Help, bank gave OAP a loan she can't afford without doing a credit check
Comments
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Hi,
I need to help an elderly friend who is in serious trouble now thanks to Barclay giving her loans she can't afford.
My friend has basic pension and benefits so she is having very limited funds. She doesn't have any financial sense and doesn't speak English well.
She had an overdraft with Barclays which she found a strain and wanted to get rid off, so she tought a loan would be better to get rid of it. A loan for a higher sum than she needed for the overdraft was given without a credit check done, she would have failed as she has very little credit history in this country and only basic state pension.
She then got in to a circle of debt and all of a sudden she was talked into extending the exsisting loan by the same person.
Then I found out and said to her that she should make a complaint to the bank as they should never have given her the loan in the first place.
So she did complain, that Barclay branch asked her; "Was it **?" which it was and they then said; "Yes that is what he does"
But instead of making a formal compliant the let her spread out the loan over 10 years instead to make the monthly outgoings smaller.
On Saturday I am going to travel over to her to try and sort some of this mess out. But this is not my area of expertise so my question to you guys is;
Is there anyway I can raise a complaint with Barclays to get them to cancel the loan as it was completely missold or at least some way I can get them to cancel some of the loan. Or can I raise the issue with the finacial ombudsman?
Thank you for your help in advance.
I assume your friend is entitled to pension credit which means she has at least £148 a week.
She will also be getting housing benefit and council tax benefits.
If she is not receiving these benefits, please help her claim what she is entitled too.
This is not what I would call limited funds - it is much more than many families have to live on.
I recommend you teach her how to manage her money, and how to pay the loan back.
How much is the loan for and how much are the repayments?
Is her rent very expensive - should she consider moving?
Perhaps post an SOA on the Debt free wannabee board and people will be able to help.Weight loss challenge, lose 15lb in 6 weeks before Christmas.0 -
If you want to check what constitutes mis-selling:
https://www.moneyadviceservice.org.uk/en/articles/financial-mis-selling-what-to-do-if-you-think-its-affected-you
Lin
You can tell a lot about a woman by her hands..........for instance, if they are placed around your throat, she's probably slightly upset.
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Customer: I'm struggling to pay this overdraft
Bank: No worries, we could give you a loan for X with repayments each month at Y so you can pay it off with some funds remaining for purchases. Can you afford that monthly amount?
Customer: Yes of course!
*Customer spends money happily*
Customer: Oh darn I actually can't afford to pay it back, it's the banks fault...0 -
I do not agree with the majority of the comments posted on this thread.
Clearly this lady is vulnerable, she was struggling with her overdraft and english is not her first language.
To suggest the lady now learns English and learns to manager her finances does not excuse the bank from making the situation worse
I am glad none of you actually work in this business as we'd be in more trouble than the professionals I already have the undiluted pleasure of dealing with on a daily basis.
They are under a duty to act in her best interests and I cannot see how someone struggling with an overdraft would be the ideal candidate for a loan.
Regardless of whether she speaks English or not the bank should have taken more care when deciding whats best for her.
Banks earn money by lending money, perhaps that is why the bank clerk suggested a loan.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Would you prefer the bank saw her evicted from her home?I do not agree with the majority of the comments posted on this thread.
Clearly this lady is vulnerable, she was struggling with her overdraft and english is not her first language.
To suggest the lady now learns English and learns to manager her finances does not excuse the bank from making the situation worse
I am glad none of you actually work in this business as we'd be in more trouble than the professionals I already have the undiluted pleasure of dealing with on a daily basis.
They are under a duty to act in her best interests and I cannot see how someone struggling with an overdraft would be the ideal candidate for a loan.
Regardless of whether she speaks English or not the bank should have taken more care when deciding whats best for her.
Banks earn money by lending money, perhaps that is why the bank clerk suggested a loan.0 -
It seems to be reasonably standard practise to convert an overdraft to a loan if the customer is either struggling or wishes to pay it back.
HBS x"I believe in ordinary acts of bravery, in the courage that drives one person to stand up for another."
"It's easy to know what you're against, quite another to know what you're for."
#Bremainer0 -
It is a reasonably standard process for someone who is temporarily on hard times and likely to return to normal income, but this wasn't her situation.
She should have been referred to CAB or something similar for help and guidance not sitting in front of the carefree AJ who spent the bonus money now anyway and doesn't care.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
They are under a duty to act in her best interests
What sort of a Utopia do you live in?
I don't think you will find ~any~ bank that would accept that they have to act in the best interests of their customers. The fact is that they are there to make a profit, and the customer's best interests will always be secondary to that.
Let me ask you - presumably as a broker you run your own business? Do you always act in the best interests of every one of your customers, even if it means less profit (or possibly no profit) for your company?0 -
unless she is mentally incapacitated, which doesn't seem to be the case, it'd be reasonable of her to say "I am bad with numbers, let me check this with a friend and get back to you."
Is she chose not to.... how is it the banks fault? She is of sound mind and has free will!2021 GC £1365.71/ £24000 -
What sort of a Utopia do you live in?
I don't think you will find ~any~ bank that would accept that they have to act in the best interests of their customers. The fact is that they are there to make a profit, and the customer's best interests will always be secondary to that.
Let me ask you - presumably as a broker you run your own business? Do you always act in the best interests of every one of your customers, even if it means less profit (or possibly no profit) for your company?
I've heard lots of words to describe financial services, utopia isn't one of them.
Yes we are required ONLY to act in your interest - it's called being FIT AND PROPER - in the regulatory sense at least.
Whether you feel the organisation has a duty or not may be the point you're making however the duty is still there.
You are confusing a salesman who sells you windows with the man who advises his clients each day on whats best for them, if our personal profit was the goal you would all be in far, far more trouble than at present of this I assure you.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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