Issued Credit Cards whilst on benefiti

NickX

carlita wrote: »

unless someone from the bank came round and forced them at gun point to spend the money surely they are the ones to blame?

It is possible that they were miss-sold the products by the Bank.

There have been cases in the media where commission-paid bank staff have sold loans to people who really couldn't afford them. LLoyds TSB were accused of this on BBC Watchdog.

OK, no gun was held to their head, but if these people are not financially savvy (and the OP has described them as "dim") then a friendly member of bank staff suggesting that a Credit Card was just what they needed, then I can see how it may have happened.

NickX

M_Wootton wrote: »

if the bank did issue a loan without asking employment details would they be able to do anything about this.

As discussed in detail on these boards, the CCA (Consumer Credit Agreement) has to meet certain standards and there is currently a drive to prove some pre-2007 CCAs as unenforceable because they do not meet all the requirements. It is an area of much debate, and a certain couple featured in the media managed to get £100k of debt written off in this way, but in turn incurred £100k of legal expenses.

In answer to your question I am not 100% sure whether they HAVE to ask about employment details during the application by law, but I suspect not. At the end of the day if the bank decided to lend to a tramp then that is their decision albeit a crazy one as the tramp will disappear into the sunset and never return the funds.

PROLIANT

The financial facilities were granted by the bank while they were claiming benefit, if the bank did not ask about employment status and income and/or where it comes from i.e. the DWP, then the bank is responsible to a certain extent, however if the couple gave false information regarding income on the application then they have committed fraud and can be prosecuted for providing material falsehood’s to the lender, if they are not adult enough to take responsibility for their actions or have some form of social or mental disorder then they need seek professional help maybe starting with their GP.

I am sorry if this is not the cure you were hoping for but the fact of the matter is somebody is to blame, possibly both parties if protocol was not followed.
I find it very hard to believe the bank did not query employment status and income as it is mandatory in all credit application you fill in...And I have filled in quite a few.

M_Wootton_2

PROLIANT wrote: »

The financial facilities were granted by the bank while they were claiming benefit, if the bank did not ask about employment status and income and/or where it comes from i.e. the DWP, then the bank is responsible to a certain extent, however if the couple gave false information regarding income on the application then they have committed fraud and can be prosecuted for providing material falsehood’s to the lender, if they are not adult enough to take responsibility for their actions or have some form of social or mental disorder then they need seek professional help maybe starting with their GP.

I am sorry if this is not the cure you were hoping for but the fact of the matter is somebody is to blame, possibly both parties if protocol was not followed.
I find it very hard to believe the bank did not query employment status and income as it is mandatory in all credit application you fill in...And I have filled in quite a few.

Proliant

Thank you for a unbiased well balanced response, I will be investigating this matter further and I will post any updates that may be of help for anyone else.

Once again many thanks.

Mike

dmg24

As cifpower mentioned earlier, being on benefits is not (and should not be) a bar to getting credit. If the couple are on benefits due to incapacity, their income could be anything up to £20K after tax, so considerably more than many in full time employment.

I would agree with those that have said that you need more information, and then to contact CAB if you still feel there is a case to be answered.

gomer

M_Wootton wrote: »

Hi

Friends of ours who are on benefits were issued a credit card 2 years ago, also they were granted a bank loan from whom they bank with. Surely this is not right, giving people money that they cannot afford to pay back, since then they are in financial crisis and feel suicidal as this is a major conflict witin their marriage. is there anything they can do to have these waived.

Are you for real? I am on benefits & have several credit cards but i don't spend what i know i can't pay back, i use them sensibly as a credit facility then pay in full each month so i don't get in debt. Why should i be allowed to spend the banks money on luxuries then expect them to 'waive' the repayments?

M_Wootton_2

gomer wrote: »

Are you for real? I am on benefits & have several credit cards but i don't spend what i know i can't pay back, i use them sensibly as a credit facility then pay in full each month so i don't get in debt. Why should i be allowed to spend the banks money on luxuries then expect them to 'waive' the repayments?

Well yes i am for real and just asking the question, i believe the definition of the word "question" is for people that do not know and they ask for help, hence why i have put a post on this forum.

M_Wootton_2

PROLIANT wrote: »

The financial facilities were granted by the bank while they were claiming benefit, if the bank did not ask about employment status and income and/or where it comes from i.e. the DWP, then the bank is responsible to a certain extent, however if the couple gave false information regarding income on the application then they have committed fraud and can be prosecuted for providing material falsehood’s to the lender, if they are not adult enough to take responsibility for their actions or have some form of social or mental disorder then they need seek professional help maybe starting with their GP.

I am sorry if this is not the cure you were hoping for but the fact of the matter is somebody is to blame, possibly both parties if protocol was not followed.
I find it very hard to believe the bank did not query employment status and income as it is mandatory in all credit application you fill in...And I have filled in quite a few.

I have since found out that they were 1500 pound overdrawn on their bank account and were approached instore as to having a loan for 2000 to clear their overdraft and have some spending money for themselves, she pointed out to the clerk that although she was working, the work in fact was voluntary and she did not recieve any payment for, this did not deter the bank from processing the application. so my question still stands is it possible for people on benefits to obtain bank loans.

NickX

M_Wootton wrote: »

so my question still stands is it possible for people on benefits to obtain bank loans.

From the evidence supplied by the posters on this thread it appears that the answer to this is YES.

gomer

M_Wootton wrote: »

Well yes i am for real and just asking the question, i believe the definition of the word "question" is for people that do not know and they ask for help, hence why i have put a post on this forum.

Did i not answer the question then? Thanks for your concern but i really don't need you to tell me what the definition of the word "question" is - perhaps you could explain that one to your friends so that they think to ask questions before agreeing to loans they can't afford.