Now it appears that it is accepted practice within the world of banking & borrowing that should any unauthorized borrowing occur that this will incur punitive (by any other name) charges, say you go five pounds overdrawn, a computer automatically charges you, say, £30.00.
Now this in some essence is to impart a sense of responsibility upon the customer, and a little to cover “costs”. But is it not like throwing bricks to a drowning man?
After all when the house of cards that was built by unscrupulous workers within the finance industry, most of whom were savvy enough to feather their own nests, when it all collapsed, the financial institutions went to the UK Gov & the bank of england and essentially asked: “please sir, can I have some more”.
And the good ship Albion was obliging.
Now students need to start paying back their grants after their income reaches a certain level, (over £20k or so), well why not have the same policy for our captains of these monetary vessels? earn over twenty grand and start towards paying back the charges your bank has since incurred from this unplanned financial bail out?
This could also be an alternative to repossession/bankruptcy situations, perhaps people could attend a hearing where they have to lay their debts & mistakes upon the table, if sufficient acumen, intent and it can be demonstrated that it would be for the public good that an individual/small business could be given a government secured loan repayable when incoming earnings reach an agreed figure.
but that wouldn’t work now would it?