What are the penalties for stopping payment of loans?

R

redbhoy

Registered User
Messages
394
If someone was to realise that the system of credit is one big farce and decided to switch current account to a different bank and have wages paid in there whilst simultaneously ceasing to pay all credit agreements with previous bank?
Whats the worst that could happen?
 
You credit rating goes down the drain , the bank sue you , you loose your house/car/tv/dog ......

You never get credit again becuase of the judgements.
 
Funnily enough this was what Bill Cullen was suggesting people should do with their mortgages when speaking on Frontline on Monday! He really does get on my wick.....
 
I was reading somewhere that the banks dont actually have anything to lend until you sign the agreement with them. If they were to bring you to court wouldnt they have to show that they were at a loss to sue you?
How could they do this? What did they lose?
 
redbhoy said:
I was reading somewhere that the banks dont actually have anything to lend until you sign the agreement with them. If they were to bring you to court wouldnt they have to show that they were at a loss to sue you?
How could they do this? What did they lose?
Click to expand...

It's a complete bull theory.

If it was true then every court case would fail on that point and international finance would grind to a halt tomorrow.
 
jhegarty said:
You credit rating goes down the drain , the bank sue you , you loose your house/car/tv/dog ......

You never get credit again becuase of the judgements.
Click to expand...


What if one didnt have a house, car, tv or dog?? And one didnt care about ever applying for credit again because of the trouble it has brought?
Is it possible to go to prison for not paying?

How long is your credit rating affected?

Thanks
 
redbhoy said:
What if one didnt have a house, car, tv or dog?? And one didnt care about ever applying for credit again because of the trouble it has brought?
Is it possible to go to prison for not paying?

How long is your credit rating affected?

Thanks
Click to expand...

One could end up in prison eventually if one could pay , but didn't.
 
does that mean any payments missed are only on your credit rating for a few years? I always assumed it was blackened forever....!
 
It is simply morally wrong. If that "someone" entered an agreement with a bank, then that person should honour that agreement! Simple as that! It is so wrong on so many levels! I do hope that "someone" thinks before acting...
 
+1 Mongola. Dont draw them on yourself. If you can pay, pay. You cant guarantee yourself you wont want a house in the future and its a silly gamble.
 
Mongola said:
It is simply morally wrong. If that "someone" entered an agreement with a bank, then that person should honour that agreement! Simple as that! It is so wrong on so many levels! I do hope that "someone" thinks before acting...
Click to expand...

Totally agree. Don't take the money unless you are going to pay it back. Would you arrive up at the cash desk in the supermarket with a trolleyload of groceries and say you were going to take it all home but you didn't quite feel like paying for it ...
 
Mongola said:
It is simply morally wrong. If that "someone" entered an agreement with a bank, then that person should honour that agreement! Simple as that! It is so wrong on so many levels! I do hope that "someone" thinks before acting...
Click to expand...

And the banks have loads of morals dont they?? At the end of the day what are the banks losing if the loans arent paid? Digits on a screen maybe?
If someone was at a loss I could agree with the supermarket argument but what does the bank stand to lose? Did they have anything to lend in the first place?
 
redbhoy said:
And the banks have loads of morals dont they?? At the end of the day what are the banks losing if the loans arent paid? Digits on a screen maybe?
If someone was at a loss I could agree with the supermarket argument but what does the bank stand to lose? Did they have anything to lend in the first place?
Click to expand...

The same could be said of your bank account. It's not real , all just digits on a screen.

You don't mind if I empty out those digits do you ?
 
jhegarty said:
The same could be said of your bank account. It's not real , all just digits on a screen.

You don't mind if I empty out those digits do you ?
Click to expand...

Yes, but at least I had to do some work to put those digits on that screen. What did the banks to to loan me credit? Were they at a loss?
 
redbhoy said:
Yes, but at least I had to do some work to put those digits on that screen. What did the banks to to loan me credit? Were they at a loss?
Click to expand...

They (or the tax payer) have to pay the money back later.

It's the same for the bank as it is for you.


If they didn't need to pay the money back then there would be no problems , and AIB wouldn't be reporting billions in losses.
 
jhegarty said:
They (or the tax payer) have to pay the money back later.

It's the same for the bank as it is for you.


If they didn't need to pay the money back then there would be no problems , and AIB wouldn't be reporting billions in losses.
Click to expand...

So I end up paying it back anyway, through my taxes? Well then, my conscience is clear.
 
You must log in or register to reply here.
Back
Top