home
in

Mis-Sold loan ?

Last post Mon, Nov 14 2011, 12:29 PM by Zeb. 7 replies.
Sort Posts: Previous Next
  •  Mon, Nov 14 2011, 12:29 PM

    Re: Mis-Sold loan ?

    majorwally: I personally would like to see refunds similar to the PPI scandal.

    The PPI scandal that you talk about also would have paid your loan for you when you did lose your job and would not have left you in this "untenable" position.

    The fact that PPI has/had been sold on an unfair basis previously does not mean that the product itself is to be ignored. If you had a loan, you almost certainly would have been offered the chance to take PPI on it and if you chose not to then how can you possibly blame the banks for putting you into a position where by you now do not have the funds to cover the loan that you applied for without any kind of protection to pay it back? The PPI would have paid your loan repayments until you were back in work.

    If you had a mortgage and didn't take out life assurance and then died. Would it be the banks fault for giving you the mortgage or would it be your own fault that your partner now had to pay the mortgage on their own with no further help from anyone and very often cases like this end up as a repossesion because they cannot afford the loan repayments on their own.

    Buckle up and bite the bullet. The banks gave you the money but they did not refuse you the opportunity to take the PPI that would have put you into a safer position.

    • Post Points: 5
  •  Mon, Nov 14 2011, 11:38 AM

    Re: Mis-Sold loan ?

    "Banks simply lent to anyone. I know, as they lent to me when I was heavily already in debt. "

    They lent to you because you asked them.

    "My own fault, well no, not really. You don't expect to lose your job do you? "

    They lent you money that you asked for to live a life you couldn't afford.

    "So I blame the banks 100%"

    What about personal accountability and individual responsibility? Decent hard working folk save up for what they want, and if they can't afford it, they do without.

    This is not *all* the banks, this is lifestyle choices, based on credit instead of reality.

    Sorry to be the bearer of bad news - don't shoot the messenger. Remember, that those of us who have saved all our lives are now being spanked with low interest rates, because of this crisis.
    • Post Points: 5
  •  Mon, Nov 14 2011, 9:07 AM

    Re: Mis-Sold loan ?

    Of course it was mis-sold.

    It's high time the Banks were held responsible for this sort of lending and I personally would like to see refunds similar to the PPI scandal.
    I don't suppose they would refund the loan amount, but certainly the interest.

    Banks simply lent to anyone. I know, as they lent to me when I was heavily already in debt.
    My position is now untenable.
    My own fault, well no, not really. You don't expect to lose your job do you?
    Well, not in those days you didn't.

    So I blame the banks 100%

    I notice they won't lend to anyone now unless they have 50% loan to salary ratio.
    Well, this is how it should have been in the first place, then decent hard working folk might not get into this mess!
    • Post Points: 35
  •  Fri, Oct 07 2011, 2:02 PM

    Re: Mis-Sold loan ?

    I agree with maxsteam there is no possibility of getting the loan instalments back. The bank paid out the £15,000 so how can you claim it was mis-sold. The PPI premiums and interest were probably mis-sold but a refund will only reduce the overall debt.

    I would suggset that your friend declare herself Bankrupt and be debt free tomorrow rather than wait until she is 70.

    The lesson is be careful what you sign.

    • Post Points: 20
  •  Tue, Oct 04 2011, 12:35 AM

    Re: Mis-Sold loan ?

    There is no possibility of getting the loan installments that have been paid back. Future loan installments will depend on informal or formal agreements/arrangements and your local Citizens Advice Bureau will advise further on this. She might get somewhere arguing that the PPI was missold and it may be possible to recover that part of the payments made and avoiding paying further PPI amounts (if these are still being charged?)

    I expect that the form(s) signed indicated that relevant warnings had been received and, possibly, that the salary was more than £500 per month. You should ask for copies of the form(s) to be sure.

    • Post Points: 20
  •  Mon, Oct 03 2011, 11:33 PM

    Re: Mis-Sold loan ?

    Hi Maxsteam and thanks for your comments

    As I said in the post the agreement was a 'sole' loan agreement in her name only so she has been servicing the loan on her own

    I take onboard what you said about the child tax / separation date but I am thinking more along the lines that she was 'missold' this loan and as such it is therefore invalid. If it's invalid then she is entitled to have her premiums repaid in full along with the ppi (or loan payment protection as it was then .....don't think ppi covers a husban leaving unless he's involved in the agrrement which he wass not ?

    Regarding loans off premises.......even if you take out a loan via internet or on the phone today they ask your personal circumstances and give you the statutory statement regarding failure to keep up payments etc. She was shown a credit agreement that her former partner sorted with a bank and then signed it at home..she never even went to the bank or met the bank guy that issued the loan and sold her the ppi so nothing was explained to her .....Surely this is mis-selling even in 2001 ?

    • Post Points: 20
  •  Mon, Oct 03 2011, 7:47 PM

    Re: Mis-Sold loan ?

    poppy321:

    Could a loan be set up off-premises in circumstances like this with no details explained to her by the bank manager..not even a phone call ?

    Yes. It's possible to borrow money over the internet, by phone or through the post.

    poppy321:

    How can a lender realistically think that a person with 4 young kids and an income of less than £500 per month can service a loan with monthly repayments of £380 ? (her hubby at the time earned approx £1400 per month)

    It is possible that it was a joint loan however, for joint debts, it is up to the creditor whom they chase. She can ask the lender/collection agency for full details of the loan.

    I certainly feel that a chat with an adviser at your local Citizens Advice Bureau would be worthwhile. Questions that need to be asked in addition to those that you've raised include

    Is there a case for either claiming on the payment protection insurance or, if it does not cover the current situation, asking for a refund of the premiums paid?

    Is she receiving child tax credits, working tax credits, child maintenance and other amounts that she may be entitled to? Has she decided a date to declare as the date of formal separation - this will be needed to help with a claim for tax credits.

    Can the loan repayment agreement be put in writing so that there is no need for the nuisance phone calls? If she wishes, she can ask the collection agency not to phone anymore and to communicate by post - this wont save any money but it should stop any more phone calls (it's worth making the request in writing if there's doubt about whether the collection agency will take notice of the request).

    • Post Points: 20
  •  Mon, Oct 03 2011, 7:06 PM

    Mis-Sold loan ?

    Hi Guys...I need your help

    A friend of mine I think has been mis-sold a loan from a major high street bank in 2001

    Briefly, my friend's former husband had a loan in his sole name of £15,000 over 5 years to purchase a car and was paying some £440 per month

    He went to the bank where they had a joint account for advice with view to reducing the monthly loan repayments. Bank manager told him during the visit that if a new loan was taken out in his wife's name the bank could reduce the payments to approx £380 per month over 5 years with an APR rate of 10.4 percent (she had been with the particular bank for 15 years and apparently had a good credit rating and the interest rate had then become more favourable)

    Husband came back with paperwork from bank and got wife to sign up to a sole loan agreement of £15,000 with a monthly loan repayment of £317 plus payment protection insurance loan of £68 per month taking the total loan to £18,100 (she's not great with financial matters and thought her husband had actually set up a joint loan as her income was so small)

    At the time her income was less than £500 per month as she was only able to work part-time having 4 young children. They both lived in council accommodation so she had no security for the loan

    At no time did she see the bank manager who issued the loan or take any advice from him..it was all done by her husband and the bank manager. She signed the paperwork at home and hubby took it back to the bank and the money was transferred into their joint account.

    8 months later hubby left her and the kids and after 3 months on such a small income she was unable to afford the loan repayments. They also had an joint overdraft which she also could not afford to pay. The Bank then put the matter in the hands of debt collection agency and after some considerable time they froze the interest on the loan but she has been paying reduced payments off the loan and also the joint overdraft for some 10 years now (former hubby does not pay or even get chased for the joint overdraft !)

    The banks collection agency hound her about every 3 months on the phone asking her if she increase her payments or even borrow money off friends or relatives to pay more off the loan...it really stinks to me

    Some questions...

    Could a loan be set up off-premises in circumstances like this with no details explained to her by the bank manager..not even a phone call ?

    How can a lender realistically think that a person with 4 young kids and an income of less than £500 per month can service a loan with monthly repayments of £380 ? (her hubby at the time earned approx £1400 per month)

    I know some people will think (as i did) why the hell did you not read the loan agreement ? but genuinely she never though for one minute that anything was untoward as her former husband set it up..she just thought it was a joint loan agreement with her husband which made sense as it reduced their monthly outgoings.

    The only reason it has come to light now is that she moaned to me one day that she would be in debt until her late 70's (she's in her late thirties now) and then explained her circumstances above and showed me the loan agreement.

    Does she need a solicitor ? (bearing in mind money is tight)..it's giving her sleepless nights

    Would appreciate any advice / thank you

    • Post Points: 20