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ICTChris

Payday loan companies

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6 hours ago, JTS98 said:

Huge part of the problem is how staff/teams are incentivised to lend money. Commission, bonuses, prizes etc.

I used to work for a very large Hong Kong-based bank and remember well the encouragement to get folk signed up.

The people selling the stuff at the customer face give not a flying f**k about the bank's risk or the customer's ability to pay. They care about commission and bonuses. 

Salesperson has good stats and gets financial reward. His or her team leader looks good. Team leader's manager looks good. It's in nobody's interest to sell sensibly.

As long as that's the case, bad loans will be an everyday occurrence.

By any chance would this be the Hong Kong and Shanghai Banking Corporation..... aka HSBC..?

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I know someone who worked for a big bank in the mid 2000s and they were heavily pressured to get PPI sign ups. Given the result of this ended up costing all the banks pushing it literally billions of pounds you’d hope that they’d factor this in to how they sell and tailor products now.

Somehow I doubt it though.

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1 hour ago, ICTChris said:

I know someone who worked for a big bank in the mid 2000s and they were heavily pressured to get PPI sign ups. Given the result of this ended up costing all the banks pushing it literally billions of pounds you’d hope that they’d factor this in to how they sell and tailor products now.

Somehow I doubt it though.

Banks just set up the PPI reclaim companies and charged folk for something they could do for free. Genius.

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6 hours ago, beefybake said:

By any chance would this be the Hong Kong and Shanghai Banking Corporation..... aka HSBC..?

Well. It would be unbecoming to single out one...

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11 hours ago, oaksoft said:

It depends on your level of spin.

You can either say that people wolingly and knowingly took on loans they knew they couldn't pay back or you can say the banks forced money on people who had absolutely zero ability to think for themselves.

I prefer the former.

I think you're being kind to the financial institutions.

At the institution I worked at before, those selling loans, mortgages were often encouraged to find ways to make an unaffordable deal affordable for the customer. This was seen as good customer service.

It's not. If someone can't afford a loan, reorganising it to make things look different and telling them they can afford it now is not responsible. Many people will assume it'll be fine if the bank says it'll be fine.

 

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6 hours ago, JTS98 said:

I think you're being kind to the financial institutions.

At the institution I worked at before, those selling loans, mortgages were often encouraged to find ways to make an unaffordable deal affordable for the customer. This was seen as good customer service.

It's not. If someone can't afford a loan, reorganising it to make things look different and telling them they can afford it now is not responsible. Many people will assume it'll be fine if the bank says it'll be fine.

 

I'm not being kind to either side.

Both irresponsible borrowers and irresponsible lenders are to blame for what happened.

Take one of them out of the equation and you wouldn't have seen a credit crunch.

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16 hours ago, Margaret Thatcher said:

I was about to reply, "you sound like the Oaksoft of the financial world".

Then I noticed it was Oaksoft.

You poor, lonely bore.

Blah blah blah.

Grow up FFS.

Or use the ignore function.

Your choice.

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21 hours ago, oaksoft said:

It depends on your level of spin.

You can either say that people wolingly and knowingly took on loans they knew they couldn't pay back or you can say the banks forced money on people who had absolutely zero ability to think for themselves.

I prefer the former.

 

3 hours ago, oaksoft said:

I'm not being kind to either side.

Both irresponsible borrowers and irresponsible lenders are to blame for what happened.

Make your mind up.

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3 hours ago, oaksoft said:

I'm not being kind to either side.

Both irresponsible borrowers and irresponsible lenders are to blame for what happened.

Take one of them out of the equation and you wouldn't have seen a credit crunch.

That's not strictly true though is it. A huge factor in the rapid collapse of the markets was down to products being rated AAA by the government and financial institutions when anyone with half a brain could see they were filled with mortgages that were going to fail and were no where near the bench mark for AAA. The banks and financial institutions are far more to blame than "irresponsible borrowers"

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16 hours ago, ICTChris said:

I know someone who worked for a big bank in the mid 2000s and they were heavily pressured to get PPI sign ups. Given the result of this ended up costing all the banks pushing it literally billions of pounds you’d hope that they’d factor this in to how they sell and tailor products now.

Somehow I doubt it though.

I think I've mentioned it on here before but I worked for a while selling personal loans and PPI was a significant part of the sales target. I had several discussions with my team and department manager on the subject and told them it was being mis-sold but no one cared because the entire industry was at it and people were making lots of money from selling it.

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12 minutes ago, Ross. said:

I think I've mentioned it on here before but I worked for a while selling personal loans and PPI was a significant part of the sales target. I had several discussions with my team and department manager on the subject and told them it was being mis-sold but no one cared because the entire industry was at it and people were making lots of money from selling it.

Annoying as well because it's a good product. A wee bit of cover in case ye lose yer job or fall ill so yer hoose isnae taken aff ye? Decent deal for a lot of folk.

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2 minutes ago, AsimButtHitsASix said:

Annoying as well because it's a good product. A wee bit of cover in case ye lose yer job or fall ill so yer hoose isnae taken aff ye? Decent deal for a lot of folk.

It was a good product in certain conditions, but for many it was as good as a chocolate teapot. Self employed folk were pretty much shafted, and if you changed jobs during the term of the loan it could also be a bit rocky depending on the insurer. The amount of exceptions involved in a lot of these products they should have been heavily regulated and sold only by accredited sellers.

That said, it wasn't mis-sold as badly as the structured notes they had the branches punting when I changed jobs in 2007. The staff were being trained to sell them with the line "The markets never go down". Thank f**k I had moved on by the time 2008 kicked in. That cost them another significant fine!

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1 minute ago, Ross. said:

It was a good product in certain conditions, but for many it was as good as a chocolate teapot. Self employed folk were pretty much shafted, and if you changed jobs during the term of the loan it could also be a bit rocky depending on the insurer. The amount of exceptions involved in a lot of these products they should have been heavily regulated and sold only by accredited sellers.

That said, it wasn't mis-sold as badly as the structured notes they had the branches punting when I changed jobs in 2007. The staff were being trained to sell them with the line "The markets never go down". Thank f**k I had moved on by the time 2008 kicked in. That cost them another significant fine!

That's what I found. I was never able to claim on it when I had no work. And some months my repayments barely covered the cost of the PPI, the actual "loan" owed never came down.

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What I'm reading is that @Ross. was singlehandedly responsible for the financial crash and the PPI scandal. Set these scams up then fucked off before the shit hit the fan.

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1 minute ago, Mark Connolly said:

What I'm reading is that @Ross. was singlehandedly responsible for the financial crash and the PPI scandal. Set these scams up then fucked off before the shit hit the fan.

And I now work for a major broker in one of the biggest tax dodging areas of the Western World. All's well that ends well...

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1 minute ago, Ross. said:

And I now work for a major broker in one of the biggest tax dodging areas of the Western World. All's well that ends well...

I salute your indefatigability

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4 minutes ago, Jacksgranda said:

That's what I found. I was never able to claim on it when I had no work. And some months my repayments barely covered the cost of the PPI, the actual "loan" owed never came down.

Somewhat ironic that I knew we were mis-selling the fucking things because I'd actually been mis-sold a PPI policy a couple of years earlier and was unable to claim when I was paid off and looking for a new job.

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15 minutes ago, Ross. said:

And I now work for a major broker in one of the biggest tax dodging areas of the Western World. All's well that ends well...

You work at Ibrox?

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PPI on credit cards always seemed like a massive rip-off. I could be wrong, but it seemed like it only paid off the interest on a monthly basis, so you'd need to have huge debts and be absolutely potless for a long period of time in order for it to be worthwhile. I think one provider wanted £30 a month from me for that kind of "cover". Mental.

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Wow, I would like also to take a huge loan and then the copany which gave it to me would close. That would be brilliant. By the way I didn’t hear such stuff, so most probably if the company is closed you have to pay debt anyway. They will just not work anymore, but continue receiving money from people. I have used loan company just ones in my live and remained very satisfied, because conditions were good. I used this company. LINK DELETED. 

Edited by Cardinal Richelieu

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