Managing the deficit is a phrase that has replaced the panic following the disastrous antics of the world’s financial institutions.
The effects of which are still felt today.
People who one would least expect to find in financial difficulties have found themselves at the mercy of ‘contracted-out’ debt collectors, as their financial status and credit ratings plummet.
The banks, credit cards and all other lenders have employed debt collecting companies to claw back as much as they possibly can.
I interviewed someone recently who, because of the bank’s ineptitude, was forced to sell his home, though managed to pay off an outstanding mortgage of £60,000, but has yet to receive as much as a receipt or note of thanks from the bank.
Another bank told him that if he didn’t pay back, or agree to a payment plan at their discretion a credit card loan of £2,200, they would take him to the county court to have the loan attached to his new home via a county court judgement, therefore ensuring payment to the bank above all others on the eventual sale.
The irony is, he told me, that this time two years ago his total debt amounted to something like £90,000 (including outstanding mortgage) and his credit rating was perfect.
Today his total debt is no more than £7,000, yet because of the banks’ faceless inflexibility, ignorance and ineptitude, his credit rating with the three main agencies is virtually zero.
There is now no difference between the pay-day lenders and all the others who refuse to treat customers with dignity.