Following on from the Panorama programme yesterday evening I feel the need to decry the one sided nature of the debate. Whilst it is true that many indebted consumers have recklessly taken on more and more credit until they are unable to meet even the interest charges, I feel that the use of the examples broadcasted effectively exonerated the banks and their own irresponsible lending policies and their general attitude to consumer credit.
As can be seen in the recent institutional debt crisis, where there is now an effective shutdown on interbank lending due to a total failure of risk management, bankers are not supermen. I would argue that a significant proportion of the distressed consumer debt that has the potential to cripple the UK economy, is actually as much a result of overly aggressive selling, and a total lack of risk management by the major lenders and credit card providers.
I would not deny that there are many consumers out there who have been irresponsible with their finances, however it would be entirely wrong to blame the current debt crisis purely on the debtors themselves.
Changing the commodity to something more sinister who do you blame more - the addict, or the dealer?
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
