Bad Lending, Loan

betmunch

Clearly a wind up. Not even in this day and age is anyone THAT stupid!

spadoosh

£2500 business start up loan, well that just about covers a person wages for 2 months, you really didnt think that one through. Let me guess... cupcake stand?!? Or butty wagon!?

Sorry op, next time ask for more!

Paynefull

Thanks to the folks that replied with sensible answers, to the others there are enough people out there that are in debt and could benefit from decent advice instead of criticism and rudeness it would certainly put people off using this site !!!!!

zxspeccy

Unfortunately it is “your” business that failed and it is “your” debt that needs to be repaid. If you are running your own business and receive help in the form of a business start-up loan, you should have really kept copies of the paperwork. I would say it is unlikely that you would have had PPI on this type of borrowing. If anything you would have had “Keyman” insurance, and if you did it would not cover a business failing (unless something specifically happened to you to cause the failure).

Although it is unusual for a bank to agree a start up loan without the need of cashflow forecasts and business plans, it does happen. The loan you require is relatively small and with a good credit file and if hold you personal accounts with the bank then there is no reason why they shouldn't lend. It is unlikely to be deemed “irresponsible” lending by the bank, and it would be very difficult for you to prove otherwise.

Rupert_Bear

Paynefull wrote: »

Thanks to the folks that replied with sensible answers, to the others there are enough people out there that are in debt and could benefit from decent advice instead of criticism and rudeness it would certainly put people off using this site !!!!!

I know just how you feel!

ineed

Paynefull wrote: »

Hi can somebody advise what I can do here please, I had a loan from RBS of £2500 for the start up of a business idea i had, i made an appointment with the bank manager, went and saw him with no business plan or anything to show how the business would work and i got the loan this was just at the begining of the recession a couple of years ago. The business failed and i was struggling with repayments, now its been passed to debt collectors and am being offered a settlemet fee, but cant afford that either can I fight this as it was wrong to have been offered the loan ? i know i had it and spent it but i thought i could get the business going but unfortunatly not. Im no sure if i had PPI on it either as i have no paperwork.

Any advise would be great

You went and asked for a loan, noone forced you into it. As you say you had the money and spent it, hardly the banks fault your business failed is it. If your struggling badly I suggest you contact your local CAB or a debt charity like CCC or pay plan, get some advice on making reduced payments that you can afford.

27col

Presumably the folks whose replies with sensible answers were those that you agreed with. The rest of us, who said something that you did not like are absolute swine. Did you seriously expect someone to agree with you about it being the fault of the bank and no fault of your own.

RuthnJasper

Paynefull. I am NOT, I sincerely promise, having a go at you. Honestly. But you REALLY need to take responsibility for your own actions.

YOU took out the loan for YOUR business idea (which may or may not have been brilliant. Perhaps only your timing was wrong.). It failed. Sadly, it failed with the BANK'S (not your) money behind it. You now need to give them their money back.

I am sorry. This is the truth. Alas, it does seem that majority of those who have taken their time and trouble to reply to your post on here HAVE offered relevant feedback.

I am sorry for the trouble in which you have found yourself - and I wish you better fortune in the future.

Wutang_2

Rupert_Bear wrote: »

I know just how you feel!

So you also would like to blame a bank for lending you money despite having absolutely no business plan at all (yeah right), things not going to plan and then coming on here crying about it too?

What was your business? How much was your business loan? Which bank? and is it now a CCJ or just default? And how much is the settlement offer?

Tixy

As has been established - you need to repay the loan. If you cannot raise a lump sum for a reduced settlement then you will need to arrange to repay it monthly.
Work out how much you can afford a month and write to the debt collectors setting out how much you can currently afford each month - and then make sure you start paying it.

If you want copies of your paperwork you need to write a subject access request - which costs £10 and supplies you with copies of all information on file including the paperwork.
If it had been a personal loan (which is possible for that amount - and not related to your proposed business at all) then you could have written with a consumer credit agreement request - for £1.