Bank Loan and Responsible Lending Code

vickie82

Just wondered if anybody could advise me about a bank loan i took out in 2005. The first loan was for £5,000, and i intended to buy a car with it on completion of my test. i was sold PPI, which was "lent" to me, added to the 5,000, and they then charged interest on the whole amount. Also, i failed my driving test, and ending up spending the money each month when my wages ran out, (in my defence i was very young, naive, and obviously stupid) after about 6 months the money ran out, and the enormity of what i had done hit me. I just wanted the money back, so i applied for another loan. This was rejected when it went to the underwriters, as they could plainly see my last loan has merely supplemented my income, and as responsible lenders they did not want to give me the loan. Then, a few weeks later, i received a call from the bank,asking if i would like to take out another loan with them. I explained my last application had been rejected, and the lady i spoke to told me she was sure they could do something about that. She asked me what the loan was for and for how long i would like it. I cant remember what reason i gave, but she said i couldnt apply for that as it had to paid back within a year, and i wanted it over 5 years. She then said "but didnt you say you needed a holiday" basically changing my reason, and putting words in my mouth about what reason i should put. i agreed and said yes. she then said she would process the paperwork and call back. she called back, another two times, each time saying we couldnt use the reason given, ie timeframe of paying it back, holiday had to be paid back in a year, home improvements wasnt allowed because i still lived with my parents in privately rented accommodation,ect. We then settled on a reason, i cant remember what it was in the end. The problem i have now is that i do not feel this was responsible lending, she could plainly see i should not of been given the loan, and has basically lied on the loan application. i know i went along with it, but as i have already said i was young and foolish, i was only 22, and when i applied for the loan i had a lot of problems in my life. but is this not what the responsible lending code is for? to protect people from debt they cannot afford? i would now be clear of this debt if i hadnt taken out the second loan. i was also told if i didnt opt in to the ppi i would either be refused the loan, or charged a higher interest rate. i paid the ppi until maybe 2007, then i changed to an outside provider and swapped my payments of £50.00 per month for £5.00. I would like to know who i would complain to first if its possible about the responsible lending, i would like to ask for copies of the phone conversations between myself and the lady from the bank, but im worried if i ask the bank myself, they may just say they do not have them and try to cover their tracks. i would prefer to use a third party that the have to play fair with. any help on this matter would be greatly appreciated. thank you.

Emmzi

22 is more than old enough to enter into a contract, unless you are telling us you were mentally incapacitated.

You have also knowingly and willingly committed fraud on the application reason.

I'd be amazed if there were phone transcripts. Even if there were you're only getting yourself in trouble.

vickie82

Yes as i have said i was very stupid, but i was actually suffering from depression after a miscarriage, spending apparently made me happy. Also i was not the one who was supposed to abide by the banking code. I am not the only one who has committed fraud. My reason was because of mental health issues, which as i said the underwriters could clearly see i had had a problem with spending. My reason was not due to the amount of monthly commission i would be receiving as was the lady who decided to lend irresponsibly.

Macca83_2

Forget the phone calls. There's not a chance that the bank Will still hold those recordings.
As to whether or not you were mis-sold the loan. Yes you possibly were, but... It takes two to tango and i feel you need to take responsibility.

Probably not what you wanted to hear.

ILW

Did you inform the lender you were suffering from depression when you applied?

Emmzi

so what you would have had to do was declare a problem as soon as you noticed it. You have had the loan for what, 7 years or so?

Never a glimmer of doubt until today?

You have no chance, honest. Best just buckle down. PPI, maybe worrth a conversation. Loan, no.

vickie82

I do take full responsibility for taking out the loan. But as i said the banking code is there to stop individuals like me. and in this instance it was not adhered to in the slightest. but thank you for the reply.

vickie82

No i didnt inform them i was suffering from depression, and obviously i knew what i was doing was wrong, and have known all along, but i was not thinking practically at the time.

DCFC79

vickie82 wrote: »

I do take full responsibility for taking out the loan. But as i said the banking code is there to stop individuals like me. and in this instance it was not adhered to in the slightest. but thank you for the reply.

Why did you not say something to the bank at an earlier point ?

vickie82

because i was just happy to have the money!

Emmzi

vickie82 wrote: »

I do take full responsibility for taking out the loan. But as i said the banking code is there to stop individuals like me. and in this instance it was not adhered to in the slightest. but thank you for the reply.

No, it is there for the mentally incapacitated. That is not you!