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An important question re banks, financing, loans, etc...

An important question re banks, financing, loans, etc...

Old Nov 24th 2008, 9:34 am
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Default An important question re banks, financing, loans, etc...

Seeing as things are progressing here and elsewhere in the world with banks having their feet up in the air and acting like vases; what would happen to people who financed their car loans, or got credit cards or personal loans or home loans when the bank they got the financing from collapses??? Are they still liable or the loans get wiped off/written off???
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Old Nov 24th 2008, 11:20 am
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Default Re: An important question re banks, financing, loans, etc...

not sure about personal debts, but with places like Lehmans Bros, those owing money to it when it when bust, bascally said to the administrators, "come and get it".

so i would imagine with personal finances, the debt would be pursued as an 'asset' to the now-bankrupt-company for the administrator to find. they'd probably put the debt out for sale to recovery companies and have them chase you for it. i would imagine the interesting part is whether or not the debt companies would see interest on the loan or just the outstanding balance at the time the company went bust?
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Old Nov 24th 2008, 11:23 am
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Default Re: An important question re banks, financing, loans, etc...

Originally Posted by still.unsure View Post
not sure about personal debts, but with places like Lehmans Bros, those owing money to it when it when bust, bascally said to the administrators, "come and get it".

so i would imagine with personal finances, the debt would be pursued as an 'asset' to the now-bankrupt-company for the administrator to find. they'd probably put the debt out for sale to recovery companies and have them chase you for it. i would imagine the interesting part is whether or not the debt companies would see interest on the loan or just the outstanding balance at the time the company went bust?
So it can still be a grey area scenario...I hate grey areas...
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Old Nov 24th 2008, 11:31 am
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Default Re: An important question re banks, financing, loans, etc...

Originally Posted by Confucius View Post
So it can still be a grey area scenario...I hate grey areas...
But I hear that there are some reasonably inexpensive on-line Nigerian loan providers available. Certainly no grey areas there.
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Old Nov 24th 2008, 11:35 am
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Default Re: An important question re banks, financing, loans, etc...

Originally Posted by lionheart View Post
But I hear that there are some reasonably inexpensive on-line Nigerian loan providers available. Certainly no grey areas there.
That's a black, I mean, African-American area...
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Old Nov 24th 2008, 1:12 pm
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Default Re: An important question re banks, financing, loans, etc...

Originally Posted by Confucius View Post
Seeing as things are progressing here and elsewhere in the world with banks having their feet up in the air and acting like vases; what would happen to people who financed their car loans, or got credit cards or personal loans or home loans when the bank they got the financing from collapses??? Are they still liable or the loans get wiped off/written off???
If the firm announces that they have written off all debts (i.e. they don't expect to get anything back from their borrowers), they must be stupid - nobody announces that, for prercisely the reasons you mentioned.
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Old Nov 24th 2008, 1:25 pm
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Default Re: An important question re banks, financing, loans, etc...

Originally Posted by Confucius View Post
Seeing as things are progressing here and elsewhere in the world with banks having their feet up in the air and acting like vases; what would happen to people who financed their car loans, or got credit cards or personal loans or home loans when the bank they got the financing from collapses??? Are they still liable or the loans get wiped off/written off???

As a very general rule (& UK slant).....Debts due to Company in receivership/administration assigned to Creditors in order of ranking.
Again, very generally, Debts/Loans don't die with you, a claim can be made on your Estate.
hth
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Old Nov 24th 2008, 1:32 pm
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Default Re: An important question re banks, financing, loans, etc...

Originally Posted by The Dean View Post
If the firm announces that they have written off all debts (i.e. they don't expect to get anything back from their borrowers), they must be stupid - nobody announces that, for prercisely the reasons you mentioned.
Let's say, for argument sake, Citi goes under, bankrupt, and i have a Plutonium Credit Card from them, does the money that I owe them get written off and I don't owe them anything????
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Old Nov 24th 2008, 1:32 pm
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Default Re: An important question re banks, financing, loans, etc...

Originally Posted by Eva View Post
As a very general rule (& UK slant).....Debts due to Company in receivership/administration assigned to Creditors in order of ranking.
Again, very generally, Debts/Loans don't die with you, a claim can be made on your Estate.
hth
Then why am I paying Insurance on Cards, and loans of any type???
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Old Nov 24th 2008, 1:35 pm
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Default Re: An important question re banks, financing, loans, etc...

Originally Posted by Confucius View Post
Then why am I paying Insurance on Cards, and loans of any type???
In case they don't go bust??
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Old Nov 24th 2008, 1:37 pm
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Default Re: An important question re banks, financing, loans, etc...

Originally Posted by The Dean View Post
In case they don't go bust??
I'm guessing it's the word "they" you wanted in bold???
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Old Nov 24th 2008, 1:37 pm
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Default Re: An important question re banks, financing, loans, etc...

Originally Posted by Confucius View Post
Then why am I paying Insurance on Cards, and loans of any type???
You fell for the Sales Pitch.???


Actually, isn't that for critical illness and say if your card gets stolen and bumped and you are remiss to report?
Dunno Musicman, read the smallprint I guess.
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Old Nov 24th 2008, 1:41 pm
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Default Re: An important question re banks, financing, loans, etc...

Originally Posted by Eva View Post
You fell for the Sales Pitch.???


Actually, isn't that for critical illness and say if your card gets stolen and bumped and you are remiss to report?
Dunno Musicman, read the smallprint I guess.
No, I fell for you...Smartass...

Really, I'm under the impression that they get you to pay an insurance (Credit Shield, or something) when you get the monthly statement on the card, I always thought its to pay off the debt in case the cardholder emigrates to the other planet...
And also, as for car or personal loans, IIRC, they also let you pay in advance an insurance premium in advance all in one go...
Please some banker, or an Indie, correct me if I'm wrong...
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Old Nov 24th 2008, 1:44 pm
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Default Re: An important question re banks, financing, loans, etc...

Originally Posted by Confucius View Post
Let's say, for argument sake, Citi goes under, bankrupt, and i have a Plutonium Credit Card from them, does the money that I owe them get written off and I don't owe them anything????
as nice as that would be, my understanding is that no, the debt doesn't disappear when the bank stops trading. instead, your 'debt' (i.e. USD$10k) becomes and 'asset' to the administrators of the receivership. the administrators, being responsible for repaying any of citi's creditors, would pursue you for the USD$10k (or as much of it as possible) so that they could use it to repay the creditors to citi. what i understand happens in reality is that your debt to citi is then sold to specific debt collectors (who pay maybe $0.70 in the $1 for it, allowing the administrators to get some money for it now) and then the debt collectors come after you for it.

so, to cut through all that, no, don't go nuts on your citibank card, someone will eventually come asking for you to repay it (it may just not be citibank...)
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Old Nov 24th 2008, 1:45 pm
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Default Re: An important question re banks, financing, loans, etc...

Originally Posted by Confucius View Post
No, I fell for you...Smartass...

Let me help you up....

Really, I'm under the impression that they get you to pay an insurance (Credit Shield, or something) when you get the monthly statement on the card, I always thought its to pay off the debt in case the cardholder emigrates to the other planet...
And also, as for car or personal loans, IIRC, they also let you pay in advance an insurance premium in advance all in one go...
Please some banker, or an Indie, correct me if I'm wrong...

Yes there is a kinda 'guarantor' arangement too.Please I am only speaking generally here.
I don't use personal credit cards,so I can't say definitively.
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