If you've a personal unsecured loan but default(don't pay it back)what can a bank do(aside from credit rating)?Sunday, October 30th, 2011
I guess they can’t take anything you own in lieu as the loan is unsecured? I’m not doing this, repaying loan in full, it’s being "restructured" but just wondering in general what happens if someone say, nah, f it.
Take money from someones salary? But most likely the person, I stress not me (honestly), would have moved to another bank. So to get their hands on anything I guess the original bank would first have to get a court order and that takes time and costs (the bank)
I wonder what if the bank was responsible for what’s termed reckless lending, in that they didn’t initiate proper checks prior to issuing the loan? Of course it could laways be argued the applicant didn’t think as to whether they could afford repayments but perhaps they could have at the time but circumstances chaged, as they do and as can be often unforeseen. As I said this ain’t about me, the loan I have is being repayed with interest having been "restructured". But I think many even after a restructuring cannot pay their debts. Pity banks didn’t think of their duty of care to their shareholders before engaging in so much reckless lending.