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IS this bad lending


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My 19 year old niece is currently being chased by a finance company for defaulting on a car loan which based on what she told me should never have been lent.I don't know if it's a case of complete financial mismanagement on her behalf or irresponsible lending /loan arranging. Perhaps someone can advise me what she should do.

 

I'll list the facts as I know them.

  • She was earning around £120 per week take home pay.
  • She already had two loans totalling £2000, a credit card balance of £500 and a monthly contract phone usually around £60 per month
  • No assessment was made of her current outgoings.
  • Her stated earnings were 'tweaked' by the loan arrangers on their advice to suggest she usually earned enough.
  • The wage slips used to demonstrate earnings were not current. Two were required only one was recent.
  • The loan granted was around £5000
  • The loan defaulted
  • The car has since been vandalised because she couldn't afford to drive it as the insurance had lapsed too.

It sounds to me like she was badly overstretched by this and should have been refused the loan by any responsible advisor. Her finances have collapsed as a result.

 

I'd like to hear your comments and advice and thank you in advance for them.

 

 

 

Regards

Mark

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I will move your thread into the General Debt Forum. You should get some useful advice and help there.

 

Regards, Rooster.

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My 19 year old niece is currently being chased by a finance company for defaulting on a car loan which based on what she told me should never have been lent.I don't know if it's a case of complete financial mismanagement on her behalf or irresponsible lending /loan arranging. Perhaps someone can advise me what she should do.

 

I'll list the facts as I know them.

  • She was earning around £120 per week take home pay.
  • She already had two loans totalling £2000, a credit card balance of £500 and a monthly contract phone usually around £60 per month
  • No assessment was made of her current outgoings.
  • Her stated earnings were 'tweaked' by the loan arrangers on their advice to suggest she usually earned enough.
  • The wage slips used to demonstrate earnings were not current. Two were required only one was recent.
  • The loan granted was around £5000
  • The loan defaulted
  • The car has since been vandalised because she couldn't afford to drive it as the insurance had lapsed too.

It sounds to me like she was badly overstretched by this and should have been refused the loan by any responsible advisor. Her finances have collapsed as a result.

 

I'd like to hear your comments and advice and thank you in advance for them.

 

 

 

Regards

Mark

 

 

Totally irresponsible isn't it?, but you'll have to get everything in your hands to prove this. I'm no expert, and I'm sure others will come following me here with good advice. However, you will need to do a number of things I would send a letter to the finance company letter 'N' http://www.consumeractiongroup.co.uk/forum/general-debt/20758-creditors-dcas-letter-templates.html

to obtain a full copy of her Credit Agreement (even if you have a copy).

 

I would also send a Subject Access Request also to them: https://mercury.glentruim.com/cag/servlet/actionrequest - that's automated.

 

I would also write to the credit Reference Agencies Experian, Equifax and Call credit to ask for her credit files - they can be done online or by post for £2 a time, this will tell you what a lender would have had access to to make their lending decisions upon.

 

Once you have the full picture then you will be in a position to put together a claim against the loan broker who was clearly breaking rules to inflate her income which is illegal in itself.

 

Treat it as you would someone coming to dinner - PREPARE - and you'll get justice with facts. Your niece has clearly been manipulated and needs redress.

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Hi Mark, I also posted this on your post in the welcome forum, you seem to have made a duplicate post but never mind! :)

 

So sorry to hear of your nieces problems, it does sound very irresponsible of the lenders and arrangers.

 

Before anything else, as you suggest that her finances have collapsed, could I suggest that she contact the Consumer Credit Counselling Service. This is a direct link and all the contact details can be found on the website.

CCCS - Free Debt Advice from the UK's Leading Debt Charity

Their service is free and in my opinion from personal experience without equal.

 

Spend a few days familiarising yourself with the CAG website and when you or your niece feel ready start your own thread/s in the debt forums.

 

Good luck & best wishes, Dave.

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I think it would be importantant to put all your concerns in a complaint to the lender, send it recorded delivery and keep a copy. ask for their code of practice for lending and their complaints procedure. Once you've exhausted their complaints procedure you should then take it up with the FOS.

 

our complaints procedure and how to complain

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How old was your daughter when she made the agreement?

i will be off site for the next month or so. if you have any problems, feel free to report the post so a moderator can help you.

 

I am not a qualified or practicing lawyer.

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:D

 

Ok, ok, pendantic... whadda ya doin' trainin to be a lawyer or summut?:D

i will be off site for the next month or so. if you have any problems, feel free to report the post so a moderator can help you.

 

I am not a qualified or practicing lawyer.

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would I be right in thinking here, that if the lenders files show a - let's say 'inflated' - income, then the agreement is totally invalidated (not to say FRAUDULENT), and the debtor should be entitled to ALL her payments back?

Or am I getting carried away?

 

;)

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would I be right in thinking here, that if the lenders files show a - let's say 'inflated' - income, then the agreement is totally invalidated (not to say FRAUDULENT), and the debtor should be entitled to ALL her payments back?

Or am I getting carried away?

 

;)

 

You are getting carried away. The shop assistants / sales people commited an offence, but your daughter also probably commited an offence.

 

Really, though, if they were fiddling with your daughters income, what's the chance other bits of the form (like APR, interest rates, repayments etc) are also wrong? Quite high, i would presume.

i will be off site for the next month or so. if you have any problems, feel free to report the post so a moderator can help you.

 

I am not a qualified or practicing lawyer.

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Thanks For all your replies everybody and sorry for my late respone ;work beckoned . I'll be acting on all of this ASAP. I'll start will by getting her to write to the lender notifying them of a complaint and telling them she is having the situation looked at by a debt councellor. This I hope will but enough time to look through the link you all kindly provided.

 

I presume if the loan arranger 'cooked the books' on the income side he will be clever enough to make it look like false information provided by my niece.

 

I'll Keep you updated with any findings as I appreciate your kind advice and it may help someone else.

 

As I was once told: A little bit of help is worth an awful lot of pity.

 

Thanks All

Mark

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