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Stornoway

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Everything posted by Stornoway

  1. Not sure what this has to do with me ? But picking up your point about the creation of credit - the banks can create all the credit they want they but still have to have LIQUIDITY to be able to provide physical cash or phyiscal balances to customers. The banks could only do so whilst they themselves were able to expand their balance sheet by borrowing - they cant now do so because nobody is prepared to lend to them.
  2. Personally, I'd offer them an amount rather than ask them to give you the figure (they'll likely ask for the full amount). Getting them to accept 80% of the amount outstanding is normally fairly straightforward so maybe start with 50% ?
  3. Sorry for being pessimistic but ; 1. the fact that the loan / card is unenforceable arguably doesnt stop them chasing you for the debt because it still exists so they will continue to write to you to look for the money. I have this problem with HSBC. 2. as the physical credit agreements do exist they may well try and take you to court and you are then you woud be trying to justify your position on some technicalities. You may be right in saying they are unenforceable but the judge might not be persuaded in which case you would have to appeal - unenforceable agreements are not as straightforward a process as some people make out. 3. even if there is no physical agreement (as is the case with me with HSBC and RBS) they may still refuse to remove the default and you are faced with taking them to court to ask for its removel - again not straightforward and lots of hassle.
  4. Noomill I was kinda hoping for a resolution by the autumn - what makes you think it will be next year ? Also can anyone tel me what comes next - it all seems to have gone very quiet. Thanks
  5. Now only 2 guests - was 4 earlier.... Hello Experian [waves]
  6. I've chipped in a fiver - wish it could be more ..... Best of British ..... Anyone wishing to donate please note that the link is https://www.paypal.com/cgi-bin/websc...ton_id=2638492
  7. I'm not sure that a CCJ is inevitable - if they go to court then the judge should order you to pay only what you can afford which could in fact be less than any payment plan you agree with them now. My experience is that if they do have an enforceable agreement then you should open a dialogue to agree a monthly repayment.
  8. I'm a bit rusty on this but in scotland I think the husband would be asked to sign a matrimonial homes act affidavit with the lawyers completing the house purchase to say that nobody else lives there.
  9. My tuppence worth is; 1. base rates probably have a lot further to fall and at least some of the reduction should be reflected in your lenders SVR so it may not be best to go for a fixed rate. 2. I was advised last year by a broker that defaults are ignored by lenders if they are more than 2 years old so depending on how old yours are they may not have a huge impact
  10. The sad reality of life is that you cant have a strong economy without a strong banking system. What we need is to make sure that the banks become more transparent, better regulated and more risk averse. Me too ....
  11. We dont have an economy based on the housing industry. in recent years we have built about a third of the number of houses built in Spain despite having a little under twice the population. The Spanish and Irish economies are much more reliant on the construction industry and consequently are much worse off now than we are. One of the reasons that we have had a house price buble in the UK is that we havent been building enough houses - partly because people are priced out the market and partly because our planning regulations are too strict.
  12. So you are basically a communist ? The banks have messed up in a big way but many of the management teams have been changed and risk appetite is going back to where it was 20 years ago. Personally I'd much rather have the existing banks remaining with much tighter regulation and new management than a banking industry run by Cameron or Brown.
  13. The problem with the super rich is that they became greedy so yes they did sell properties when the market was rising but guess what - they reinvested into bigger property investments much of which is partly funded by debt and will be repossessed by the banks when they breach Interest and /or LTV covenants.
  14. No. The banks cant magic up / create new loans without a corresponding entry on the other side of their balance sheet - either customer deposits or new equity or from profits. In recent years the new mortgages havent been going on their balance sheets because they have been parcelling them up into large securitisations and selling them to investors as loans. But ... the investors still have recourse to the banks because they have the right to get their cash back at some point in the future. Until recently that has been fine because there has been lots of new investors out there but now there are none and all the existing investors want their cash back. If they repossess they may not have enough to repay the securitisation investors and the shortfall comes out of their profits.
  15. Yeh, very funny. Here's the real story; 1. for the last 8 years or so the banks have been inflating their balance sheets through securitisation (doing lots of new business, giving away easy credit and selling off chunks of their mortgages and loan books to investors). This allowed the loan chunks they sold to be taken off their balance sheets. 2. unfortunately many of the securitisation sales transacted by the banks were for quarterly periods only - ie the people who bought the chunks of mortgages could hand them back every quarter if they so wanted but normally they jut kept rolling the loans over each quarter. 3. lots of the investors took fright and handed the chunks of mortgages back to the banks. 4. lo and behold the banks dont have the money to pay back all the securitisation monies because they used the cash they received to fund even more new mortgages. 5. the banks effectively run out of cash and have to go cap in hand to the government. The bank of england then buys the loan chunks through the special liquidity scheme. However the BofE scheme is expensive so the banks only use it as infrequently as they can. 6. this takes all the surplus cash out the banking system and the banks have no money to lend. 7. some of the banks do issue longer term securitisations and other banks buy these as investments. The value of these investments goes through the floor because nobody wants them and the underlying mortgages are of poor quality. This destroys the balance sheets of many banks. 8. the banks go cap in hand to the govt for equity to repair their balance sheets 9. the banks also face heavy losses because we are now in recession, people are losing their jobs and they cant pay for their mortgages. 10. House prices crash so when the banks eventually reposess they dont get all their money back. They consequently post losses which impacts on their balance sheets and means they have even less ability to lend. 11. the banks get nervous over new loans - why would they lend 90% LTV when house prices will probably drop 20% and many people may be losing their jobs. 12. house prices crash because nobody can get a loan and every body is scared about losing their jobs. Its a self fulfilling prophecy...
  16. "Personaly I dont think the world will ever be the same again, but thats probably a good thing. :-)" It wont be the same for a long time but people / banks have a short memory - 10 years from now most of the senior politicians and bankers will have retired and it will be another boom and bust. The world has a recession every 8 to 10 years; - 2008 credit crunch - 2000 dot com bubble - 1991 ERM / devaluation of pound - 1981 energy crisis - 1973 oil crisis etc etc This recession is a bad one but we will survive it and on the other side we will be in a better place as a lot of the excess / greed will have been taken out.
  17. "Do you write speeches for Gordon Brown in your spare time ?" If you really want to know then I think Brown, Blair and Bush (and their Fiscal policies) have got us into this mess by lack of regulation and encouraging people to borrow and spend. Our country has also become way too focussed on the service sector and let the country's manufacturing industry go to the wall. But then hindsight is a great thing.... I took a degree in economics a long time ago but if you want to believe some of the stuff on this thread then on you go. I do however guarantee you that base rates wont be above 3% by the end of the year.
  18. PS: 1. The moon landings did happen 2. JFK was shot by a lone gunman 3. It was a weather balloon at Roswell not a UFO 4. There was no image of satan in the fire at the WTC
  19. What a load of guff. There is no way base interest rates will be above 3% by the year end never mind mid to high teens. That is complete scaremongering and there is enough negativity around just now without nonsense like this. 1. The government is not talking about physically printing money. They are talking about quantative easing which is all about going into the market to buy corporate bonds. These bonds are they way in which large companies raise finance (they basically sell the bonds to investors and use the cash to finance the company). There is no market for bonds at the moment because all the investors are risk averse so the govt is looking at buying so that large companies can obtain finance. The govt's action will be in replacement of the role normally taken by investors and hence little impact on inflation. 2. Inflation is all about supply and demand not the introduction of more paper money. If demand is high then prices go up. If supply is low then prices go up. We have had problems with inflation in recent years because people have been pushing up demand by borrowing and spending what they dont have. 3. Deflation is largely caused by people deferring purchases - ie why would i buy a big new house now when I can wait a year and it will be 10% cheaper. Hence no demand for houses with too much supply = lower prices. 4. Inflation means the price of debt goes up. Wrong. Inflation means the value of your debt in real terms goes down because the value of the loan diminshes as inflation impacts. The price of the debt only goes up if interest rates go up. We all need to get a grip in the UK and have a reality check. Times are tough but the world will survive. A year from now we'll be coming out the other side of a very hard recession but many of us will still have good jobs, asset prices (including houses) will be much more affordable and the world will hopefully have learned a valuable lesson about how we should be living a bit more within our means.
  20. Newman backed down quite quickly with me when I insisted that they remove the admin fee and they also eventually agreed to a monthly repayment plan but they are very aggressive. You have to be very strong with these guys !
  21. http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/130659-dca-chasing-english-cc.html?highlight=living+abroad+ccj Welcome ! The above thread should help you.
  22. Great advice - Larissa you should use this exact info to write to Amex to tell them to remove the fee.
  23. Sorry, it was about 12 months back and I cant remember who it was. I do remember that they were based in the centre of Glasgow, which is getting closer to home for me (!), the account was enforceable and to be honest I really needed to get them off my back - they were very aggressive. After Northern Rock, Amex and their DCAs are the worst I've dealt with. Cheers
  24. I eventually settled with Amex for 85% of the amount owed - they were very aggressive and had transferred my account from Newman's to a Scottish firm of solicitors in anticipation of taking me to court or launching bankruptcy action. From the previous posts here it looks like the agreement is enforceable so my advice to you would be ; 1. Open a dialogue and negotiate a monthly payment that you can afford. They may threaten you with court action and seek unreasonably high monthly payments but be brave because at the end of the day if they do take you to court then the judge is only going to allow a monthly payment that you can afford to pay. Point this out to them and seek the help of the citizen advice bureaux or someone else who ca help you work out a budget. 2. The £1400 is unacceptable. Write to them telling that they can only charge an admin fee if it represents the true costs of the work involved. This worked for me and they waived the charge. 3. Claim your charges back from them - Credit cards are exempt from the stay in legal action affecting bank claims. Good luck.
  25. Unfortuantely the whole argument is a little simplistic for me; 1. there is actually a cost to the banks because they need to hold c.8% capital to cover any loans they give out. In the current climate this capital is very expensive. 2. you dont have to have your current and loan accounts with the same bank - ie. you take a loan with barclays which is paid into your halifax current account which is spent buying a car and the garage selling the car banks with lloyds so they get the cash. Barclays need to balance their books so when they give the loan their assets go up and it is funded by an increased liability which in recent years has meant that they basically borrowed from the securitisation market (pension funds etc). This is why the economy is in such a state 1) the banks have taken on too much securitiation debt and 2) joe public has too much debt. IMHO the answer to our economic problems is that we need to go through a painful process of joe public spending less and using surplus cash to save and pay off debt. This will allow the banks to reduce their balance sheets and eventually people will have more cash in their pockets and start spening again.
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