Are people inherently stupid when it comes to money?

[eek]

A mortgage vendor should ensure that the buyer understands what needs repaying and when, and has the appropriate financial arrangements in place to make that repayment.

Sounds like misselling to me.

I don't think it is. It would have been sold with a repayment plan attached and then the mortgagee would have cancelled the repayment mechanism.

[vetran]

A mortgage vendor should ensure that the buyer understands what needs repaying and when, and has the appropriate financial arrangements in place to make that repayment.

Sounds like misselling to me.

seriously?

people need to take some responsibility for their stupidity.

Its not like its complicated. You borrow £XXXK and then pay half the amount others do you do need to understand why. Its not like they are adding 10% on top of a £50/year insurance payment.

[mudskipper]

I don't think it is. It would have been sold with a repayment plan attached and then the mortgagee would have cancelled the repayment mechanism.

If that were the case, then fair enough - although she may have fallen for the 80s/90s endowment misselling. Is there any evidence that that was what happened?

[mudskipper]

seriously?

Semi-serious

It really does depend on what she was told when she was sold her mortgage.

[eek]

If that were the case, then fair enough - although she may have fallen for the 80s/90s endowment misselling. Is there any evidence that that was what happened?

Nope but even if it was an missold endowment she would have covered most of the loan....

[vetran]

Semi-serious

It really does depend on what she was told when she was sold her mortgage.

partially but such a contract does require a certain investment of intelligence.

If she is mentally sub standard then possibly.

[SueEllen]

Nope but even if it was an missold endowment she would have covered most of the loan....

True.

I know people with unsold endowments and they either have or nearly have paid their mortgages off.

She probably remortgaged and while they where telling her she needed to have an investment vehicle to pay off the mortgage ignored them.

After the pensions then endowment mis-selling financial institutions and brokers have been careful to tell you stuff a minimum of 4 times while taking out the mortgage.

[BigRed]

I feel the same about extended warranties and PPI. Surely people understand that insurance companies are there to make money? a little bit of savings to cover unexpected costs will save you a fortune in the long run.

[SueEllen]

I feel the same about extended warranties and PPI. Surely people understand that insurance companies are there to make money? a little bit of savings to cover unexpected costs will save you a fortune in the long run.

PPI was sold to people who said "No". They got the paper work and found it had automatically been ticked for them.

Other people were told they couldn't get the loan or credit card if they didn't agree to PPI.

Complaining against financial institutions can be a lot of hassle as I learnt last year with Nationwide.

They try all sorts of tricks to not to deal with your complaint from lying to pretending they don't receive your complaint letters to accusing you of being abusive. Most people don't record phone calls so can't prove they behaved themselves and don't send complaint letters by recorded delivery.

In regards to extended warranties I have said to companies for the past few years something along the lines off "So you are admitting the product you have made/sold has a fault with it?" Oddly they they stop trying to sell the warranty to me...

[northernladuk]

I heard this on R4 moneybox repeat tonight. She was very well spoken and confident. I thought it was an actor at first. Some of the stuff she said just didn't make sense though. She expected them to give her a repayment mortgage on a lower rate so she could pay the capital off. Just give her it. No lending criteria or affordability checks. That alone shows she's just not got it.