Help - Urgent Advice needed.

Brotybob

I'm new to this forum and just need some advice please.

Having run up £25k in credit card debt our bank Lloyds TSB called me in when they realised we were having difficulty making payments. Their solution was to offer to convert the debt in to a term loan. Despite the debt being split over two cards (mine and my spouse) they only interviewed me. I accepted the banks offer and agreed to close my credit card account. The bank did not close my spouses credit card account and now it's back up at the limit of £10k. Looking back I feel quite angry because the loan is in my name only whereas the debt was due by both of us. I really don't feel the bank acted responsibly when they consolidated all the debt into my name and left my spouse to carry on as before. I was not asked to seek independent advice and my spouse was never interviewed. Can anyone tell me if this situation might merit any kind of complaint as clearly we were in trouble financially and the bank has been completely irresponsible in dealing with this problem in this way.

Tixy

It is quite possible to transfer debt from another person to your name (eg if you had BT'd your partners credit card debt on to a new credit card in your name). It appears you have done the equivalent and become legally liable for the whole debt.

Whilst you may not feel the bank acted responsibly do you think your spouse acted responsibly by spending a further £10k?

Turning a credit card debt into a loan is a common recommendation for the bank and whilst not necessarily recommended on here I would imagine they would easily be able to justify why they suggested this. That you agreed to take over your spouse's debt was your decision rather than the banks.

I suspect you won't get far by making a complaint. That said if you cannot keep up with repayments and need to default on the accounts you may be able to use what happened as an extra persuasive factor in getting them to agree to accepting lower payments (although you should only do this if you have no other choice as defaulting on debts has a big impact on your credit report).

welshmoneylover

Brotybob wrote: »

Can anyone tell me if this situation might merit any kind of complaint as clearly we were in trouble financially and the bank has been completely irresponsible in dealing with this problem in this way.

Do you not think that you are the one(s) who have been irresponsible by spending money you quite simply didn't have?

What are you after, advice or compensation?

Clive_Woody

Brotybob wrote: »

I'm new to this forum and just need some advice please.

Having run up £25k in credit card debt our bank Lloyds TSB called me in when they realised we were having difficulty making payments. Their solution was to offer to convert the debt in to a term loan. Despite the debt being split over two cards (mine and my spouse) they only interviewed me. I accepted the banks offer and agreed to close my credit card account. The bank did not close my spouses credit card account and now it's back up at the limit of £10k. Looking back I feel quite angry because the loan is in my name only whereas the debt was due by both of us. I really don't feel the bank acted responsibly when they consolidated all the debt into my name and left my spouse to carry on as before. I was not asked to seek independent advice and my spouse was never interviewed. Can anyone tell me if this situation might merit any kind of complaint as clearly we were in trouble financially and the bank has been completely irresponsible in dealing with this problem in this way.

If you have any cash left can I suggest you invest in a pair of scissors and cut up your credit cards, both you and your spouse and stop trying to blame others for your irresponsible behaviour.

Sorry to sound harsh but you agreed to the loan in your name and you must have been aware your spouse still had a credit card and was living well beyond her means.

CHR15

Brotybob wrote: »

The bank did not close my spouses credit card account and now it's back up at the limit of £10k.

There lies the problem, you got yourself partially out of a hole, then between you, you dug another one next to it. You both have to take this on the chin.

This is why everyone advises against consolidation loans, for exactly what you two have done, cleared a card out, then piled it all back on again leaving you in an even worse position.

BLT_2

Brotybob wrote: »

I'm new to this forum and just need some advice please.

Having run up £25k in credit card debt our bank Lloyds TSB called me in when they realised we were having difficulty making payments. Their solution was to offer to convert the debt in to a term loan. Despite the debt being split over two cards (mine and my spouse) they only interviewed me. I accepted the banks offer and agreed to close my credit card account. The bank did not close my spouses credit card account and now it's back up at the limit of £10k. Looking back I feel quite angry because the loan is in my name only whereas the debt was due by both of us. I really don't feel the bank acted responsibly when they consolidated all the debt into my name and left my spouse to carry on as before. I was not asked to seek independent advice and my spouse was never interviewed. Can anyone tell me if this situation might merit any kind of complaint as clearly we were in trouble financially and the bank has been completely irresponsible in dealing with this problem in this way.

Yep there is definitely cause for complaint, by the bank. They offered a loan to help you out of the situation you had placed yourself in, and then you went straight back in and spent even more.

Damn those banks for offering you a deal when they knew you were in financial difficulty

bengal-stripe

Brotybob wrote: »

.........the bank has been completely irresponsible in dealing with this problem in this way.

And I thought your spouse was the irresponsible one! - Silly me, how could I think that?