consumer credit freeze? really? (Full Version)

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LadyEllen -> consumer credit freeze? really? (10/21/2008 3:19:02 PM)

I'm surprised I must say. Delighted in a way.

Today I opened my post, to find that I am being offered unsecured credit - more than that I'm already approved and just need to say whether I want it or not.

And not from daft companies either - you know, the "just 150% APR" types that prey on people with poor credit histories - from high street lenders offering pretty good deals.

And not inconsiderable amounts either - unless you consider £20k inconsiderable.

Now, I'll confess to being the sort that lets direct debits bounce occasionally and frequently exceeds her overdraft too - stuff that I should have thought would have me down as "risky" at best. But it seems I must now be near the top of the credit scoring as the banks get desperate for any customer who is earning.

It is of course my duty as a responsible citizen to take all available credit and blow it on consumer goods from China - this keeps the economy turning, keeps people in jobs and keeps inflation down. On the other hand I could just use it to tell the credit card companies to get stuffed, or refuse it and wait for even better offers.

But I thought it was interesting that in this age of a freeze on credit, I of all people should be getting such offers.

Anyone else?

E



kittinSol -> RE: consumer credit freeze? really? (10/21/2008 4:03:24 PM)

I wish [8D] .



BlackPhx -> RE: consumer credit freeze? really? (10/21/2008 4:26:51 PM)

Constantly 5 in the past week
[:D][:D][:D][:D][:D]

poenkitten



Aneirin -> RE: consumer credit freeze? really? (10/21/2008 4:27:25 PM)

Yep, unemployed with two default notices served, and I am being bombarded with letters for loans. Not that I have any interest in what they have to offer, but it amazes me, I of all people am being offered easy credit. Maybe it is, they might offer, but on application refuse, but why generate the mail shot in the first place.

To note, my financial difficulties were caused by a long period of ill health, not myself riding slip shod over my responsibilities, I wanted to sort things out, but could'nt.

I quite enjoy living frugally, and enjoy the fact that I can live quite well on a low income. It is a challenge to me to see how well I can live on a very low income, circa 10k a year, it can be done.

I have been on vast sums in the past, but what I found was the more funds you had, the more things you needed, like having goals just to spend money, achievements made in the latest consumer crap. A down turn in fortunes makes one well aware of the true value of all the consumer crap, it a mere fraction of what was paid, if at all saleable. The decision now, I would sooner be poor and happy than better off and constantly buying crap to create a moment of happiness and achievement., a false happiness, I believe we have all been conned into believing.



Lordandmaster -> RE: consumer credit freeze? really? (10/21/2008 4:34:35 PM)

It depends on your credit and debt-to-earnings ratio.  If you're a good bet from their point of view, you'll probably be getting even MORE offers (now that everyone else is turning into a crappy bet).



MmeGigs -> RE: consumer credit freeze? really? (10/21/2008 4:46:25 PM)

Yep, I've been getting them, too, and I know that my credit score is not a number that should be attractive to lenders.  They're offering me thousands of dollars of credit at less than their top gouge rates.  I'm guessing that I'm getting all of these offers because the issuers are desperate and are hoping that I am, too. 

quote:

It is of course my duty as a responsible citizen to take all available credit and blow it on consumer goods from China - this keeps the economy turning, keeps people in jobs and keeps inflation down.


I don't think you're that far off the mark.  People are tightening their belts, paying off their debt, buying less stuff.  Many are experiencing wage and benefit cuts, they're losing jobs or are worried about losing jobs.  The gas prices hit a lot of us really hard and we cut back.  Now that the gas prices are going down many of us are continuing our frugal ways.  But the economy in the US relies on consumer spending.  We're 70% of GDP.  I don't know how it is in the UK, but I'm guessing consumers make up a large part of GDP there, too.  A national spending spree would definitely help things out on a macro level, but with so many fiscally cautious consumers that's not likely to happen. 

What kind of boggles me is that the economics and financial experts can't seem to see the connection between labor and consumers - that these are the same people.  If you keep pushing down wages and benefits in order to cut costs and maximize profits, you end up with consumers with less money to spend.  When well-paying skilled and semi-skilled jobs are offshored and replaced with low-paying retail jobs or outsourced to "independent consultants" (former employees who are doing the same job they used to do but with no benefits or job security), you end up with a bunch of consumers with less money to spend.  

There were folks who suspected that there was trouble brewing years ago when the only retail sector that was really performing was luxury goods, and who started getting worried when mid-range retailers were losing substantial market share to discount retailers, and who started believing there was something really wrong when the discount retailers started underperforming, but their concerns didn't get much play.  I don't think I ever heard any of the economic talking heads mention a connection between wages and spending.  That struck me as bizarre years ago, and that they still don't seem to make the connection makes me wonder if they're actually that dumb or if there's some reason they're choosing to overlook this.  I tend to believe that they're actually that dumb. 



Musicmystery -> RE: consumer credit freeze? really? (10/21/2008 5:14:49 PM)


quote:

ORIGINAL: Aneirin

Yep, unemployed with two default notices served, and I am being bombarded with letters for loans. Not that I have any interest in what they have to offer, but it amazes me, I of all people am being offered easy credit. Maybe it is, they might offer, but on application refuse, but why generate the mail shot in the first place.

To note, my financial difficulties were caused by a long period of ill health, not myself riding slip shod over my responsibilities, I wanted to sort things out, but could'nt.

I quite enjoy living frugally, and enjoy the fact that I can live quite well on a low income. It is a challenge to me to see how well I can live on a very low income, circa 10k a year, it can be done.

I have been on vast sums in the past, but what I found was the more funds you had, the more things you needed, like having goals just to spend money, achievements made in the latest consumer crap. A down turn in fortunes makes one well aware of the true value of all the consumer crap, it a mere fraction of what was paid, if at all saleable. The decision now, I would sooner be poor and happy than better off and constantly buying crap to create a moment of happiness and achievement., a false happiness, I believe we have all been conned into believing.



Getting an offer is just cold calling.

Receiving the credit needs your signature to allow them to look at your credit and make the decision.

Yah, that means the offers aren't really honest. Anyone surprised?



LookieNoNookie -> RE: consumer credit freeze? really? (10/21/2008 5:17:15 PM)

quote:

ORIGINAL: LadyEllen

I'm surprised I must say. Delighted in a way.

Today I opened my post, to find that I am being offered unsecured credit - more than that I'm already approved and just need to say whether I want it or not.

And not from daft companies either - you know, the "just 150% APR" types that prey on people with poor credit histories - from high street lenders offering pretty good deals.

And not inconsiderable amounts either - unless you consider £20k inconsiderable.

Now, I'll confess to being the sort that lets direct debits bounce occasionally and frequently exceeds her overdraft too - stuff that I should have thought would have me down as "risky" at best. But it seems I must now be near the top of the credit scoring as the banks get desperate for any customer who is earning.

It is of course my duty as a responsible citizen to take all available credit and blow it on consumer goods from China - this keeps the economy turning, keeps people in jobs and keeps inflation down. On the other hand I could just use it to tell the credit card companies to get stuffed, or refuse it and wait for even better offers.

But I thought it was interesting that in this age of a freeze on credit, I of all people should be getting such offers.

Anyone else?

E


I've heard this same story lately in the last 2 weeks as well from some friends of mine (I still toss everything that isn't a bill)....

It is rather curious isn't it?



pahunkboy -> RE: consumer credit freeze? really? (10/21/2008 5:26:21 PM)

well- come ons. But the fine print is always terms I wont agree to.



Owner59 -> RE: consumer credit freeze? really? (10/21/2008 6:07:22 PM)

 

The Feds are planing to buy up a bunch of commercial paper,in hopes of getting money in to prime the pump again.

It may take a while though before things un-stick(if ever).

Meanwhile,the commercial paper market,the life blood of small business will be un-available and it`s feared that many many businesses will tumble and fold before this is over.

This is a result of neo-conservative stewardship and willful neglect.

Count on cons spending all their energy on deflecting any blame for this.

Count on Obama actually doing something about this.

http://www.marketwatch.com/news/story/fed-buy-commercial-paper-ease/story.aspx?guid=%7B596F400F-0538-4BFF-9F59-23FF766D98DC%7D&dist=msr_8


Edited to correct.



NeedToUseYou -> RE: consumer credit freeze? really? (10/21/2008 11:19:55 PM)

yeah, like I stated on another thread, we have been paying off one card pretty fast, and then they cut the limit, which we were no where near to. But they then for some reason completely slashed the minimum payment, in half, which couldn't be because of paying it down, we didn't pay it half down in one month. But I forgot to add, American express, the same company also in that same day sent a Pre-Approved offer for an additional card, which makes no sense. I just glanced at the thing and trashed it. I really don't understand the credit card people. They also like to give credit cards to people fresh out of bankruptcy, because they can't file for 7 years after that. LOL.

I hate credit card companies I watched a documentary about the guru of the credit card industry, can't remember his name, but he out and out admitted they are just traps waiting for someone to screw up. They compared credit cards of today against those in the 70's. In the 70's the interest rates were not as low, but neither were the penalties so outrageous. Now all the profit is back  loaded, and dependent on you screwing up once. Problem is in todays economy people probably just will not pay it period, then all those backend penalties don't help fatten the bottom line anymore.

I think we are going to see credit cards revert to the old method shortly, simply because once they see that even good people will not be able to pay those penalties in a screwed up economy, the system loses its appeal.



seeksfemslave -> RE: consumer credit freeze? really? (10/22/2008 4:11:53 AM)

quote:

MmeGigs
I don't think I ever heard any of the economic talking heads mention a connection between wages and spending. 

Come off it MmeG.
Everyone from Marx to Keynes has made the connection.
Contemporary right wing conservatives probably not.
They go for "trickle down" economics via tax cuts for the wealthy .... dont they ?

The offers I get have shifted to different types of insurance.



PlayfulOne -> RE: consumer credit freeze? really? (10/22/2008 4:38:47 AM)

Well knowing the loan officer at the Bank of America branch here, her take is she has not written a loan period in a month.  Those offers like the one you received always come with the "fine print".  There have been many cases lately where people were preapproved for mortgages or other loans and then had them pulled.  People have also had their limits reduced on lines of credit and credit cards.  Many of these were from people who were in good standing and had no problems. 

K



LadyEllen -> RE: consumer credit freeze? really? (10/22/2008 5:06:45 AM)

well, I applied, and got it - from the bank that holds my main current account too and that I have one of several cards with, so they know what an irresponsible little customer I am and they know from all the direct debits for the other cards with whom I have them and roughly how much I owe from the minimum payments due. Its also the same bank that I threatened with court action last year over bank charges for my irresponsible behaviour, and which paid up out of court to the tune of a couple of thousand.

its a shot in the foot for them in one way - I'm going to use what I borrowed to settle their damned card (and others) for much cheaper interest - although of course in a way its better for them as effectively they have minimised their potential losses on paper should I not have been able to pay the card.

Maybe the idea is that they're able by this to show that they are still making sales, are reducing their potential liabilities and so on?

E



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