AIB accused of reckless lending to soccer fans

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Sarenco

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http://www.independent.ie/business/...000-for-fans-to-go-to-euro-2016-34294987.html

I'm curious to hear what people make of this story.

As a depositor/shareholder/taxpayer, these stories always make me nervous.

But should anybody really be taking out a high interest loan to fund a holiday in the first place?

Rather than calling on regulators or politicians to intervene in what, at the end of the day, is a lawful business, surely the Consumer Association should be trying to ensure that consumers are fully aware of the true costs of borrowing excessive amounts to fund current spending. No?
 
Sarenco said:
http://www.independent.ie/business/...000-for-fans-to-go-to-euro-2016-34294987.html

I'm curious to hear what people make of this story.

As a depositor/shareholder/taxpayer, these stories always make me nervous.

But should anybody really be taking out a high interest loan to fund a holiday in the first place?

Rather than calling on regulators or politicians to intervene in what, at the end of the day, is a lawful business, surely the Consumer Association should be trying to ensure that consumers are fully aware of the true costs of borrowing excessive amounts to fund current spending. No?
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I have a feeling that when you actually apply for one of these soccer loans it might not be that easy to get it as suggested by some media commentators.
 
Who cares? Are we really that much of a nanny state that we now pass judgement on the reasons why people borrow money. Who cares if people want to borrow for going to France, a bet on the 2:50 on Haydock or a new car. I remember people taking out huge credit union loans for Italia 90 and every other tournament since.
 
Sunny said:
Who cares? Are we really that much of a nanny state that we now pass judgement on the reasons why people borrow money. Who cares if people want to borrow for going to France, a bet on the 2:50 on Haydock or a new car. I remember people taking out huge credit union loans for Italia 90 and every other tournament since.
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I actually agree with you.

It seems to me that the consumer protection concern is satisfied as long as borrowers are fully informed of the terms and cost of the loan product. If a consumer has the necessary information to make an informed decision whether or not to take the loan and they decide to proceed, well, that's their choice. As long as they don't expect anybody else to pay their debts or bail them out then, frankly, it's nobody else's business.

The Consumer Association might think it's "wrong" or "sends out the wrong message" but it's not actually a consumer protection issue.

The Central Bank obviously is responsible for the prudential supervision of banks - so that they don't go bust again - but that's another matter.
 
This AIB mindset is what got us into trouble .
These AIB (professionals) have learned nought.
Maybe this is what their add {backing brave } means !

Sarenco , Our Failed Central Bank maybe responsible for the prudential supervision of banks. So if Central Bank re-fails;its you and I will pick up the tab !

Sunny, I too didn,t particularly care if someone took out any loan , but I think it having cost you and me 21 Billion to bail out these AIB (professionals),that I would like to see some prudence, not them {backing eejits}.
Weirdly Cu,s got paid back !
 
I would be better able to make a comment if I knew what security the bank was looking for in regard to the loans. If no security is required then there'll be problems. Bertie Ahern made a few comments the other day about how the ordinary Joe and Mrs Soap lost the run of themselves during the Celtic Tiger era and was eaten alive for what he said. If someone starts giving you big bags of sweets for nothing, you're going to get fat. However, I doubt the Bank in question would be that foolish. Would they?
 
Agreed Gerry - that's why I initially said these stories make me feel nervous - for the banks, not the borrowers.
 
30 grand !
Jeez it's not the rugby world cup - not the same demand for Barbour or sheepskin jackets , first class flights , 5 star hotels , jeraboams of champers & roast stuffed swans.

3 grand should cover the cost of hiring a campervan , the cost of a beret & a stripey jumper with a complementary string of onions & all the kronenburg you can swallow.

Ole , Ole , Ole !

Methinks the Indo are exaggerating matters much and all that is unlike that august publication !
 
Shock Horror !! Bank lends money to people !!

For crying out loud, every bank in the country offers unsecured loans for everything from holidays to decorating to whatever the person wants to use the money for. PTSB state they will lend up to €75k and claim to give provisional approval in 5 minutes. it's not a big deal, it's how banks actually make a profit.

The real question here is if their credit scoring is robust enough to allow them to score the applications properly and prudently

this story is a typical lazy indo story
 
thedaddyman.

I hear you and am inclined to agree on {lazy indo} but AIB have proven twice in my life time that their credit scoring is not robust .
No harm to AIB but I really don,t want to bail the $%^^$$%,s ! out again.

ps to anyone reading this , have a good Christmas.
 
I've a great idea, borrow the deposit of AIB and get the mortgage off Bank of Ireland. Happy days are here again. Back in my day it was the credit union.
 
thedaddyman said:
Shock Horror !! Bank lends money to people !!

For crying out loud, every bank in the country offers unsecured loans for everything from holidays to decorating to whatever the person wants to use the money for. PTSB state they will lend up to €75k and claim to give provisional approval in 5 minutes. it's not a big deal, it's how banks actually make a profit.
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Lenders have to lend money to make a profit.
If you're name is on the ICB you probably don't have a hope of getting the loan. If you default on the loan you get your name on the ICB and will have difficulty borrowing in the future.
The interest rate charged is more than double a mortgage rate so there's plenty of leeway built into the business model for some defaults.
 
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