People not getting into debt are at a financial disadvantage?

[andygardener]

But I presume, with 'interest free credit' - The loan company makes no profit? That is, of course, if you pay it back on time. Do they rely on people getting into debt they can't repay?

 

The normal method is backdated interest if any of the terms are not adhered to. So if someone misses any payment, even by a day, they are then locked into paying interest of around 30%+ from the beginning of the agreement, on a three year deal this would make the lender 100% of the purchase price in interest. If 30% of people miss a payment then it makes a tidy profit for the loan company even with the opportunity cost of money they are losing from those who make all the payments and get geuine interest free credit from them.

[foxy lady]

This is even worse and true.

Lady's husband has just died and she wants to open a bank/BS account in her name.

3 items of proof of identity required because of the money laundering regs.

She hasn't a utility bill, all bills were in her husbands name.

She has never driven, therefore no licence.

No passport ....never holidayed abroad.

All savings accounts in her husbands name.

No State pension..............too young.

Never had a credit card.

What can she do?

I'd like to know the answers to this.

 

Not strictly true to my circumstances, hubby still alive, thank God and not all bills in his name, but I still wouldn't have 3 proofs of identity.

Very easy. When one person dies a joint account become automatically transfered to the surviving holder. Job done.

[XXTickerXX]

He's playing a dangerous game if he thinks debts to that level will be statute barred. It's got nothing to do with when he last paid them money - it's when he last acknowledged the debt.

 

He seemed to know his rights.He reckoned it was 6 years from the date of the last payment and he has not responded to them since.I`m seeing him later so i will see how long he says is left before statute barred kicks in.

 

I asked him last year why they never made him bankrupt and he said its because he has no assets to chase and suspects most don`t have valid agreements.

[Leah-Lacie]

He seemed to know his rights.He reckoned it was 6 years from the date of the last payment and he has not responded to them since.I`m seeing him later so i will see how long he says is left before statute barred kicks in.

 

I asked him last year why they never made him bankrupt and he said its because he has no assets to chase and suspects most don`t have valid agreements.

 

Its 6 years since you last had contact with them if I recall correctly. I don't know if this includes them sending letters and stuff, or whether its actually when YOU contact them or answer the phone to them etc.

[Chris_Sleeps]

He seemed to know his rights.He reckoned it was 6 years from the date of the last payment

It's complex, but the legal term is 'acknowledgement'. If he says on the phone* "I'm not paying it," for example, then he acknowledges that the debt is his and the 6 years begins again. Irrelevant of when he last made a payment.

 

It's up to him though, if he wishes to take this route.

 

-----------------------

* I should had the caveat that it is also recorded by them.

[XXTickerXX]

Its 6 years since you last had contact with them if I recall correctly. I don't know if this includes them sending letters and stuff, or whether its actually when YOU contact them or answer the phone to them etc.

 

I had to google it

 

Unsecured credit debts

 

This would include credit cards, store cards, bank and building society personal loans, catalogues, finance company loans etc. You may have had a debt with an ordinary unsecured creditor that you have not heard about for a very long time. You may have moved address or thought the debt had been written off.

Out of the blue a letter arrives from the original creditor or a debt collection agency asking you to make a payment.

You can argue that the creditor is out of time or “statute barred” from taking you to court for this debt:

if

 

1/ The creditor has not already obtained a judgment against you

 

and

 

2/ You, or any one else owing the money (on a debt in joint names) have not made a payment on the debt during the last six years

 

and

 

 

3/ You have not written to the creditor admitting you owe the debt during the last six years.

[Grenoside123]

I know someone who has loans and credit card debt of around £80k,all unsecured.He stopped paying around 5-6 years ago just like that.He said only 1 of the creditors obtained a CCJ against him and in a couple of months the defaults will be up as in unenforceable within the limitation acts.He reckons the CCJ will drop off his credit report and the court very rarely gives the banks leave (apparently they have to reapply) to chase it after that.He is quite unrepentant and does not worry about it at all.

I often think i`m the stupid one when he has cars and holidays all over as well.The banks were stupid to give people that much credit but only have themselves to blame.

 

Me too. I know a couple that ran up over 16k debt on credit card on nothing, new clothes, fancy hair cuts, holidays, nail extensions etc. They got about 3/4 of it written off. Madness. what's the message there eh? If i knew i could sleep at night I'd be tempted.