In message <4%9Fj.27084$XI.333@text.news.virginmedia.com>, Ronald Raygun
writes
>Graham Murray wrote:
>
>> Papadillos writes:
>>
>>> The banks' increasing concern about the risks of the implosion of
>>> Britain's £1.4 trillion debt mountain has led to a huge surge in the
>>> number of court orders moving unsecured debt on to a basis that secures
>>> it against a borrower's home.
>>
>> Maybe someone needs to remind the banks of the old adage "you cannot
>> have your cake and eat it". Either the banks should charge higher
>> interest rates, as they do on credit cards, for unsecured loans and
>> accept the accompanying risks. Or they should make the loans secured and
>> charge lower interest rates commensurate with the lower risk. They
>> should not be allowed to have it both ways.
>
>They will presumably charge a lower rate once the loan becomes secured.
>The higher rate is still justified before this step is taken.
I'm not sure why you presume that. They have no such obligation.
--
Mike_B |