For well over five years now I have been unable to get or receive credit from what I would call reputable Companies, I was forced two years ago to purchase a car ( which I needed for employment purposes ) from a garage offering credit to those like myself with bad credit history. A car which on the forecourt cost just under £3000, but when I had finished paying for it, it had cost me over £7000 over 26 months. A deposit of just under £1000 didn't even come off the base line figure and the interest I don't even want to work out. So why in our country do we allow those whom have made mistakes to be persecuted and victimised well after their initial errors, and worst still we are placing them in a scenario that could well lead them back to where they came from, bad credit. Meanwhile the so called legitimate financial institutions can sit back and continue to cream off the top, happy in their own little world of prejudice backed by the credit reference agencies.

I am now 27 years old earning more than I have ever earned in my lifetime, living with a partner and unable to get a mortgage because of my bad history. Living in a household that earns well in excess of £37,000 per annum, paying £600 per month rent as well as standard utility bills, unable to buy ourselves a home, because of a 21 year olds mistakes. I can't even get a credit card, not even the so called Capital One, designed for people like me, unless I put up front £50, for a £500 credit limit, I alone earned in excess of £24,000 last year and I feel that I am still being wrongfully punished for my mistakes although I've paid my debts in full.

I would like someone to explain to me why a bankrupted business man can start a new business having not cleared his/hers debts, and yet I am still being punished. Is this really fair and just, I think not.

Reply

I have long agreed with your overall sentiments, 'angel' or not. The responsibility of credit is a two way thing and lenders are slowly understanding that a credit record with a court judgment 2 - 6 years back can have little relevance to a current credit application. There is still a long way to go before 'main lenders' will change their scoring standards, but new lenders are moving in to take up this vast area: not much use to yourself over the past few years, I know. Knowing how to apply for credit and attempting to 'clean up' your credit record would have made a difference.

You have had years of grief and the lenders have done nothing to help rehabilitate you or those who have genuinely suffered from the lending culture... for this, they should be reproached. Some lenders have taken on the commitment to support areas of help. In an article I explain the reason for responsibility...

"...as a borrower, you should not undertake a commitment that you know you cannot afford. This does not mean that you have to know that you will always be able to pay what is due: you do not know what is round the ‘corner of life’ and if it turns out that you cannot make the repayment the lender has a responsibility to act in a human (and not business-like) way..."

As to a bankrupt, there is a price to pay for 'not clearing debts': six years on a credit record, no finance over £250 allowed, no directorships, personal embarrassment etc. I know many bankrupts laugh at the system, but the government is attempting to single out those that abuse the bankruptcy laws as an aid to cheat everyone. However, as I stated before...

"...should an entrepreneur who started a business, a sound and well run business, but lost control of the company’s survivability through bad luck - ‘just a few more sales’, ‘a bit more backing from the bank’ etc. - be allowed to try again once all matters have been explained to, and sanctioned by the trustee? This option gets my vote..."

The UK's economy is built on the entrepreneur's stomach for risk taking: 'mall company becomes large employer', unfortunately, some small businesses (say, creditors of the entrepreneur) are closed down when the risk doesn't work out.

Finally, I think you have an extremely good grasp of credit and debt, in America you would be considered as a potential successful entrepreneur: odd that!