Co-Op bank

essex_jim_2

Just wanted to pass a bit of information on about this bank. You can make your own judgements as to whether or not they are in the wrong but I would appreciate due to the sensitivity of this that any negative comments are kept away.

A very good friend of mine committed suicide last week, I (and his parents) have since found out he had debts exceeding £20,000. This man has never had a job, this is due to him suffering from a mental illness and whilst he was a very lovely, thoughful and caring man he struggled with life massively and felt there was no other way to go through it than to take his own life.

What has angered me, is the fact that someone on benefits can be allowed to get into this amount of debt in the first place. Payday loans were plentiful in his debts. They don't care if you have a job or not those guys do they? As long as they have you by the balls is all that matters.

But it was the Co-Op bank who shocked me the most. He had previously a loan with them and was struggling to meet repayments so his mother marched him into the bank to find out how much he owed. £3k was left, so she paid it off. He thought the amount would be alot less and caused a scene in the branch accusing the bank of conspiring against him (please be aware severe paranoia was one of the many symptoms he suffered, I've no doubt for a second this was the true amount he owed). The advisor threatened to call security before he stormed out, leaving the mother in the branch.

The mother paid the remaining debt and pleaded with the branch that due to his mental state they should never lend to him again.

A few months later, my friend went back into the branch and managed to get a loan for £7k. This was late last year. I don't know how the flipping hell someone without a job can get a loan that size, and they took no notice of the mothers plea to not lend to him again.

He again couldn't cope with the debt, found himself in a whirlwind of debt and along with other contributing factors he is now in a coffin awaiting his funeral in a few days after taking his own life.

I just hope one day banks have a social consicence they really bloody need and put profits to one side. A big NO was all that was required when he came in for that 2nd loan, the signs were all there if they'd bothered to look.

Co-Ops slogan 'Good with money'.

They haven't got a clue.

Pathetic.

HappyMJ

Sorry about your friend but the lending companies do not have to listen to anyone else in considering a loan. As his previous loan was paid off then his credit looks good and he can obtain another loan.

Payday loan companies exist to help people out when they need money the most. That time is most likely when they are on benefits and are waiting on the next benefit payment to come as it may be late due to a missed appointment or delayed paperwork and they have no money for food...therefore the payday loan. People with money would not generally use a payday loan company.

essex_jim_2

I just find the amount loaned by the Co-Op staggering, I earn 35k plus and have been in full time employment since 16 and I'm not even sure I could get a loan for much more than that.

Apples2

A sorry tale, you have my sympathies but why, after the first time, was he allowed to maintain control of his finances?

All of this control should have been withdrawn from him, for his own good and maybe a different outcome.

essex_jim_2

I'm sure he isn't the only person to have had a debt paid off from a family member only to keep control of his finances Apples2.

My point is how on earth would this company lend that kind of figure to someone on benefits?

noh

essex_jim wrote: »

I'm sure he isn't the only person to have had a debt paid off from a family member only to keep control of his finances Apples2.

My point is how on earth would this company lend that kind of figure to someone on benefits?

It seems unlikely they would lend such an amount to someone on benefits.
Were the facts stated on the loan application or did he misrepresent his income and employment status?

essex_jim_2

noh wrote: »

It seems unlikely they would lend such an amount to someone on benefits.
Were the facts stated on the loan application or did he misrepresent his income and employment status?

I don't know, neither myself nor his mother knew about the 2nd loan until after his death.

essex_jim_2

The mother of my friend has been in touch with the local radio station for our county and they were very interested in this story and are beginning a piece on it. Regardless of what banks rules are about lending IMO they are wrong in situations like this, if my friend lied then they need to check for certain (bank statements, wage slips, it cant be rocket science).

CLAPTON

essex_jim wrote: »

The mother of my friend has been in touch with the local radio station for our county and they were very interested in this story and are beginning a piece on it. Regardless of what banks rules are about lending IMO they are wrong in situations like this, if my friend lied then they need to check for certain (bank statements, wage slips, it cant be rocket science).

I sorry about the death of your friend

are you suggesting that each and every credit application (loan, credit card, store card, HP, OD etc) should be supported by bank statements and wage slips even if the person has previously paid their debts properly?

personally I think it a good idea although many people would find it burdensome

Valli

That really concerns me - they do 'throw' money at some people.

under the circumstances (if it were me) I would be writing a formal complaint to the Co-op about this and if it were not dealt with appropriately complaining to the banking ombudsman- totally irresponsible lending IMO
Why would a lender NOT want proof of income before lending?

and I bank with the co-op:o:(

I am so sorry for your loss

iolanthe07

What a terrible thing to happen. Strange, too, in that the Co-op have a generally good reputation on this site.