My name is Jasmin Puggs (great name I hear you say), and I love money. Well we all do I guess, but I love writing about money and all things related to money. My background is in financial services and this is where I spend my day and this is what I know most about, so I tend to write about this industry.
Like a lot of people I am concerned about the battering the industry takes from, well it seems like everyone. If it isn’t an MP having a go about payday loans companies, or the press working out how long an instalment loan would take to repay, it is consumers being to led believe that they have no responsibility when they borrow money and therefore do not have to repay their debts. I find this very disheartening because as we all know, the world does not owe us a living and most certainly not paying back debts or loans is not the right thing to do. I worry that UK consumers are being told by the MP’s and Government that the short term loans companies are the bad guys. This creates an impression on the consumers that they can treat the lenders badly and no one will care. Of course, in reality, not paying back a loan will, at the very least, leave a negative mark on your credit file and could potentially end up with a CCJ (County Court Judgement) and a greatly increased debt.
We all know that people who work in “the city”, and are successful, earn a lot of money. It does seem wrong that businesses like RBS pay out massive bonuses to its staff. How a company can pay bonuses of £588m when it loses £8.24bn and are state owned is beyond me. But if I was one of those “bankers” would I object? No I would not! But that does not make it right, does it.
Back in 2008 all the talk was about toxic mortgages and people being in negative equity with their houses. Now I agree that negative equity is really bad news for the borrower, but the problem is not the totally the fault of the lender. Some responsibility must go to the borrower. People borrowed more than their houses were worth, or cost, they were relying on the value of the house increasing and while the lenders lent them the money, the borrowers should have sat back and thought about the potential for things going wrong.
Yes, it does seem that in the 21st Century the responsibility for borrowers and lenders lies completely with the lenders. In the mid 19th Century things were very different. There were things called Debtors Prisons where a person would be sent if they could not pay their debts. Now, I know in theory you could be sent to prison nowadays for non payment of debts, I can’t imagine someone being sent to prison for not paying back an instalment loan or payday loan can you? But the crime is really as bad as stealing from a shop or your place of work. To not pay back a loan is really bad and should be viewed as unacceptable by everyone.