Quick question before wife goes to the bank!

MargateSteve

My wife has received a copy of her agreement regarding an ongoing question over a loan refinancing situation with her bank.

Attached is an 'Internal Use Only' sheet, at the bottom of which it states ' Affordability Assessment Result - Fail'.

Can anyone explain what this means?

gingeralan

It probably means that they sent out some paperwork you weren't supposed to see. But if it is in relation to your account it probably means that they don't feel your income is sufficient to support the amount you wish to borrow.

MargateSteve

That is exactly how I read it. So if that is the case, why did they accept it. No money was put into my wife's account as a result of this 'extension'. My wife went in to reduce her overdraft 3 years ago and this is what she ended up with.

Can anyone confirm 100% that this is exactly what that wording means? If this is the case can we add irresponsible lending to mis-selling?

CLAPTON

You haven't given us the full facts.
Maybe they simply transferred one debt for another.
Maybe the first debt was being mishandled or she asked for 'help'.
Maybe they were very helpful.

Facts always make it easier to offer opinions.

MargateSteve

CLAPTON wrote: »

You haven't given us the full facts.
Maybe they simply transferred one debt for another.
Maybe the first debt was being mishandled or she asked for 'help'.
Maybe they were very helpful.

Facts always make it easier to offer opinions.

That is what we will find out today. We were not in any financial problems at the time so there was no need to refinance anything. The only financial movement we wanted at the time was a reduction in the allowed overdraft. A move in the right direction.

All I wanted to know, before my wife goes in there, is what that wording meant.

CLAPTON

MargateSteve wrote: »

That is what we will find out today. We were not in any financial problems at the time so there was no need to refinance anything. The only financial movement we wanted at the time was a reduction in the allowed overdraft. A move in the right direction.

All I wanted to know, before my wife goes in there, is what that wording meant.

sorry, I thought what you wanted to know is whether she could get the debt written off plus some compensation.

meer53

It means that (if the sheet does actually refer to your wife) they have carried out an affordability assessment and that she has failed it. Does it have any of your wifes details on ? Is it dated ?

As for the rest of your post, you need to explain fully as at the moment, it doesn't make sense.

MargateSteve

We are not looking to get anything written off with the loan. The original loan should have finished this month and my wife was surprised to get a statement saying she still had 3 years worth of payments to go. Our query with the bank over this is why she went to them to reduce her overdraft limit and walked away with an extra 3 years of debt for a reduction of 8p per month. Especially when their own documentation suggests that she should have been refused.

This is, however, only part of the reason to visit, as my posts in Reclaiming Bank Charges show!

meer53

Your wife was quite within her rights to refuse the loan. They're not compulsory.

MargateSteve

meer53 wrote: »

Your wife was quite within her rights to refuse the loan. They're not compulsory.

If she had realised it was a loan extension then she would have refused it. Also no money was transferred into her account at the time so nothing financial was gained out of it.

In naivety, it appears that she has signed something that she was told would help her without fully understanding what was being explained.

somethingcorporate

Did she not read what she was signing?