LLoyds irresponsible lending

jason1231972

Thea wrote: »

To Jason- i understand that its not necessarily the amount you borrow, but he does not save anything, that £1000 gets spent as soon as he gets paid. That is why his mother withdraws some of his money and makes sure his bills are paid and he buys food. There were some difficulties before where his council tax and rent were not been paid.

Yeah I see what you mean, but would bank staff have been aware that his rent, etc. were going unpaid (bearing in mind that they do credit checks, so the likelihood of arrears being so severe that they were reported to credit reference agencies is slim)? Would they have been aware of the help he gets from his mum? Because if it's a hush-hush agreement, his mum withdrawing cash on his own bank card to pay his bills, then these cash transactions would have looked pretty innocent and legit to the untrained eye. The bank aren't there to tell him how to spend his money, they're just there to do a basic assessment of how well he's keeping his head above water - on paper, at least.

If staff knew he required help from a third party, then they could have acted irresponsibily. But it doesn't sound like they knew? It sounds as though your friend has acted irresponsibily, or even employed deception (though I do understand that if there are real issues, he's not necessarily to blame). The point is that in the absence of any knowledge to suggest otherwise, the bank appear to have acted in good faith. Of course they collect commision, etc., and are out for what they can get, but there are certain parameters in which they can work - which seem to have been adhered to.

Yes he made the choice to borrow this money but with no way of paying it back. Would hate to see him end up with a ccj or something. Its a sad state and i just hope its sorted out soon.

Not ideal, but neither is it really the end of the world. In reality, he should be able to make an amicable agreement with the bank, stopping short of collections/court action. Could he go to bank (with our without mum) and sit down with someone to work out a rescue plan?

27col

pvt wrote: »

I'm not sure why. Would you be happy if social services took at look at your medical records because you took out a payday loan for example? At 4,000%+ interest that would be a far greater indication of impaired mental capacity.

My thoughts exactly.
In my view you need to be at least a bit simple to even consider taking out a loan at 4000% interest.

Thea

He has been to the bank and they are the ones who suggested social services should get involved. They do realise now he cannot repay it so hopefully some sort of arrangement can be reached. I think it is coming to the time when he needs extra help like supported living or something. It sounds like he has many other problems but i dont know all the details. His mum is 84 and finding it difficult to support him.

Again thanks for the replies.