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    (Original post by nexttime)
    (copied from another response) I would suggest banning credit cards, at which point it would become financially viable for banks to offer a service providing such protection. It could perhaps be made law for this service to be offered at a reasonable price.

    The current system of credit cards having it and debit cards not seems...silly.

    I would ban it as it is just a system that preys on the weak (even if it is their own fault) and, as far as i can see, has few (if any) advantages.
    I don't see how you can justify forcing banks to provide a service that will lose them money, make them give up a very profitablt part of their business at the same time.
    In order to pay for that they would have to raise rates for oter things or reduce interest payments.

    I also ideologically can see why the government has any right to force banks to do this.
    You can also get screwed over by many other things other than credit cards.
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    (Original post by Dubstepper)
    if you hava good history with a bank theyre usually good to you?
    I know that. They can also be crafty sods when something goes wrong. That's my issue with them.

    My own bank are getting arsey with me because I don't want an overdraft or credit card with my Student Account. They struggle to understand 'no thank you' apparently ¬¬
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    (Original post by nexttime)
    Bad credit is its downfall, as we're seeing.
    I'm not contesting that!

    I think anyone did disagree with that would be foolhardy.

    I think certain practices in the financial services industry should be regulated tighter with more stringent controls on lending but I think banning credit cards is a typically TSR "way off the mark" resolution in a similar manner to "Should smoking be banned?" and the likes.

    I.e. way off the mark.
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    (Original post by Quady)
    But why would you want/need a mortgage?

    Paragraph two contradicts paragraph one methinks...

    oh sorry i didnt make myself clear.

    gettin into 'debt' for a big purchase like a house is ok. because your average joe dont have £300k sittin in the bank or will have after 5yrs of workin their socks off.

    but people who put things like cars, boob jobs, holidays etc. = big no no
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    (Original post by Quady)
    Mate you're wrong. I get paid 1% for using it.

    Very few cards (only the very high end ones) actually have a charge.
    like i said i read this in a report. and if you see the other post i replied to you will see what i wrote
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    (Original post by Laurah5498)
    I know that. They can also be crafty sods when something goes wrong. That's my issue with them.

    My own bank are getting arsey with me because I don't want an overdraft or credit card with my Student Account. They struggle to understand 'no thank you' apparently ¬¬
    Can you not just take them and not use it?
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    Some people do need them or can use such responsibly. They aren't some demonic weapon.

    There should just be tighter limits on how much they can be charged, corresponding to a person's income. Also, universal defaulting should be made an illegal business practice.

    Other than that, people should be responsible for taking proper control of their finances.
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    (Original post by Laurah5498)
    I know that. They can also be crafty sods when something goes wrong. That's my issue with them.

    My own bank are getting arsey with me because I don't want an overdraft or credit card with my Student Account. They struggle to understand 'no thank you' apparently ¬¬
    lol arsey with you for not wantin it really? maybe its cuz this is a service they can charge you for later. but with all sales people you need to hava strong mind and be able to not give in and its very good that youre not givin in to them! x
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    (Original post by crazylemon)
    Can you not just take them and not use it?
    I'd be too tempted to use them and end up in a similar mess to what my mum's been in xD

    If I haven;t got the money for something then I'll have to wait for it. I'll be in enough debt after Uni without having to faff about with credit card bills and the like.
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    The solutions you're providing would practically get rid of 90% of the money and economy that we have. The whole idea of banks and credit is that whatever cash you put in, that amount X10 the bank gets (but just theoretically, not in cash) and therefore gives out loans that, again, will theoretically be paid out in the future. Without banks, investments would be killed off and the economy will shrink even more. We are finding ourselves in a deep hole indeed and it's going to take a complete make-over to get out of it.
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    (Original post by Dubstepper)
    lol arsey with you for not wantin it really? maybe its cuz this is a service they can charge you for later. but with all sales people you need to hava strong mind and be able to not give in and its very good that youre not givin in to them! x

    Yep xD

    My account bod person thing is tearing his hair out over it. I had a lovely conversation with him today about it and him telling me about all the fun he had with his when he was a student.

    That's fair enough but I'm going to be eyeballed in debt and don't fancy any more!!
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    (Original post by Laurah5498)
    I'd be too tempted to use them and end up in a similar mess to what my mum's been in xD

    If I haven;t got the money for something then I'll have to wait for it. I'll be in enough debt after Uni without having to faff about with credit card bills and the like.
    That is a fair point, the temptation is there.
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    (Original post by Quady)
    Sorry I'm a bit of a thicky I kinda thought you could use a debit card in any situation you could use a credit card!?
    (Original post by nexttime)
    :confused: I'm aware of no such things. A debit card always suffices... please inform me what i cannot buy!
    You need a credit card to hire cars abroad. The legal protection works both ways - to secure a consumer's purchases, and to secure a company's services.

    I also believe that its not so much the banks fault, but the individuals. Yes, banks are ruthless and won't bat an eyelid at repeatedly lending you more than you can pay back, and I've had to keep a sharp eye on santander taking the piss with me and its store cards, but that's the key point - be responsible with your finances.
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    (Original post by Dubstepper)
    oh sorry i didnt make myself clear.

    gettin into 'debt' for a big purchase like a house is ok. because your average joe dont have £300k sittin in the bank or will have after 5yrs of workin their socks off.

    but people who put things like cars, boob jobs, holidays etc. = big no no
    So its ok to borrow money if you want to borrow a lot of it, but if you want to borrow a small amount of money then thats bad?

    Wouldn't houses cost less if people couldn't leverage to buy them?

    A car isn't a big purchase now? Interesting.
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    (Original post by crazylemon)
    That is a fair point, the temptation is there.

    Yep xD

    Its like having that 15th biscuit because you might as well finish the packet
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    (Original post by nexttime)
    I would suggest banning credit cards, at which point it would become financially viable for banks to offer a service providing such protection. It could perhaps be made law for this service to be offered at a reasonable price.

    The current system of credit cards having it and debit cards not seems...silly.
    The s75 protection isn't offered as a 'service' as such - it exists because credit firms have to provide it, and I can't imagine that many consumers would want to pay for what would essentially be an insurance service if this was only available on debit cards. Forcing it on banks would, as per my earlier post, end up discouraging banks from offering debit cards.

    As a point that's not been brought up yet, it's not practical for the UK to ban credit cards in isolation. Financial institutions in other countries could continue to offer them, which would just make the UK less competitive, both for banks and for the users of credit. Credit cards are too ingrained internationally for a global ban (or even a ban across the EU) to be practical either - there would be too great an outcry from both businesses and individuals.

    As pointed out by izaldo, credit is a lubricant of the financial system. If credit cards were banned, many people would still have to find credit. Credit cards are just one form of credit, generally best suited to short-term credit arrangements, but have their place in certain circumstances. They provide quick and easy access to credit, often necessary when funds are needed in a short timescale; the problem is that some people use them as long-term credit, for which they are expensive - there are other forms of credit (e.g. secured mortgages) which are better suited for this.

    I'd argue that a better solution would be to increase the minimum repayments required against credit card balances, effectively shortening the period over which the credit is provided, and forcing them to be used as they're best designed to be. When balances remain outstanding for a long time, it could feasibly become a requirement to have a consultation with banking advisers to arrange for appropriate (and cheaper) long-term finance.

    Overdrafts are another form of short-term finance, and even authorised overdrafts can have interest rates similar to those charged on credit cards - would you suggest banning overdrafts as well?
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    (Original post by Quady)
    So its ok to borrow money if you want to borrow a lot of it, but if you want to borrow a small amount of money then thats bad?

    Wouldn't houses cost less if people couldn't leverage to buy them?

    A car isn't a big purchase now? Interesting.
    You're reading his post wrong. He wasn't talking about one of the purchases (cars, boob jobs, holidays etc.), but all of them, ie people who buy so many thinking each time they can pay it off, that it all adds up.
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    (Original post by Laurah5498)
    Yep xD

    Its like having that 15th biscuit because you might as well finish the packet
    I suppose.

    I am obsessed the other way, I ruthlessly read TOCs and hate spending money for no reason.
    Thus a credit card is ideal for me
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    (Original post by crazylemon)
    I suppose.

    I am obsessed the other way, I ruthlessly read TOCs and hate spending money for no reason.
    Thus a credit card is ideal for me
    Aha xD

    I'm a debit card girl. I only usually take cash with me on a night out and even then most of it is gone. I'm dangerous with more than £5
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    (Original post by *Star*Guitar*)
    You need a credit card to hire cars abroad. The legal protection works both ways - to secure a consumer's purchases, and to secure a company's services.
    Really? My dad didn't when we were in the US...

    And is this a 'common purchase'? You might as well have said there is a Cufflink seller called Ken from Hull who only takes credit cards as he doesn't like taking transactions where banks don't make a commission.
 
 
 
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