Newbie here in need of advice please - Mis sold bank loan??

celticsoul_2

Hi all

I hope that I am posting in the right place, apologies if not.

Around two years ago my bank sold me a loan after an appointment to extend my overdraft, to help pay off credit card debt, I paid off one card, Lloyds of course, but hung on to the rest as I had just been signed off sick with a bad back. When they sold this to me I also accepted an appointment to see their mortgage advisor as my mortgage was due for renewal with a different organisation. The advisor told me that I would definitely be accepted for a mortgage and that they would add the loan onto my mortgage, as it was obvious that the loan they sold me I would not be able to afford. Anyway, I got my mortgage with them, even although I was off sick on SSP with a bad back, but they couldn't lend the money on top to cover the loan of £17500.00. I also was sold a PPI for my loan at a whopping £97 pcm, which I was also told that I would be allowed to cancel when the loan was paid off with my new mortgage despite being tied in for 12 months. I ended up off sick for 10 months and no salary for 11 months. At this point all my debts were unacheivable to pay and I entered into agreements to pay minimal amounts to all of my debtors, although Lloyds have vigorously pursued me for this as they believe now that I am working again that I should be paying more to them, however this is just not possible, the loan is secured on my mortgage and I am terrified that they will take the roof from over my head. I still owe Lloyds thousands towards this debt but feel that i was mis sold both the loan and the PPI.

Any advice would be very gratefully welcomed.

Thank you
Ali

dunstonh

Cant see how you were mis-sold the debt

1 - you already had the debt which you had built up through your own spending. Bank is not responsible for your inability to control your finances.
2 - they were refinancing short term expensive debt into long term cheap debt to make it easier for you on the monthly commitments.

magpiecottage

I do not see that the loan was missold.

On the other hand, if you were receiving Statutory Sick Pay at the time then the PPI seems difficult to justify as you were not in a position to claim.

roonaldo

So you had debts, consolidated them into a loan. Then you took a mortgage which didnt pay off the loan? You say the loans being mis-sold as you couldnt afford it, but tighter measures are in place for mortgage affordability so it would have been affordable. The PPI which would of been a monthly PPI 2 years ago could have been cancelled at anytime if you couldnt afford it.

I'm not sure how you got the mortgage being on SSP, if that had showed on your payslips your mortgage would have surely been declined (2 years ago the banks were keen to decline mortgage applications). If there were any doubts over affordability again it would have been declined.

I dont think your recollection of events is correct.

magpiecottage

roonaldo wrote: »

I dont think your recollection of events is correct.

I agree - I would want to see evidence that the OP was in receipt of SSP at the time the policy was taken out if before I upheld the complaint.

celticsoul_2

Thank you for all of your comments, I take them fully on board. I guess what I am saying is that the loan was going to cost me more in monthly payments than what I was currently paying for credit cards. I was assured that I would be able to add the loan onto my mortgage and subsequently would be able to pay the loan of in full. I did tell the mortgage advisor that I was off sick, but we used my most recent bank and pay statements, as I had only just gone off sick a week or so beforehand. I believe there was a positive presumption on both sides that my term of sickness would not be long lasting. I am not questioning being mis sold the mortgage, only the loan, becuase I know that it was sold it on the premis that I would be able to pay it off with mortgage from them. I am unsure now about the PPI, but that is not the main issue, the loan is.

Many thanks for reading
celticsoul