Re: More Corbyn Pie In The Sky Dreamsville

It's true that I don't fully understand the concept of capping.

However, if a cap were to be introduced of, say 10%, would the credit card companies still find it sufficiently attractive to continue supplying the credit card service?

Quite simply, is it definitely a matter of greed or is it perhaps a necessity in order to run a competitive business?

I certainly don't know. Is there any concrete evidence of the former?

Again, I would argue that using a credit card, or any loan provider, should only be undertaken if the borrower has, or will definitely have, the means to repay their debt.

Re: More Corbyn Pie In The Sky Dreamsville

Your point is well made JBR.

It's a problem.

Lenders must balance the risk of lending money against the amounts they receive in interest from those who are less of a risk. The one funds the other, just as all the good and decent safe drivers out there effectively fund the dangerous antics of reckless drivers who make lots of claims to insurance companies.

When you mess with a business model, something else has to give. It is inevitable and unavoidable.

Thus if Corbyn and his Toytown loonies place a cap on interest charges then the credit card companies will not be able to keep generating the revenues they currently do. That in turn will mean that the high risk borrowers (the poor people, one's without jobs, without assets etc) will be deemed more of a problem because when they inevitably default on their loans, the credit card company doesn't have the revenues from everyone else to match those losses.

So what is the inevitable outfall from this whole strategy?

The credit card companies will lend to less people, the more high risk individuals will likely be refused any credit at all.
The interest rates on everyone else's cards will likely rise which is how they will recoup the money they were previously getting without an interest cap.

So, once again, this "socialist" approach achieves little but to take more money from ordinary decent people in order that the high risk people can keep doing what they do. Something about that just isn't right.

The focus here should not really be on amounts of interest charged. The focus should be on properly dealing with and assessing risk and what the government ought to be doing is putting regulations in place to prevent credit card companies and other lenders from lending to toxic high risk individuals. It was such lending after all that created the 2008 financial crisis and meltdown.

All Corbyn is doing here is generating a nice sounding policy that the naive electorate will buy into.

Re: More Corbyn Pie In The Sky Dreamsville

Nail on head.

Re: More Corbyn Pie In The Sky Dreamsville

Not such much a nail on the head as a plentitude of illogical and biased (or should that be bigoted?) thinking.

Other lending institutions seem to manage to make money without charging the extortionate interest rates used by credit card companies and without unduly penalising borrowers.

I’m left to conclude that the two of you don’t have much of a clue about prevailing interest rates generally and even less about the finance industry.

Your aversion to Corbyn seems to be affecting your critical thinking capacity.

Re: More Corbyn Pie In The Sky Dreamsville

Bang on target!

Re: More Corbyn Pie In The Sky Dreamsville

I am quite sure that Diane Abbot, the lady with a fantastic grasp of finance will sort out the problem, failing that this guy is good with numbers too...

https://order-order.com/2017/11/23/m...ervicing-debt/

I don’t think that LoonyLabour knows it’s arse from its elbow.

Re: More Corbyn Pie In The Sky Dreamsville

Update on matters financial,
Labour gives its staff a pay rise .....ish

https://order-order.com/2017/11/24/l...-30p-pay-rise/

Re: More Corbyn Pie In The Sky Dreamsville

Even if they take it within context they can rightly portray him as a complete Rocket ( Scots slang Alert!)

Re: More Corbyn Pie In The Sky Dreamsville

Again, I had to look that up.

It seems that the Scots have yet another word for 'that item'!

So he's a rocket and a wallop!

Re: More Corbyn Pie In The Sky Dreamsville

Haha! That's funny. The Gadget Show I recorded today.

'Wallop of the Week', with Harry Wallop (an expert).

I bet he's blissfully unaware of the Scottish slang!