Banks to pay for loans if you cannot afford to pay..?

[poo at Paul's]

Well that is how was described on Sky today! Here is the BBC link.

http://news.bbc.co.uk/1/hi/business/8312900.stm


Two minds on this, yes, irresponsbile lending is not good for any of us. BUT, surely you have to rely on some common sense, honesty and integrity from the customers? If they are forced to check every single item of income and expenditure, it will slow up the underwriting process and make the whole thing more expensive for those of us who aint completely stupid or dishonest!

So more excuse for the banks to keep rates massively above base rates...?

This Govt seems to want to just legislate the responsibility for just about anything away from the public and onto businesses. Again, I know of some extremes where the banks need stringing up, but is this a step too far??