Rants 'n' Raves

Finance /Credit Companies

I recently read a letter from a finance company, which almost dumbfounded me with the sheer stupidity it appeared to display.

The effective content of the letter was that, if a payment of a certain amount (a relatively small monthly payment) was not paid, then a payment of the full outstanding amount (obviously substantially higher) would be required.

I find it incredible to believe that these kind of letters are actually sent. I can only put it down to one of two things. Either one, the finance company is genuinely stupid, and doesn't understand that MAYBE the small payment couldn't be made, so obviously (well to anyone with common sense) the larger one would be equally impossible to make. The other alternative is that the finance company never actually intended to demand the full amount, but thought it would take the opportunity to wave a big stick around in a threatening manner.

Either way, I can't see how this kind of letter can be justified. If the former is the case, then of course it can just be written off to sheer stupidity, after all, what sane minded system would say the equivalent of "You can't afford £50? Ok then, pay £500 instead" - wha?, and if the latter is the intended purpose, well, I for one don't respond well to either threats or attempts at bullying, and not does my friend - the letter, by the way, quickly joined the after dinner scraps in the rubbish.

While I have receieved similar correspondence myself in the past - it wasn't a letter addressed to me that provoked this little ramble - it was to a close friend who just happened to be having a short term, but nontheless genuine, financial hiccough, and she just couldn't pay the small monthly payment (once - EVER). The letter didn't ask if there was a reason - it just seemed to assume that she had chosen, for no good reason, to just not pay - the idea that maybe there was a reason she COULD not pay didn't seem to have been even considered as a possibility.

With all of the advertising contantly bombarding us to take this loan, apply for that card, consider this mortgage etc., it is apparent that financial lenders DO want customers... I just can't figure out why, once they have them, they consider it so reasonable to treat them so badly....