I read that this morning.
Yes, this is a mess in the making.
I am getting angry about the way the finance sector looks for more and complex ways to fleece people from their money.
When we took out a PCP on the AMG there was no check on our ability to pay. OK, we chose a PCP as we didn't want to use capital, but that isn't the point.
No one should be given credit, for anything, without an affordability check.
I'd apply the same test used for mortgages to credit cards, overdrafts, payday loans, store cards, everything. I'd apply it retrospectively and for all loans deemed "unaffordable" force the lender to wipe off the debt. That would take the smile of the greedy loansharks faces.
I have a BA AMEX Card, all my work expenses go on it. Over the years the available credit limit has been pushed up by AMEX, without me asking, and now stands at 50% of my annual salary. OK, as a % of my expenses and salary it is much more realistic, but that isn't the point. I have access to credit that is way beyond my ability to pay it back.
