I listened to yesterday's show on the radio player:- Liveline (rte.ie)
I should point out that on another thread on this forum I compared "Life Loans" to giving sweets to a child and for the record I am against such loans. The following is my opinion of what happened on the show:-
1. Siobhán opened the show stating Compound Interest 6.1% applied to her parents Life Loan of €100K which by now has accumulated to €261405K. She claimed BoI were "reputable" and parents wondered what could go wrong. (8 mins).
2. The listener was advised that the couple no longer own 100% of their own home and the Bank can be owed more than the value of the house after 15 years of the loan.
3. The listener was advised also that there are five warnings given to the people applying for the loan. Joe Duffy wonders if so, why are such loans on the market.
4. Enter Bill who says loan rate is "penal" and fails to get "forgiveness" in dealing with Bank. Joe says he invited BoI to supply a spokesperson and they do not.
5. Enter Mr Brendan Burgess. I was looking for some cogent input and suddenly he says (not an exact quote) "interest rates are too high because of radio shows like Joe Duffy's." Mr Burgess also called for the show to be (exact quote) "more balanced." How could it be "more balanced" if BoI failed to supply a spokesperson? To me, it appeared Mr Burgess was an apologist for a financial institution which failed to show up.
6. Enter Tom Murray (Fair Deal Advisor) who claims there are no Fair Deal warnings in the bank's Five-Warnings and detrimentally affects later application for the Fair Deal Scheme.
7. Enter Mr Burgess again (on 25th minute) who advises that applicants for Life Loans should seek independent financial advice. He also advises that there are outrageous and disgraceful statements on the show. He defends the Life Loans as being a very good product. (32 mins).[Added later:- Mr Burgess did say the interest rate charged for such loans was much higher than the UK equivalent].
8. Enter Mr David Hall who says Life Loans are a "predatory product" when one considers the age, vulnerabilty etc of the applicants. (33 mins).
9. Mr Brendan Burgess appears and advises the five warnings, full programme of loan can be misinterpreted by applicants, He might advise that trading down is more beneficial for the Life Loan seekers.
10. Mr Hall interrupts and calls the loans to be "despicable" products.
11. Enter James. His mother received a loan of €75K and amount outstanding rose to €190K. The lady was hit by dementia during the course of the loan. James suggested that the loan was "elder abuse."
12. Enter John Brannigan, retired banker who advised applicants usual spurious relationship with their solicitor regarding financial matters. Joe Duffy interrupts with the applicant seeing "a trip to Australia, not a mortgage."
13. James Smith claims that a loan of €12K in 20002 rose to €43K in 2012. He entered negotiations with bank who refused to negotiate and wanted all the money outstanding "now." Mr Burgess calculated that the outstanding amount should be €23K and suggested the original loan could be for a greater amount or perhaps an additional loan was later sought. The Financial Ombudsman was involved, but I'm unsure of the findings.
14. Enter Ciara (or Kiera, or whatever!). €45K loan increased to €137K due and was paid on sale of the house.
15. The show ends on 78 mins (ad breaks not included), mercifully, me again wondering how such loans are still available.
I have always said these so called Life Loans were bad products and I think I have average intelligence. But, the vulnerability, future health etc of applicants appears (to me) to be ignored for financial institution profit. Such loans were withdrawn in 2002 and launched again in 2020. That in itself tells a story. Bank of Ireland failed to supply a spokesperson which in itself suggests that "independents" should give such radio shows a wide berth. Why defend the Bank of Ireland when it won't defend itself?
But, to be fair to Brendan Burgess, I learned much from him during the Liveline show. He didn't have to appear but he willingly did and for this I give him credit. Certainly, with my knowledge of such shows I wouldn't have stuck my head above the parapet. I hope I have not offended anybody.
I should point out that on another thread on this forum I compared "Life Loans" to giving sweets to a child and for the record I am against such loans. The following is my opinion of what happened on the show:-
1. Siobhán opened the show stating Compound Interest 6.1% applied to her parents Life Loan of €100K which by now has accumulated to €261405K. She claimed BoI were "reputable" and parents wondered what could go wrong. (8 mins).
2. The listener was advised that the couple no longer own 100% of their own home and the Bank can be owed more than the value of the house after 15 years of the loan.
3. The listener was advised also that there are five warnings given to the people applying for the loan. Joe Duffy wonders if so, why are such loans on the market.
4. Enter Bill who says loan rate is "penal" and fails to get "forgiveness" in dealing with Bank. Joe says he invited BoI to supply a spokesperson and they do not.
5. Enter Mr Brendan Burgess. I was looking for some cogent input and suddenly he says (not an exact quote) "interest rates are too high because of radio shows like Joe Duffy's." Mr Burgess also called for the show to be (exact quote) "more balanced." How could it be "more balanced" if BoI failed to supply a spokesperson? To me, it appeared Mr Burgess was an apologist for a financial institution which failed to show up.
6. Enter Tom Murray (Fair Deal Advisor) who claims there are no Fair Deal warnings in the bank's Five-Warnings and detrimentally affects later application for the Fair Deal Scheme.
7. Enter Mr Burgess again (on 25th minute) who advises that applicants for Life Loans should seek independent financial advice. He also advises that there are outrageous and disgraceful statements on the show. He defends the Life Loans as being a very good product. (32 mins).[Added later:- Mr Burgess did say the interest rate charged for such loans was much higher than the UK equivalent].
8. Enter Mr David Hall who says Life Loans are a "predatory product" when one considers the age, vulnerabilty etc of the applicants. (33 mins).
9. Mr Brendan Burgess appears and advises the five warnings, full programme of loan can be misinterpreted by applicants, He might advise that trading down is more beneficial for the Life Loan seekers.
10. Mr Hall interrupts and calls the loans to be "despicable" products.
11. Enter James. His mother received a loan of €75K and amount outstanding rose to €190K. The lady was hit by dementia during the course of the loan. James suggested that the loan was "elder abuse."
12. Enter John Brannigan, retired banker who advised applicants usual spurious relationship with their solicitor regarding financial matters. Joe Duffy interrupts with the applicant seeing "a trip to Australia, not a mortgage."
13. James Smith claims that a loan of €12K in 20002 rose to €43K in 2012. He entered negotiations with bank who refused to negotiate and wanted all the money outstanding "now." Mr Burgess calculated that the outstanding amount should be €23K and suggested the original loan could be for a greater amount or perhaps an additional loan was later sought. The Financial Ombudsman was involved, but I'm unsure of the findings.
14. Enter Ciara (or Kiera, or whatever!). €45K loan increased to €137K due and was paid on sale of the house.
15. The show ends on 78 mins (ad breaks not included), mercifully, me again wondering how such loans are still available.
I have always said these so called Life Loans were bad products and I think I have average intelligence. But, the vulnerability, future health etc of applicants appears (to me) to be ignored for financial institution profit. Such loans were withdrawn in 2002 and launched again in 2020. That in itself tells a story. Bank of Ireland failed to supply a spokesperson which in itself suggests that "independents" should give such radio shows a wide berth. Why defend the Bank of Ireland when it won't defend itself?
But, to be fair to Brendan Burgess, I learned much from him during the Liveline show. He didn't have to appear but he willingly did and for this I give him credit. Certainly, with my knowledge of such shows I wouldn't have stuck my head above the parapet. I hope I have not offended anybody.
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