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Discuss this article (11 Comments)Oh no, not again
by This email address is being protected from spam bots, you need Javascript enabled to view it on Tuesday, 09 June 2009
On a flight back from London last week, I did something naughty. At around 10,000 feet over the Arabian Gulf, as we made our final approach to Dubai, I turned my mobile phone on, just to see if it worked.
It did. And I got a call straight away, from Standard Chartered Bank, offering me a new credit card.
It took two minutes to explain to the lady on the other end that I am on a plane, I can’t talk. I don’t want a Standard Chartered card. I had one two years ago and it was the worst ever experience of my entire life. Money just disappeared, bills I never incurred appeared.
The charges were shocking. And it took three months to get “closure” even though I paid it off in full.
She has called me three more times this week. So have three reps from Royal Bank of Scotland, four from First Gulf Bank, and two from Dubai First. They all want to give me something I don’t want – credit.
Lending, it would appear, is back in fashion. The credit crunch is over. Banks are back to their old habits, and their lending strategy is exactly the same as before.
1/ Get absolutely anybody’s mobile phone number.
2/ Call them several times a day, to offer a credit card or loan up to AED250,00
3/ Tell them that no salary transfer letter, or even proof of income, is needed.
Between 2004 and 2008, during the boom years, this worked. Mugs like me said “great!”. We bought fancy cars to make us look rich, plasma TVs to make us look cool and designer clothes to make us look trendy.
I admit, I was as guilty as most of your reading this probably are as well. Last night while we were clearing out the spare room, my wife confronted me over why I owned two PlayStations, four guitars, and a Samurai sword.
“After just eight months of marriage, you’ve been secretly seeing Standard Chartered, haven’t you?” she asked.
(Luckily she didn’t find the “teach yourself to be an astronaut” DVD box set which I keep hidden at work).
But like many of you, I paid a big price. I reckon thousands of dollars worth of interest charges on the credit cards I once owned, not to mention being hounded by the banks if I was more than an hour late with payments.
However, the credit crunch was a much needed wake up call. I cleared all the cards, cut them up and said goodbye to the old days of spend, spend, spend. (I have never felt more liberated).
So now we are back full circle. The many billions recently pumped into the banks to kick start lending is feeding through to the masses. I was even offered a mortgage yesterday by a guy I met in the car park from RAK Bank.
The question is, how many of us will take the bait this time?
Of course, consumer spending is needed to get the economy moving again. But like house prices never returning to their peaks, I suspect spending will never be the same.
We will do it in a more measured, sensible way. Those of us still in jobs have learnt (or been forced) to live within our means. The UAE’s economy will thrive again, but at a pace that is manageable. And that can only be a good thing.
As we move forward, the only losers will be those banks who practically forced money down our throats. (Yes, I know, we took it, it’s our fault as well).
But if the end result is that I never in my life get a call again from Standard Chartered, I will throw a huge party - paid for upfront in cash.
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
To Ad
Posted by Dan, Stockholm, Sweden on Friday 12 June 2009 at 16:40 UAE time
Sorry Ad, but if keeping your job requires destruction of other peoples life’s, by giving them exorbitant loans, and the horrific treatment they get later, then maybe they should find other jobs. Bad business usually goes under sooner or later.
Everyone has a job to do, even the mob collectors. Maybe we should feel sorry for them as well.
Posted by Dan, Stockholm, Sweden on Friday 12 June 2009 at 16:40 UAE time
Sorry Ad, but if keeping your job requires destruction of other peoples life’s, by giving them exorbitant loans, and the horrific treatment they get later, then maybe they should find other jobs. Bad business usually goes under sooner or later.
Everyone has a job to do, even the mob collectors. Maybe we should feel sorry for them as well.
every one has a job to do
Posted by Ad, Dubai, UAE on Friday 12 June 2009 at 10:31 UAE time
Anil just like u r searching for a an article to write its part of ur job so as those people who called u .. they have targets and they are working hard to get customers and thier prefromance is important to keep thier jobs! now put ur self in thier place and u dont have anything to write say for 3 month u will get FIRED..i suggest that u put ur self in other people place before u write! just cause of this alot of people might loose thier JOBS!
Posted by Ad, Dubai, UAE on Friday 12 June 2009 at 10:31 UAE time
Anil just like u r searching for a an article to write its part of ur job so as those people who called u .. they have targets and they are working hard to get customers and thier prefromance is important to keep thier jobs! now put ur self in thier place and u dont have anything to write say for 3 month u will get FIRED..i suggest that u put ur self in other people place before u write! just cause of this alot of people might loose thier JOBS!
Oh no, not again - Well Said
Posted by Nimisha, Dubai, UAE on Thursday 11 June 2009 at 13:54 UAE time
Anil, surely it is a great article, rather an eye-opener.
For those who found this article, I must say, negativity is in your mind.
And, for those who haven’t been hounded by calls from the banks, let me make you aware, banks are back to their old tricks!!! Probably you aren’t those unlucky lots who receive calls from the bank when you are outside the country or busy!!
Why can’t you people just read the article and try to get the positive message from it instead of criticising the editor.
There are many people who have been lucky enough to be employed and have learnt their lesson the hard way – to stay within their means!! Anil, I must admit that your article took me back in times, when I had just begun earning and my mother gave me an advice:
Learn to stay within your limit, don’t overspend just because you have job today. Think about tomorrow, penny spent on stuff you don’t require will only add to junk!! Spend and invest wisely and you surely will be proud of yourself!!!
Posted by Nimisha, Dubai, UAE on Thursday 11 June 2009 at 13:54 UAE time
Anil, surely it is a great article, rather an eye-opener.
For those who found this article, I must say, negativity is in your mind.
And, for those who haven’t been hounded by calls from the banks, let me make you aware, banks are back to their old tricks!!! Probably you aren’t those unlucky lots who receive calls from the bank when you are outside the country or busy!!
Why can’t you people just read the article and try to get the positive message from it instead of criticising the editor.
There are many people who have been lucky enough to be employed and have learnt their lesson the hard way – to stay within their means!! Anil, I must admit that your article took me back in times, when I had just begun earning and my mother gave me an advice:
Learn to stay within your limit, don’t overspend just because you have job today. Think about tomorrow, penny spent on stuff you don’t require will only add to junk!! Spend and invest wisely and you surely will be proud of yourself!!!
RE: Negative Editor
Posted by Nofer on Thursday 11 June 2009 at 12:26 UAE time
Get a life??? U surely ddidnt understand my statement. I said i look forward to his articles, i didnt say they're rubbish. They are good articles and well thought of and he's a solid editor.
Nevertheless, he's so negative. Very negative. To the extent that when i see his picture on Arabian Business with a new post, i know he's got some very negative news in it.
He, however says the truth with some exageration.
Posted by Nofer on Thursday 11 June 2009 at 12:26 UAE time
Get a life??? U surely ddidnt understand my statement. I said i look forward to his articles, i didnt say they're rubbish. They are good articles and well thought of and he's a solid editor.
Nevertheless, he's so negative. Very negative. To the extent that when i see his picture on Arabian Business with a new post, i know he's got some very negative news in it.
He, however says the truth with some exageration.
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