Debtors in court - Banks must share blame

OUR courts are dealing with a huge increase — between 30% and 40% in a year — in the number of cases involving people who have been, for whatever reason, unable to repay loans.

Though some people borrowed more than they were capable of repaying they could not have done so unless they had the support of reckless bankers determined to generate business no matter what the risk. This is the principle at the root of the subprime crisis that has undermined the stability of the world’s economy.

Recognising the role of the banks in this situation the Society of St Vincent de Paul (SVP) has called on the lenders to show restraint in confronting bad debts.