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Subject: Re: Times: Homes at risk as banks seek more security for credit card Posted on: Mon, 24 Mar 2008 13:39:56 +0000

M Holmes wrote:
> In uk.finance Nick wrote:
>
>>> Where's the problem? People are owe money to the banks and the banks are
>>> doing what they think necessary to get the money back.
>
>> The right of lenders to get their money back has to be limited.
>
> The only reasonable limit I can imagine is that we limit them to the
> amount of money actually owed. Did you have some other limit in mind?
>

Yes of course, The limit on how much the borrower has to give up if he
is unable/unwilling to pay. When sophisticated institutions deal with
each other they are very careful to specify limits. When companies are
formed they do so on a basis of limited liability.

It seems to me that an unsophisticated borrower is particularly in need
of protection and clarity from a sophisticate lender.

The problems of usury have existed for thousands of years it is not as
if I am presenting a new concept to you.

>> Or do you think that the lender has an absolute right to their pound of
>> flesh? Why not let them sell the borrowers internal organs if they
>> think it necessary to get the money back?
>
> An interesting possibility. I suspect many defaulters would try much
> harder if this option were open to the banks.
>

Perhaps it is the lenders who should be more careful. That would
certainly be my view given the current financial situation.

> FoFP
>