A number of English financial institutions have chosen an unusual method to prevent a home loan from collapsing.
About two thousand customers call every month, and the lending financial institution’s staff politely but firmly warns them that since they are heavily behind on their home loan repayments, they have checked their bank account and found that they are not distributing their money well. I’d be happy to, for example, not spend on a fitness lease and an expensive cell phone, but on an honest loan repayment.
The Protection of Individual Rights
The method is wholly unusual and is rejected by the Ombudsman for the Protection of Individual Rights. But he protests, because on the tiny pages of a home loan agreement – which many don’t read carefully – it reads that the lender has the right to examine the financial condition of the risky debtor without his knowledge and consent.
Secret bank account checks and telephone alerts
Were launched by two British financial institutions that were bailed out by the state during the banking crisis, and as they manage taxpayers’ money, they have an increased responsibility for debt recovery. A total of 616,000 mortgages are handled.
In the first half of 2011, nearly 20,000 families across England took ownership of their homes due to lending banks, due to non-repayment. The other 250,000 pay only stagnantly.
A significant number of English people prefer to buy with a credit card
Undoubtedly, a significant number of English people prefer to buy with a credit card and get into debt. They also like to live well in bad economic conditions.
On the other hand, a lot of English people find it difficult to cover their basic expenses and end up with credit card payment, neglecting home loan repayments. It would be difficult for them to be warned to save on their children’s dinner in order to repay.