It seems to be his view that it’s everybody’s fault, but his. As a lender that specialises in picking up the pieces after prime lenders, credit and store card providers, etc, have over-indulged their customers, I find his remarks unjust and ill-informed.
IVAs are only entered into by people whose debts are out of control and the high-street banks cannot shy away from their part in this. Consumers are bombarded with offers of ever-extended and unsecured credit, which is often given with little consideration to how the customer will repay or manage his debts. When the banks are reaping interest rates of well over 10 per cent and sometimes as much as 20 per cent above Base Rates on much of this debt, their motivation is clear. At these rates, it is no wonder consumers who want to take back control of their finances are turning to a range of options. If Geoghegan would like to reduce HSBC’s exposure to bad debts, I suggest he reconsider his lending criteria before criticising those who are addressing the problems these criteria create.
Ian Nelson
CEO
Unity Homeloans
