Is this even legal?

Mr_Maximus

Hello Everyone

Need help on this little matter.

Got a call from my bank about an 2 hours ago. Obviously a call centre type chappy but none the less he said that he wanted to check on my progress of debt, how I got into it and blah blah blah. Strangely enough he then went into how I fall into a 2% bracket of people at said bank who are eligable to have the amount that I owe cut down. So I asked for him to explain what was on offer. Now he said that he could take the current cost of my loan with them of around £12k and let me make a one of payment to clear the debt of £5,500!!! So I said to him that if I am in such a state with my finances how am I going to get £5,500 to pay off the bank.......... erm take a loan out he said! I almost fell about laughing. I am sure what he has just done is against FSA rulings and numerous other legislation that governs lenders however I shall let him off. He did say that the offer was only for 28 days only but I must commit to the figure but after saying no for the forth time I think he got the message.

Can they ask you to take out a loan to pay of their debt?

Let me know.

Maximus

Mr_Maximus

Oh forgot to add that he said that delaying paying back such an amount could affect my credit rating. I know my credit rating. It is rated in minus scoring so I won't get credit for a tin of beans!

frazzmunch

as far as i am aware they can suggest it...and borrowing money from family / friends etc....however, you are under no obligation whatsover to take them up on their 'helpful' suggestions...;)

lynzpower

You are completely right. It is not legal for a bankto suggest you take out other debts to pay off debts.

PLease phone the FSA tomorrow and make sure you complain.

Mr_Maximus

Thanks Lynzpower.

Just makes me wonder what the hell they are playing at. I know it ain't on this subject but my friend called today to tell me that his brother is going bankrupt. Maybe I should suggest talking with my bank as they half the amount whilst getting you to take out another debt.

I will get on to FSA tomorrow to see what they have to say.

Maximus

Deep_In_Debt

I had similar with one of my credit card debts. The guy told me to either re-mortgage my property or get a loan! I think it's in the OFT debt collection guidelines that they should not encourge people to take out further borrowing. They don't like it when you spout that back at them!