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Post by bracknellboy on Apr 20, 2015 18:19:41 GMT
..... Has anyone else seen any more 'replacement' loans not actually doing the 'replacing' bit. Yes, several times. And IMO it is outrageous. In the past I've several times made the point to FC that if the new loan was advertised and listed on the basis of also taking out the old loan, then they should not even distribute the new loan: they should distribute the balance and close the old loan down. Otherwise the whole premise of the listing is wrong: the borrower effectively is left with the ability to continue running both loans and a potentially significantly greater level of indebteness than was the premise of the loan application approval and credit rating; and individual lenders may be left with considerably more exposure than they were led to expect.
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registerme
Member of DD Central
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Post by registerme on Apr 21, 2015 10:31:40 GMT
..... Has anyone else seen any more 'replacement' loans not actually doing the 'replacing' bit. Yes, several times. And IMO it is outrageous. In the past I've several times made the point to FC that if the new loan was advertised and listed on the basis of also taking out the old loan, then they should not even distribute the new loan: they should distribute the balance and close the old loan down. Otherwise the whole premise of the listing is wrong: the borrower effectively is left with the ability to continue running both loans and a potentially significantly greater level of indebteness than was the premise of the loan application approval and credit rating; and individual lenders may be left with considerably more exposure than they were led to expect. How did FC respond?
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