Irresponsible Lending

[gizmo111]

Hi,

 

Not sure where this should be but it relates to a Nat West loan so this seems the obvious place. Last August my 72 year old disabled father was given a top loan from NAt West as he was struggling to pay his bills,and his overdraft was creeping up, they paid overdraft off and increased his loan repayments from 229 per month to 261 per month. His total income from benefits and pensions is 1059 per month, his essential outgoings ie mortgage, utilities, food, home help etc are 820 per month, this loan leaves him -22 per month, before he pays his other commitments credit cards etc. I am in the process of writing to all concerned and offering them token payments, but my question is do we have any comeback on Na West for irresponsible lending, the balance of the loan is now 17800. We have to change bank accounts before we can offer them token payments. Any help/advise appreciated.

 

Thankyou

[callumsgran]

Hi there fellow bristolite, not sure about this one i'm afraid, you may have a case. you could always try the consumer credit counselling service or CAB, see what they say?

[katesage]

This definately sounds like irresponsible lending to me as your fathers full financial details were not analysed otherwise it would have been very obvious that he would be unable to manage.

My sister has been fighting LLoyds TSB (who have an 'irresponsible lending department' in Bristol), they gave her a 2k credit card on 21.4% whilst she was on benefits. The case has gone to the financial ombudsman who verbally agreed with her point of view and urged her to pursue the complaint.

Have a look at the 'Which' website, they have some good contact numbers and will give you further advice.

I dont know if your fathers credit rating is important to him ie need for cards/mortgages etc but it seems the likelyhood of him being able to stay in the black is going to be nigh on impossible. It might be an idea to speak to Payplan, they are a 'banking' service paid for by the banks to assist people in managing their debts. They deal with your creditors and set a sensible payment level that leaves the individual with enough to live on each week. They are NOT a debt management company who should almost always be avoided. It seems inevitable that your dad will go into default, try and get some safeguards in place before that happens.

kate

[gizmo111]

Hi Kate,

 

Thanks for infor -I have looked on which site and cannot find anything relevant. How did your sister get as far as taking her complaint to the financial ombudsman? My dad's credit rating is shot tot pieces anyhow, I am dealing wiith thing s for him whilst he is in hospital. I have contacted payplan and they are prepared to help I was going to offer full and final settlement on his behalf at around 50%, so he has nothing to worry about when he comes out, but to do that I have to remortgage, I never realised he was struggling as much as he has been since my mum died till recently, but I though that Nat West in particular should take some of the blame for lending him the money, and if there is any chance of getting it written off or reduced then I will try that route first. He also has some charges that I am going to reclaim, and then I will have a figure of what is outstanding and how much I need to offer. he has been using credit cards to keep his bank account in the balck to pay the loan., I just am unsure or to be more precise complety in the dark about where to start with this complaint.

 

Thanks any more info/advice ideas from anyone would be welcome.

[daisy lighter]

I was just about to ask if your dads loan was secured to his home but if payplan are taking him on I reckon it must be a personal loan.

Info given here is on secured lending but it may give you an indication of what is considered responsibile lending.

With secured loans the lenders have to of course fact find the applicant and have proof of amount of 1st mortgage payment. This is order to keep all mortgages to be below 40% of the applicants monthly income. (only one lender uses 45% that I know of)

 

£1059 by 40% In your dads case his maximum mortgage amount is £423.60

His loan is £261.00 so his mortgage should be no more than £162.60 to fall within the acceptable lending levels.

If his mortgage payments came to any more than £423.60 this would be considered irresponsible lending.

 

It does sound like your dad has been given more than what would be considered managable debt.

Do check that he has no PPI on his loan though -

 

Cat

[gizmo111]

I was just about to ask if your dads loan was secured to his home but if payplan are taking him on I reckon it must be a personal loan.

Info given here is on secured lending but it may give you an indication of what is considered responsibile lending.

With secured loans the lenders have to of course fact find the applicant and have proof of amount of 1st mortgage payment. This is order to keep all mortgages to be below 40% of the applicants monthly income. (only one lender uses 45% that I know of)

 

£1059 by 40% In your dads case his maximum mortgage amount is £423.60

His loan is £261.00 so his mortgage should be no more than £162.60 to fall within the acceptable lending levels.

If his mortgage payments came to any more than £423.60 this would be considered irresponsible lending.

 

It does sound like your dad has been given more than what would be considered managable debt.

Do check that he has no PPI on his loan though -

 

Cat

 

Hi,

 

Thanks for that it is an unsecured loan. His mortgage repayment is £363 per month but he actually pays 235 and I pay rest. So on that basis 235 plus 261 is 496 which is £75 more than you quote above. However in his total income he receives £160 per month attendance allowance which is for his disability needs and he pays out £80 of that in essential caring needs. I know the woman that arranged this new loan for him has left bank, as I challenged her 2 years ago on the previous loan that I thought he had overstretched himself on. (I bank at same branvh and have an authority letter from him).

 

There is no PPI due to his age - 72. Any info on how I go about challenging this loan, as he really cannot afford this.

 

Thanks

[katesage]

To commence formal claim about irresponsible lending you must engage in 8 weeks of pointless letter writing to demonstrate reasonable communication with the lender. Ring Financial Ombudsman and Which to get more advice about what to say in letter, but basically set out your dads finance and put it to them that they have lent irresponsibly. It may not take 8weeks but the bank have to issue a final response within the 8 weeks to trigger the Financial Ombudsman to investigate the claim. We mentioned the F/O s involvement in every letter but it didnt make any difference, but they were slippery about issuing a final written response. The FO is now investigating which will take several weeks.

As you say you can claim back any charges they may have put on his account which may reduce the total outstanding.

You may as well get the ball rolling asap before you have to resort to remortgaging. I would keep that option on the back burner, your dad is a vulnerable, ill pensioner, you will find sympathy and support, talk to as many people as possible, Help the Aged, DebtLine etc etc there will be help out there.

My sister also recently had her entire £750 water bill cleared just by finding out about an water industry run charity who felt she merited an award. Keep pushing because you shouldn't have to jeopordise your finances to help your dad. loads of luck, kate

[katesage]

Ooops! Missed the bit that you'd already looked on Which Site. Try ringing them, I know we spoke to them at length. They have a service whereby you can chat with a solicitor for about 15mins on the phone. I signed up to Which as a member because there Consumer Info stuff is first rate. They definately helped us in the early stages of our battle with LLoyds.

[la2006]

ARR THERE ANY LAWSFOR irresponisble lenidng claim bank THAT I CAN LOOK AT.

[gizmo111]

ARR THERE ANY LAWSFOR irresponisble lenidng claim bank THAT I CAN LOOK AT.

 

 

No laws , but if you start a new thread and tell us about your problem then we will try to help.

 

This is a very old thread you have posted on.

[1littleduck]

Hi all,

I need to post a question and cant figure out how to do this, there is no button on my screen only the reply button...can anyone help..

Thanks

[clairewood070203]

katesage, could u possibly give the address for the department in lloyds that deal with irresponsible lending as we believe we have a case to put to them.

Their branch manager gave us loans and an overdraft we clearly could not afford and in fact played with figures slightly to secure us the finance. in 5 years they have doubled our debt to 45,000, over half being owed to them. we have now entered a debt managemnet plan with cccs which at its current payment would take 19yrs to pay off. lloyds have in fact refused the offer fromm cccs for the credit card and initially accepted for laons but now changed mind as they have not received payment (even tho, cccs have had my payment and told companies they would be paid on 25th of each month, acording to my calander we r not yet on the 25th?). Lloyds have also ignored our request to cancel the loan protection on each loan thus bringing the level of debt down. LLoyds so called "help" has not only increased our debt but has put major strain on my young family. we dont smoke, drink or eat out. we rarely have family days out (have 3 children, 5 and under) we have had one family holiday in 5yrs which was a sun paper holiday to pontins and my parents ended up giving us money for petrol etc or we couldnt of even done that.

Any suggestions/advice on where to seek help or who to talk to would be appreciated.

Thankyou

[1littleduck]

Hi Clairwood..

This is a very old thread and it is unlickly that people will see your post.

I would advise you to start a new thread and help will be along.

You would need to tell us when the loans and cards were taken out, and if possible, it may help if you could scan them and post a link for us to see the agreements. (i use photobuckt)

Dont worry.. I have 2 loans and 3 credit cards with lloyds tsb and am in the same situation as you. you will receive a great deal of help on here, you are in the best hands possible.

[1littleduck]

link to my thread, but you would really need to start your own

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/216866-cca-request-lloydstsb.html#post2390301

[clairewood070203]

cant find where to start new thread??

[1littleduck]

click the consumer forum ajust above the CAG announcements, you will then see a button to start a new thread.. any problems just shout.