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Originally Posted by Chrysalis
"And no bank would offer a loan to someone they expected to go bankrupt. They just know that of x thousand people who walk through the door, Y of them'll go bankrupt, (and z of them'll go into enough debt for the bank to clean up on the interest charges, but not quite enough for them to stop paying ) so they pitch their rates accordingly so that on average the punters who pay up cover the losses on those that don't. They just don't know which ones that'll be."
Very good point as like many other things the customers who pay up are subsidising the loss making customers, various businesses work like this, but however for some reason a few on broadband have decided this is unfair practice.
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An invalid point though as Banks do risk assessments whereas NTL dont need to do risk assessments. NTL can work on hard facts - ie. your usage. Banks have to allow for some customers becoming 'leachers' ie. bankrupts because they can not fully predict the future. Therefore Banks dont have these loss making customers out of choice but because they are unable to predict the future.
Banks have the ability to refuse a loan to someone - if they can find facts to suggest that person will be a loss maker then they will - the bank's version of a 'leacher' would be a bankrupt or someone with county court judgements etc.
NTL also appear to be wanting to protect themselves from loss making customers.
The only risks in common with a Bank lending money is that NTL have the risk that your monthly direct debit will bounce. So from that point of view NTL do follow the Banking example and take on the risk that you will fail to keep up with payments.
NB. banks also have a kind of 'cap' in place - it's the limit of the amount they will lend if it's a loan, or your credit limit on a credit card or your overdraft limit on a bank account.
