Posts Tagged ‘borrowers’

New Lending Code 12 – Financial difficulties section.

November 24, 2009

 It has undoubtedly strengthened the content of the new Lending Code to put the previous guidelines into the body of code. In this section it has not only been incorporated, but the order and groupings have been made more logical.There have been some changes that limit the extent to which debtors were supposed to comply, and this is wise. I don’t think it removes the duty on a debtor to behave responsibly, but since few debtors will see or read the code before falling into arrears it makes no sense to appear to place an obligation on them in the code itself.There are nearly 50 paragraphs altogether in this part and, if they are enforced well, make a good basis for negotiation.Most interesting of all, perhaps, is the inclusion of a paragraph on treatment of micro-enterprise borrowers. I shall discuss this next time, and then cover the parts of the financial difficulties’ section, before describing the rest of the code.Joseph Harris – Debt Control Man

Author: Control Your Debt Crisis on Your Own Terms


Lending Code Arrogance

November 2, 2009

Since I wrote on this three weeks ago I have been trying to find the text of the new code. Only today have I managed to get hold of it, and it came into effect yesterday.

While my criticisms of Paul Ross, Retail Banking director of the British Bankers Association, still stand, I am happy to thank him for his prompt response today with the inclusion of the link. I needed that since the normal searches revealed nothing.

Click here for the pdf. But don’t expect it to be that easy! Clicking for the pdf here takes you to this link where the pdf link does get the actual document. To me this run-around is a further sign of the arrogance I now see as normal.

This means that no attempt has been made to make the new text, or its new wrapper, easy to find. Yet the actual text and the changes may have massive impact for debtors [as it may do for all who deal with the banks and financial institutions for credit services].

The contempt shown for debtors, for consumers and for their advisors matches the experience of dealing with the worst of the banks.

I will post a series of blogs describing the terms in the new document. At first glance they look like the old with new numbering. But putting effort into a comparison would delay the presentation to you and it might in any case be a good idea to remind ourselves of the obligations on bankers under this new version of parts of the old Banking Code.

My next blog will however be a further attempt to self-therapy to deal with the anger I feel over the run-around. I will speak of Members of Parliament.

Joseph Harris