Irresponsible Lending. Do I have a case?

hoggiebear

Hi all

This is my first ever post on this site and I was just looking for a bit of advice.

I have an Egg credit card, soon to be Barclaycard, with a credit limit of £4,500 - outstanding balance £4250. About 12 months ago I asked them to close the account to prevent me from using the facility as I wanted to pay it off. They sent me a secure message advising me that due to system restrictions they could not close the account or put any hold on my card to prevent me from using it.

I have advised them on several occasions that I am struggling to cope financially and have also requested they reduce the overall interest rate to help me to pay it off. They have refused to help me.

Luckily I was offered substantial overtime at work and managed to make enough money to pay off the debt in full. However, I sent the payment and before it even credited the account my circumstances changed drastically.

I lost my eight year old daughter just before Christmas last year and subsequently had to pay for extremely unexpected funeral costs. At the time I wasn't thinking straight and paid for the funeral on my credit card. As I am sure you can appreciate, the last year has been a bit of a blur and my finances have been at the back of my mind.

However, I am now able to focus on life again and need help to rebuild my life.

I have been advised that Egg could be held responsible for the outstanding balance on my account under irresponsible lending as I had advised them on my situation and they did nothing to help.

I would really appreciate any advice or opinions in this matter.

thanks

MrsTinks

Firstly I'm deeply sorry to hear about your daughter - I can't imagine the pain of loosing a child and I won't insult you by trying.

Purely unemotionally here... WHY exactly are you under the belief that Egg should be held responsible for your outstanding balance? Why were they acting irresponsibly? Who told you they could be held in any way liable?
You requested they lower the APR - they are under no obligation to do so.
You advised them you were struggling financially, but you didn't have any mental health issues or diminished resposibility under law that they were aware of did they?
I'm sorry but I can't see where the argument that they were irresposible would be based but maybe someone else can help you.

hoggiebear

I spoke with a friend who works as a complaint handler for a large financial institution. She also deals directly with the financial ombudsman.

She advised that as I had case based on the following:

1) I asked them to close/block the account to prevent me from using it further and they refused to do it due to system restrictions.
2) I advised them of my financial difficulties.

redpete

I'm also sorry to hear that you've gone through such a difficult situation

But - presumably you were making the minimum payments before so the CC company really had no reason to reduce the interest. Then you paid it off and justified their decision.

Difficult to think about but without the CC what would you have done about the funeral costs?

hoggiebear

I'm 100% certain that friends and family would have helped had I not been able to pay the funeral costs but at the time I wasn't in the frame of mind to consider options. I was in such a daze and just wanted it to be over that I never really considered the financial implications of such a situation.

rising_from_the_ashes

I too am very sorry to hear of your loss ... I can't even imagine going through something like that.

However, I'm also afraid I don't see how B/c can be held responsible - although you asked for them to close the account to stop you using it, and they said no - at that point you could have cut up the card if you didn't trust yourself not to use it.

stclair

hoggiebear wrote: »

I spoke with a friend who works as a complaint handler for a large financial institution. She also deals directly with the financial ombudsman.

She advised that as I had case based on the following:

1) I asked them to close/block the account to prevent me from using it further and they refused to do it due to system restrictions.
2) I advised them of my financial difficulties.

Maybe you could ask your friend to assist with your query.

Personally I do not think you would have a case to be honest. However maybe you should contact your local CAB or the Money Advice Service for some advice.

http://www.citizensadvice.org.uk/

http://www.moneyadviceservice.org.uk/contact.aspx

thegoodman

I too am very sorry to hear of your loss.
However you would be better off to get the advice from your friend since she deals with the ombudsman and also work as a complaint handler. She will have a lot more understanding about your case and what steps to take. She also know you.

Ask her for what steps to take. Her advice might be better for you than the websites above as she is already working with this kind of places.

red_scorpian

Hi Hoggiebear,
Didnt want to read and run. Big big hugs and I'm so sorry to hear of your loss. As the other op have said citizens advice would be your first step or as Goodman says speak to your friend again .Take care xx

immoral_angeluk

So sorry for your loss.

I don't think you have a case of irresponsible lending but there's no harm in making a complaint and seeing where it gets you.

However, dependant on your mental state after the death of your child, you may want to see if you may be able to negotiate a write off based on diminished mental capacity, which sounds extreme, BUT no doubt the shock of your loss and the grief/depression etc which would have followed could be argued that you were not in a fit mental state to be able to reasonably manage your finances at the time?

Again, purely discretionary on lender's part, but they're not totally devoid of understanding. You could compile a complaint arguing both cases on what you believe to be irresponsible on their part, as well as a write off because of your mental state at the time.

redpete

hoggiebear wrote: »

I'm 100% certain that friends and family would have helped had I not been able to pay the funeral costs ...

How about seeing if they are able to help out with the debts that have built up as a result of the funeral costs?