@natwest_help Making offer to clear loan - Natwest Loan poss irresponsible Lending?

[cancerdebt]

Hi guys

 

I am new here so please don't bite!

 

I will cut a very long saga very short.

 

In a nutshell I have a non secured loan taken our with a large high street bank for £15k.

 

Shortly after taking out said loan in 2008

- for which they did no checks to verify my declared income

- I became ill with cancer and was unable to pay them or anyone else.

I have been paying £1 a month for 3 years.

 

I asked the bank to write off the debt as the stress and worry of this debt was making me even more ill, but the said NO.

They have however given me a glimmer of hope and asked me to make a formal offer to settle the debt.

 

Having never been in this position before, I don't know what to offer them,

but it will mean selling my car in order to raise any money but I would rather do that if this debt can go away.

 

2 questions.

 

Is the bank in any way at fault for lending me the money without asking for any proof of income?

(I was self employed at the time and just had to guess what I might earn that year)

 

Lastly, of an outstanding debt of £13k still, what would a bank deem acceptable by way of a settlement figure to clear.

I was hoping to offer them £3k as that is what my car is worth, but I don't want to do that if they just say no again.

 

Many thanks for any help in advance.

 

Very depressed and recovering from cancer still.

[citizenB]

I will send out some S.O.S for you.

 

Did they not ask for proof of income ?

 

Is this the only debt you have ?

[cancerdebt]

Hi

 

They asked me for absolutely nothing at all regarding my income.

One look at my statement with them would have told them I had next to no income at the time

- this was to start my small business that subsequently folded when I got ill.

 

I have several other debts, totaling £25k, credit cards etc. But this is the only loan.

It was unsecured,

15k over 5 years. I

 

paid the first few months no trouble, but then stopped working due to illness.

 

I have not been great at dealing with the debts to be honest, but had in my mind more important things to worry about. I told the bank this.

 

I sent them the requested letter from my GP thinking they might actually write off the debt (I have no realistic prospect of EVER clearing it).

 

They just stick their heels in and want me to increase my £1 a month or make them an offer to settle.

I don't have a clue how much that magic figure would be.

 

ps. I did 'exagerate' my income like many probably do as I wanted the loan.

I knew I could make the business work, I didn't know I would get cancer.

 

All the same, I would have thought they have some responsibility to verify my declared income somehow.

If they had they would have refused the loand as I now think they should have and I would not be in this mess.

 

Thanks

Edited August 31, 2013 by cancerdebt
Add stuff

[citizenB]

It does appear to be rather irresponsible of them for sure. I am sure someone will look in over the weekend with some advice.

 

I understand it cant be helping with your health, and it is easier said than done, however, I would concentrate on you and try not to let this stress you out. One way or another, there will be a solution

[dx100uk]

any chance you could name names here

 

might give us a better picture on the reality of the situation.

and who we are dealing with

 

dx

[cancerdebt]

My name do you mean? Or the bank? Bank is one of the big 4

[cancerdebt]

IIRC I arranged this loan in 1 telephone call. I never sent them anything at all.

[slick132]

Hi CD,

 

The original thread title suggests this is a NatWest case.

 

Regarding your illness, am I right to assume there is no form DS1500 involved.

 

[cancerdebt]

Hi

 

Yes, this is a Natwest case - silly me, I forgot I said in the title.

 

No, there is no DS1500 involved I am pleased to say. I am in remission having had surgery to remove the tumor last year. I do however have other health related issues - I am as I was when I took out the loan, disabled. So generating an income is very hard for me as you can imagine. I have both physical and mental disabilities - I am classified as an adult with learning difficulties.

 

It takes me quite a long time to type these replies.

[dx100uk]

just to let you know you are not going gaga

- I added the NatWest to the title

and yu are in the NatWest forum as well.

 

dx

[slick132]

Hi CD,

 

Two things occur to me :-

 

1. Approach one of the debt counselling services like National Debtline or CCCS. See what advice they can offer you. Also, the bank may pay more attention if they are approached by one of the recognised debt counselling bodies.

 

2. Speak to one or more of the cancer charities and see if any of them can offer help or advise about approaching the bank.

 

[cancerdebt]

National debtline would not help me as they said because I am self employed, I must go through business debtline. I am not a business, so gave up on that one.

 

I am thinking of talking to the banking ombudsman, as I feel the bank must take some blame for lending someone money who could not AT THE TIME OF THE LOAN afford it.

 

The first few payments were made from the very loan itself, not money I made.

Had the bank asked for proof of my income, I could not provide it as I effectively had none at the time.

They made no such checks, which would in my view suggest irresponsible lending.

 

I have invited the bank on several occasions to take the matter to court, but they just won't.

They just want me to pay as much as possible.

 

I would be ok with paying them off a certain amount, but going back to my original question,

I was hoping someone in 'the know' would suggest a figure that I should offer the bank that would be likely to accept.

I was hoping to get some idea of how much they would get if they sold my debt on,

 

I have been told that it is somewhere round 30% of the debt, ie a £10k loan is sold on for £3k then the new company seeks the original £10k from me.

I don't know how true/accurate this might be.

But if the bank would acecpt say the £3k I could sell the car for I would frankly be happy to do nthat even though

it would leave me without transport, but would remove a huge worry as well and end the matter so I can move on.

 

Obviously I would be happier for the bank to put its hands up and say that they were wrong to agree to the loan, which I strongly believe they were, and write off THEIR mistake.

[slick132]

I'll see if I can get some further input on this for you.

 

Please bear with us ................

 

[cancerdebt]

OK

Edited September 2, 2013 by cancerdebt

[caro]

Is there a reason that you are only concerned about this debt? It's usual to pay creditors pro rata.

[cancerdebt]

Who said that I was only concerned about this one loan? I didn't. What makes you think I am not paying all my creditors?

 

I was asking here because I was of the view that someone here may have the knowledge I was looking for. It seems I may have been wrong about that.

[slick132]

Hi CD,

 

I have asked for input from someone who may be able to offer their advice.

 

However, as the Site Team are all volunteers, they are not here all day, every day, which is why I asked that you bear with us.

 

[cancerdebt]

Oh, that is fine. It was the reply before yours I found somewhat strange.

[Mike_hawk]

Do you have any assets?

[caro]

Who said that I was only concerned about this one loan? I didn't. What makes you think I am not paying all my creditors?

 

I was asking here because I was of the view that someone here may have the knowledge I was looking for. It seems I may have been wrong about that.

 

I didn't mean to suggest that you weren't paying your other debtors. I simply wondered why you would sell your car to pay this particular debt but would still have others to pay off at whatever rate and over whatever period.

 

If you could get a lump sum together why not spread it around and see if you can clear some others too. If you wrote to them all, told them you had £x,000, but other debts of £y,000, so offer them a full and final settlement of whatever proportion the debt is to your lump sum, you may be able to get rid of more than the one debt.

 

£3k won't get rid of all your debt, but it might be worth considering if you can get more of your creditors off your back if you can scrape more together.

 

This thread may help. http://www.consumeractiongroup.co.uk/forum/showthread.php?289378-How-Much-Have-You-Had-Accepted-as-a-Full-and-Final-Settlement&highlight=final

Edited September 3, 2013 by caro

[cancerdebt]

Thanks. I do take things the wrong way sometimes, sorry.

 

That link is VERY useful. I will have a read when I get back today.

[sequenci]

National debtline would not help me as they said because I am self employed, I must go through business debtline.

I am not a business, so gave up on that one.

 

Business Debtline help and advise those that are self-employed as much as they do who run businesses and partnerships etc.

 

The advisers have all of the training that the NDL advisers have + further business-specific training.

 

The reason why they suggested that you call BDL is that you will need to complete a special budget sheet which is slightly more complex than the one on the NDL systems.

 

There could also be potential issues specific to being a sole-trader that might get picked up.

 

In short they are well placed to provide you with the help and advice you need for consumer debt issues just as much as stuff that is business-based

 

It's worth calling them: 0800 197 6026.

 

As regards to your situation, apart from the car do you have other assets? Can you see your financial situation changing in the next 12 months or so?

[cancerdebt]

I read that thread starting with some enthusiasm, but as with several threads I have seen on here, it descended into some kind of one upmanship.

 

Really frustrated with the lack of info out there.

[sequenci]

How about seeking some practical advice from Business Debtline?

[cancerdebt]

I did. They were of no help at all.

 

I am grateful to those who took the trouble to reply, but with respect I may as well have joined the Timmy Mallet fan club and asked them. they would not have had any answers either, but at least I could have shouted that it was UTTERLY BRILLIANT. This experience on here has not been.