Question about credit history.

[nt0351]

Originally Posted by ray38l

that's what I think but surely the bank could tell him that.
also its been 18 months, surely if its been sold on someone would want there money by now

he has defaulted ,they have no obligation to tell him anything it could take years ...they suss him out first,...when they determine that he has a capacity to pay then they pounce ,..all the while the interest just accrues,this makes recovery more worthwhile.

there are two ways to bring it to a head ,..if nobody has made contact deposit the outstanding amount into the loan account and it will quickly become the banks problem or if he wants to snooker the recovery people tell him to declare bankruptcy

[xisled]

Originally Posted by ray38l

that's what I think but surely the bank could tell him that.
also its been 18 months, surely if its been sold on someone would want there money by now

Has the person moved address or anyhting in the last 18 months. Maybe recovery company does not have his up to date details.

[el_wagon]

Originally Posted by buddy92

The only one with Veda is $40+ guess I have to pay that for accurate one?

They hide the link on their homepage, but try this http://www.mycreditfile.com.au/home/...redit-file.dot

[I reckon]

Originally Posted by T3ts50

Your kidding right

No I'm not they love giving money out to people who can't afford flash cars.
So they get the car back then sell it off to recoup the funds . Seen it happen plenty of times .

[Miss_XR6]

Originally Posted by ray38l

seeing as though we have some people with backgrounds in finance I will ask a question my brother has been worrying about.
he had a $18000 personal loan with the Commonwealth bank with 7 years to pay it off. 12 months into the loan term he lost his job and couldn't pay the loan for 8 months. in that time he got a default notice and then a month after that he got a letter saying the loan is finalised. this was 18 months ago and when he got back into work he rang the bank to organize to pay it and the bank says he has no loan with them.
the question is do banks ever just write off debt?
a mortgage broker said that they might have done it because the only default listed is the original one and nothing has been added since. he also hasn't had anyone else contact him about the loan.

Does it show on his credit rating as default???
Get him to get a copy
If its been paid out either someone paid the loan without telling him or its been passed on to a debt recovery officer
But 18mnths they would of made some sort of contact I would think

[Shonky.]

Originally Posted by piggsy

No I'm not they love giving money out to people who can't afford flash cars.
So they get the car back then sell it off to recoup the funds . Seen it happen plenty of times .

Asset quality and bad debts ratios are one of the most watched measures in lending

Lenders will do all they can to avoid the situation you are describing

[Miss_XR6]

Originally Posted by piggsy

No I'm not they love giving money out to people who can't afford flash cars.
So they get the car back then sell it off to recoup the funds . Seen it happen plenty of times .

This is true

Use to work in car sales and the odd person would get a loan approve when there negative in there bank account on a daily basis
A few months later we are knocking on the door getting the car back
This was 5 years ago now not sure if they still do it

[buddy92]

Only debt which I have is a telstra and optus thing I ain't paid in months. Guess I better start if I want to get a new car in few years

[I reckon]

Originally Posted by Miss_XR6

This is true

Use to work in car sales and the odd person would get a loan approve when there negative in there bank account on a daily basis
A few months later we are knocking on the door getting the car back
This was 5 years ago now not sure if they still do it

Thank you I rest my case .

[I reckon]

I know a girl 20 yrs old unemployed just had a baby I wonder when it's the lender responsibility to show a bit of common sense. To show they cannot afford to pay it back .

Everyone else can see she can't afford it except the lenders who are lending her 14 k no worries we will give it to you .

It's to easy to get loot these days . Take motor finance wizard for example lol

Aren't they due for another run on ACA ?

[stevanford]

Originally Posted by piggsy

I know a girl 20 yrs old unemployed just had a baby I wonder when it's the lender responsibility to show a bit of common sense. To show they cannot afford to pay it back .

Everyone else can see she can't afford it except the lenders who are lending her 14 k no worries we will give it to you .

I'd want to know where her parents are to knock some sense into her.

[buddy92]

Originally Posted by buddy92

Only debt which I have is a telstra and optus thing I ain't paid in months. Guess I better start if I want to get a new car in few years

These the kind of things that ruin chances?

[I reckon]

Originally Posted by stevanford

I'd want to know where her parents are to knock some sense into her.

At 20 you should already have it!

[Shonky.]

Originally Posted by piggsy

Thank you I rest my case .

on what exactly?

Originally Posted by piggsy

No I'm not they love giving money out to people who can't afford flash cars.
So they get the car back then sell it off to recoup the funds . Seen it happen plenty of times .

because cars appreciate don't they, the surplus equity (once the costs of repo and admin are covered) would mean delinquent loans are very profitable.

I have a business idea. How about a finance company that actively seeks loans that are likely to not be paid? I will attract as many people without a means to service the loan as possible and the increase in value of their cars over time will ensure my success

[buddy92]

No fighting please guys.

[imugli]

Having worked for a non conforming lender in the past I can tell you the LAST thing they want to do is repo your car. Firstly because they'll miss out on the 17% interest you're paying and secondly because a car is a depreciating item. When the finance company auctions it, RARELY if ever do they get what they are owed. This then get's written off and a cedit default placed against the debtor.

The reason vehicles are repo'd so quickly is not because finance companies want to put a bad mark against your name. It's because a vehicle is a mobile item. If all avenues for payment arrangements have been exhausted (and this often involves VCAT here in Vic) the car is repo'd ASAP to minimise the risk of the debtor skipping through.

No finance company wants to repo anything you get on credit from them. They'd rather you pay overdue fees and penalty interest until you get the thing up to date than incur legal fees, repo fees and auction fees they'll probably never recover.

[I reckon]

Originally Posted by shonkymofo

on what exactly?



because cars appreciate don't they, the surplus equity (once the costs of repo and admin are covered) would mean delinquent loans are very profitable.

I have a business idea. How about a finance company that actively seeks loans that are likely to not be paid? I will attract as many people without a means to service the loan as possible and the increase in value of their cars over time will ensure my success

Shonkymofo lol you have the right name anyway to start a business lmao

[Yellow_Festiva]

Originally Posted by buddy92

These the kind of things that ruin chances?

Buddy...

An debt of $4.51 put on my account by accident had the power to hold back a 950K property purchase....

Once it goes further, they add default fees, court costs etc etc etc... makes that $20 unpaid bill become $700 in no time...

[GULL]

This idea makes the world go around !Then the government bails them all out and it starts all over again,

Originally Posted by shonkymofo

on what exactly?





because cars appreciate don't they, the surplus equity (once the costs of repo and admin are covered) would mean delinquent loans are very profitable.

I have a business idea. How about a finance company that actively seeks loans that are likely to not be paid? I will attract as many people without a means to service the loan as possible and the increase in value of their cars over time will ensure my success

[Shonky.]

Originally Posted by GULL

This idea makes the world go around !Then the government bails them all out and it starts all over again,

Bad policy does often spawn this as people are incentivised into risky behaviour due to lack of consequence of doing so.

That's how subprime started. Risky loan writing by mortgage brokers in their quest to earn comissions saw them writing loans for EVERYBODY without any balance of consequence (to them)

Similar to the example Miss XR6 pointed to above. No doubt driven by desire to sell another car/write another Finance contract lending standards slipped. I would say the rates on these loans would have been very high to try and price in the high risk of the borrowers, but once again their greed was not constrained by any impact immediately upon them.

In both these examples risky lending practice leads to higher delinquency rates in loan portfolios

BUT

The intention was never to write a bum loan, it was just inevitable when you try and sign everyone up with no regard to book quality.

No financier ever wants to write a bad loan

Originally Posted by piggsy

finance companies .....they love people who cant pay money back ..............thats what they hope you to do fail in your repayments so they can reposses your car .

[nt0351]

all you young guys & girls out there take the tip (at the risk of sounding like your mum & dad)
in this day and age of " must have it NOW " ,..credit hardly ever pans out the way we think ,...you run a very real risk of damaging your credit rating and ruining any chance of borrowing for something worthwhile down the track not to mention by the time its paid off its worth next to nothing ,..don't get sucked in to easy money,....no such thing ,...save hard for what you want ,..it will give you immense satisfaction & a sense of achievement buying a car you always wanted with your own funds ,..not to mention by the time you have saved enough to achieve your goal ,..the asking price has usually come down to a more affordable level ,as someone else has already copped the initial hit
credit looks attractive until you cant make payments ,..then its you that's looking average and nobody wants to know you if you cant pay back your debts,..too many people get into this cycle and never recover financially

[imugli]

Originally Posted by nt0351

all you young guys & girls out there take the tip (at the risk of sounding like your mum & dad)
in this day and age of " must have it NOW " ,..credit hardly ever pans out the way we think ,...you run a very real risk of damaging your credit rating and ruining any chance of borrowing for something worthwhile down the track not to mention by the time its paid off its worth next to nothing ,..don't get sucked in to easy money,....no such thing ,...save hard for what you want ,..it will give you immense satisfaction & a sense of achievement buying a car you always wanted with your own funds ,..not to mention by the time you have saved enough to achieve your goal ,..the asking price has usually come down to a more affordable level ,as someone else has already copped the initial hit
credit looks attractive until you cant make payments ,..then its you that's looking average and nobody wants to know you if you cant pay back your debts,..too many people get into this cycle and never recover financially

This. Or better still buy a shitbomb and use the rest to buy a property that will give you enough rent to fill said ******* every week without needing to work for it.

[buddy92]

Can anyone tell me who I call to get a default sorted out? Ended up with one on mine and want to get it fixed up so I can get a new car in 6 years

I learnt the hard way young and stupid :(

[xisled]

Call the company who put the default, find out who has the account. Call the company. Make the payment. After 5 years it will be gone.

[buddy92]

Ok. I thought I can just call a credit reporting agency and fix it all up through them.