LLoyds Banks Irresponsblie Lending

[barcaboy]

Hi All,

Can anyone give me any advice as to tackling LloydsTSB with Irresponsible Lending,

Over the past few years they have given me Credit cards 3 loans Overdraft then when i got into trouble Offered my father a big loan against his property to help me out,

 

Cheers

[barcaboy]

Hi All,

Can anyone give me any advice as to tackling Lloyds TSB with Irresponsible Lending,

Over the past few years they have given me Credit cards 3 loans Overdraft then when i got into trouble Offered my father a big loan against his property to help me out,

 

Cheers

[CAGisforME]

As a now retired banker I may be able to advise, however I would need more information.

 

For instance:

 

How was the lending irresponsible?

 

What was your level of borrowing re: income?

 

Was the lending offered or requested?

 

etc etc

[barcaboy]

Hi,

Thanks for reply,

It started about 6-7 years ago with Lloyds when i aske for a loan of £6000 which they gave me,

Then when i needed more about two years later they suggested a seperate loan of £20,000 then a year after that they contacted me to say we can do something with your existing £20,000 loan as interest rates changed or something so i went in and they changed this one to a £25,000 loan,

On top of this i had a Gold Credit card which started off at £3500 BUT THEY KEPT INCREASING TO £8,000

Then they upgraded my account to a Platinum Account and also with Platinum credit card which started of £5,000 limit but crept up to £9,000,

They gave me an overdraft originaly of £2,000 but then that they let me increase to £6,000,

All this for a self employed builder on about £25k which they knew as they hold our family Business account,

Obviousley this all got me into trouble and I went to them saying i needed help what can i do,

So they suggested My Father take out £70,000 against the property of his house which he did do,which i try to pay back.

Also they sold me insurance to cover this for about £300 per month,

They are SHARKS

 

Barcaboy

[buzby]

Actually, they are in BUSINESS, as for anyone to argue 'irresponsible' lending, there will be others denied access to money to to their 'responsible' lending policies. It would be very difficult as an individual to prove they were negligent, as they could argue they assessed each loan by their criteria and you posed an 'acceptable risk'. Conversely, they could say the borrower also has to be responsible enough to know when they're being overstretched!

[CAGisforME]

Hi,

Thanks for reply,

It started about 6-7 years ago with Lloyds when i aske for a loan of £6000 which they gave me,

Then when i needed more about two years later they suggested a seperate loan of £20,000 then a year after that they contacted me to say we can do something with your existing £20,000 loan as interest rates changed or something so i went in and they changed this one to a £25,000 loan,

On top of this i had a Gold Credit card which started off at £3500 BUT THEY KEPT INCREASING TO £8,000

Then they upgraded my account to a Platinum Account and also with Platinum credit card which started of £5,000 limit but crept up to £9,000,

They gave me an overdraft originaly of £2,000 but then that they let me increase to £6,000,

All this for a self employed builder on about £25k which they knew as they hold our family Business account,

Obviousley this all got me into trouble and I went to them saying i needed help what can i do,

So they suggested My Father take out £70,000 against the property of his house which he did do,which i try to pay back.

Also they sold me insurance to cover this for about £300 per month,

They are SHARKS

 

Barcaboy

 

 

Ok, well I've have had a look, but without the FULL details (ie what your income and outgoings were at the time) it will be difficult to PROVE irresponsible lending, and, I have to say, on the face of it, it looks like irresponsible borrowing. I'm going to try and explain, but there will be questions that need answering within this if you are going to persue them for lending to you irresponsibly.

 

I will say that you will be unlikely to like my response to this. However I am concerned that you appear to be landing all the responsibility for this debt at the bank's door and don't seem to be accepting any responsibility for it yourself?

 

Firstly the loans: You borrowed £6k. This is what you asked for and presumably you could show that you could afford it.

 

What would you have done if you had been refused?

 

You state you needed more 2 years later. £14k more. Had you kept your payments up on the original loan. What was the extra £14k for? Could you manage the payments? Did you agree to the Payment Protection?

 

Again, had you been refused, would you have "managed"?

 

This was then "re-jigged" when they contacted you "as interest rates had changed" to £25k. Again what was the extra £5k used for? Did you agree to the larger loan and protection?

 

Secondly the Gold Credit Card:

 

The credit limit was £3500. Presumably you spent this? Did the limit raise as your spending rose?

 

What was this expenditure on? Where would you have got these funds if not the Credit card?

 

Thirdly the Platinum Card:

 

Was this along side the Gold Card? Did you spend up to your limit on this too?

 

Again, What was this expenditure on? Where would you have got these funds if not the Credit card?

 

Fourthly the Overdraft:

 

Was this "pre-arranged" or did they grant it after you went overdrawn? WHY was it increased? Was it your spending that increased first? As they increased it was there some reason why you felt obliged to use it?

 

 

 

You mention that you are/were a self-employed builder on £25k. Were you living beyond your means and therefore "got in to trouble" as the payments became difficult to make?

 

 

When you went to them for help what happened? I'm concerned that you state they simply offered to lend your Father the money. Why was your Father involved? Or was it that you realised that you had overstretched yourself and therefore knew that the only person who could help you was your Father? Presumably he offered his help?

 

£25 K Loan

£6k Overdraft

£9k Credit Card

£8k Credit Card

 

This totals: £48K

 

Why was the figure borrowed by your Father £70k?

 

 

 

At the risk of sounding like I'm lecturing, none of this adds up. If you are to accuse the bank of irresponsible lending then I think you should explain exactly why you think they were irresponsible.

 

Did you tell them HONESTLY what you income and outgoings were and therefore what you could afford each month? Or did you, as many do, massage the figures slightly in order to get the lending you required? Therefore, in effect, borrowing more than you can afford.

 

The level of borrowing is at £48k. Have you had the benefit of these funds over the years?

 

Did the bank coerce you to take this borrowing? Did they coerce you into spending it? I doubt it.

 

 

Believe it or not I do feel for you. It cannot be pleasant knowing that you have a debt of £70K to your Father, secured on his home, and having to make the repayment to him every month. However, I think it's important that you accept that YOU have some responsibility here and that, basically, you spent the money and therefore have to "bite the bullet" and pay it back.

 

It is with the benefit of hindsight that you now realise you should not have taken on such borrowing. However, I don't think it's healthy to try and shift the responsibility solely to the bank.

 

My advice is this:

 

If you have incurred charges on any of these accounts you should go about claiming them back and using the proceeds to reduce your overall debt.

 

Do an SAR on each of agreement to ensure that you are aware of the terms etc and to ensure that the agreements are enforceable.

 

Look at your monthly finances, cover your essentials and the loan with your Father and ensure that you are living within your means in future.

 

 

 

I'm sorry if my answer disappoints you, but without evidence to the contrary this looks like a case of irresponsible borrowing, not lending.

[blacksheep1979]

I'm sorry but you can always say no to these loans and you don't have to keep on spending the money.