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Thread: Banks and 'Consumers'

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    Default Banks and 'Consumers'

    I'm not sure if this is posted in the correct section nor, for that matter, if it is an issue at all. Please excuse me if I am way off the mark.

    I heard a very small snippet on the Marian Finnucane Show this morning (I don't even know who was on the panel) about banks and loans. Someone was saying something along the lines that business owners looking for loans offering their houses as security would have to sign an agreement(?) that they were doing so as non-consumers. What is this all about? What is the significance of consumer vs non-consumer? I literally caught only about a minute or two of the show but there seemed to be some issue here.

    As an aside, a client of mine who runs a small business was recently refused a loan from his local Credit Union because he is self-employed. Yet, he has raised and repaid loans from the same source before. Have the CUs changed their lending criteria?

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    Any comments?

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    Quote Originally Posted by consultant View Post
    Any comments?
    I heard only part of the same discussion. I may be wrong, but the sense I picked up from it was that the banks have invented this term 'non-consumer' because it allows them to treat certain (largely business) customers in unpleasant ways that are forbidden by existing consumer legislation - i.e. if you're not actually a consumer then you're not covered by the legislation and are therefore fair game. Alice in Wonderland stuff, of course, but then what isn't, these days, in the wonderful world of Irish banking?

    I stand to be corrected in how I interpreted what was said, though - as I say, I missed part of the discussion.

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    Quote Originally Posted by Mitsui2 View Post
    I heard only part of the same discussion. I may be wrong, but the sense I picked up from it was that the banks have invented this term 'non-consumer' because it allows them to treat certain (largely business) customers in unpleasant ways that are forbidden by existing consumer legislation - i.e. if you're not actually a consumer then you're not covered by the legislation and are therefore fair game. Alice in Wonderland stuff, of course, but then what isn't, these days, in the wonderful world of Irish banking?

    I stand to be corrected in how I interpreted what was said, though - as I say, I missed part of the discussion.

    Thank you. That is the impression I had also.

    If we are reading it correctly, then, not only are banks providing insufficient credit facilities to businesses, where the owners of those businesses are prepared to put tangible assets up as security for loans, the banks will in effect be able to apply exhorbitant conditions?

    Money-lenders were condemned for that sort of thing.

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    Welcome to Ireland! Where all the little people pay, and pay! And the elite can play and play!

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    Quote Originally Posted by consultant View Post
    If we are reading it correctly, then, not only are banks providing insufficient credit facilities to businesses, where the owners of those businesses are prepared to put tangible assets up as security for loans, the banks will in effect be able to apply exhorbitant conditions?
    That's certainly what I understood from it

    Quote Originally Posted by consultant View Post
    Money-lenders were condemned for that sort of thing.
    Yeah, but money-lenders went to the wrong schools, don't you know....

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    Quote Originally Posted by Mitsui2 View Post



    Yeah, but money-lenders went to the wrong schools, don't you know....

    Boarders, no doubt!!

    Pity there hasn't been some revisionist education for the 'bankers'.

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    On MI, ISME claim that banks are looking for personal collateral worth in excess of any loans given to business clients. They also state that credit is STILL an issue.

    Only a week or so ago, the government announced their new jobs-focussed initiative. So, where the hell is the financial support for existing and new entrepreneurial ventures?

    Why are they tolerating a banking sector that in effect is facilitating the closure of businesses and at the same time riding anyone who tries to start a new one?

    Just what, practically, is the thrust of government initiative?

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