Unethical lending

Ames

I've just been having a look around and something's struck me.

A couple of years ago I took out a loan with egg. The idea was to pay off an existing loan and buy furniture (I'd moved into an unfurnished flat).

I then had the bright idea to pay off a credit card, and only pay off three quarters of the existing loan. The bank wouldn't accept it, they said they could only take the full amount or nothing. I was left paying the two loans, and rent because housing benefit took a year to sort out. The money soon disappeared in repayments.

As soon as I realised the situation (ie, within weeks), I contacted egg to try and extend the loan for the money I'd paid off the credit card. They told me that as I'm on benefits the loan shouldn't have been approved in the first place so they couldn't help.

I'm mentally ill, manic depression, and in fact at around the same time as the loan was taken out I had to leave university because of a suicide attempt.

Is there anything I can do from the angle that it's a debt I shouldn't have been able to get in the first place?

Ames

oakdale_minx

Hi there Ames

When you applied for the second loan with Egg what did you tell the bank regarding your income?

I don't really know much about unethical lending I'm afraid, but I doubt the bank would do anything if you managed to pass their lending criteria at the time.

Ames

I told them that I was on benefits and a student loan.

When I phoned back when things went wrong, they said that whoever approved the loan shouldn't have done as they only lend to people in work. That's why when I was reading some other threads on here something clicked in my mind, if I didn't meet their criteria for a loan then maybe I can do something, at least lower the repayments or freeze the interest or something. Probably just clutching at straws though.

msmicawber

Maybe you should speak to the CAB, Ames, and see if they can offer any advice.

leon103

Welcome.

How did you get your first loan?

How long after taking your first loan did you realise you couldn't pay your first loan?

You usually can cancel the agreement within 28 days

Ames

The first loan I got because it was with the bank I've been with for years and my benefits were easily enough to cover it. Also, I was living with my dad at the time so had less outgoings.

The problem was never paying the first loan, it was paying both of them together. I didn't realise that I couldn't pay off part of the first loan until I'd already spent some of the money from the second loan on clearing a credit card.

I took the second loan out about a year after the first one.

james32_uk

No harm in trying I suppose but I'm sure legally companies can lend to anyone they like. The only chance would be if you were to claim you were not of sound mind, which is of course very difficult to prove.

Speak to CAB.

Kevicho

I think we should probably consider unethical borrowing.

Its ok blaming the banks for trying to make a profit, which to be honest is wrong, but lots of people on here recently have been moaning about repaying money back they have borrowed.

Did they think the could just borrow and not pay back?

I think this is a serious issue banks should be made more accountable, but again so should the people who borrow the money.