Natwest irresponsible lending!!!! Help please!!

[yvonne69]

Hi,

 

My son who is 19, was working abroad as a holiday rep from the age of 17, on a basic salary of less than £250 a month. Once he turned 18, whilst out there, he applied online for an overdraft facility with Natwest, who he has been banking with since a child.

They gave him a whopping £1000 overdraft limit. Which he obviously ate into as he was living on such a low salary. Once back in the UK, and earning a salary of about £650 a month, he stupidly applied online for a loan of £8000, which they actually gave to him, as well as upping his overdraft limit to £2500. As well as giving him another overdraft on another account.

After realising that he was going to really struggle with his debts, he went into his local branch to discuss this with an "advisor" and came out with a consolidation loan of £15000.

He is not 20 for another 4 months, and yet finds himself in serious debt and not being able to afford the repayments.

Is there anything that can be done to actually challenge Natwest giving him these funds in the first place?

Other than that, i think he is going to have to go down the IVA route, as there is no way he can afford it, and i am not in a position to help him myself.

Responses really appreciated!!

 

Thanks in advance.

Yvonnne

[steven4064]

Hi Yvonne

 

Welcome to CAG and the NatWest forum.

 

I don't think there is much you can do. The law says he can get credit when he is 18. Unfortunately, this sort of thing is alltoo common. My own son got into a similar mess, in his case by being allowed store cards and credit cards. NatWest were equally unhelpful.

 

The only other thing is, that if there are bank charges in the debt, to reclaim them, although that will probably have to wait until after the OFT test case.

 

It would probably be worth while consulting CAB if you have not done so already on how best to manage the debt.

[yvonne69]

Thanks Steven!!

 

That was my next step anyway, just thought i would check on this brilliant site!!

 

 

Yvonne

[sammyb2005]

It may be best to speak to Natwest and ask for the account to be transferred to the Debt Management department. They can basically freeze interest etc and agree an affordable monthly repayment. Its also an internal debt management facility, so will not show on any credit reports etc.

[yvonne69]

Thanks for that Sammy, I will get him to talk directly to them.

 

Have you dealt with them yourself? And are they understanding?

 

 

Thanks

 

Yvonne

[sammyb2005]

I worked for them whilst completing my first year of my law degree.

I didnt work for the debt managment department myself but referred people to them who needed help, and i always had positive feedback from customers !!

[yvonne69]

Excellent!!

 

When he actually went in to sign for his last loan of £15000, he had moved to birmingham so had to go into a different branch, and the advisor he spoke to there, couldn't believe he had been given such a large amount, based on his salary.!!

 

I'll let you know how he gets on.

 

Thanks again

 

Yvonne

[sammyb2005]

yeah i agree. I dont understand how it would have passed the free income criteria.

 

it doesn't make sense!!

 

It should have been a straight forward decline from the underwriters!!

 

let me know if you need any more advice.

 

Sammy

[hellhasnofury]

Hello Yvonne,

 

The Nasty West is responsible for many of their customers indebtedness.:o Have you sent of a SAR to have a look at what they have been up to with the account. Penalty charges etc.

 

Did they apply ppi to the loans??????????