loans for unemployed housewife.

[edwardburke1976]

my wife was given a loan 3 years ago for 6000 but she had no income except for child benefit and taxcredits.

she later increased it twice to an eventual total of 20000 with no questions about affordability but they did say there was no need for the ppi as she was not employed. Then i lost my job and we could not afford the payments she informed them of this and where very unresonable and offered her a lower payment but that was way over what we could afford. they where also continually charging her account and making it impossable to catch up and make payments as the loan was with the bank(HSBC) and they would not let us make a payment from another bank account.

 

My wife therefor has a bad credit history.

 

Any advice on what we could do about this situation would be great.

 

Ed

[nathal]

was it joint or single application?

 

banks do offer loans to people on benefits and allowances.

 

if the bank have lent more than what could have been afforded, they have lent money irresponsibly.

 

make this the onus if this is the case.

[nellie75]

Yes OFT have issued guidelines regarding non-status lending which states this is the case

[edwardburke1976]

it was a single application and they based everything on the child benefit and tax credits as an income and so when the loan reached 20k the payments where 287 per month which was all but 40 pounds of the benfit and tax credits that we recieved.

[Guest NATTIE]

Has the money been spent? Should also add she can cancel it within 14 days

[edwardburke1976]

spent and repaid over 18 months ago we cleared the loan when we moved house.