain downside risks, the most likely path ahead is that confidence and risk appetite will return gradually in the coming months" and that the reports of massive losses are being exaggerated.
The Bank of England actually blames some of the problems in the financial industry on the bonus structure offered by many banks in an effort to entice more customers.
Source: The Thrifty Scott
If you are feeling the effects of the credit crunch with your financea and struggling to keep up with repayments on Un-secured Loans or credit repayments we may be able to help, call us free on 0800 028 4422 and speak to one of our expert debt counsellors now.
