Would you loan £10000 to someone unemployed?

meg72

cyclonebri1 wrote: »

Advice needed for a relative please.

It's a miss selling of credit issue possibly.

In brief after having 2 other cars on hp from a main agent, and paying off over about 7 years he was made redundant.
He made it clear he was our of work and had an income of only £370 per month from benefits. The payment for the car was £224 per month.

The main dealer didn't want the risk, they had used their own purchase scheme for the previous cars, so they off loaded it to another credit company, FSA regulated and they took it on.

EDited to add;

My original typo gave exactly the opposite meaning to the bold bit, now edited correctly. My signature is pretty accurate I'm afraid.

It was a 5 year period and it has been paid until now. There is 1 year remaining.

Now I'm sure you can see no one can spend that on credit and live for a month on £150, but without going into any great detail he was supported as a carer but unfortunately due to a bereavement, that support is no longer in place.

Now, NO false info was given, it isn't secured against property etc so how could that be correct.

I know tighter checks are in place today, but this was 4 years ago.
Can anyone give any advice regarding action to take.

I did speak to out family advice legal line but they were unsure and suggested calling the financial ombudsman. I'll do that today.

Please skip the comments about whether or not he should have borrowed like that, it won't help, I don't suppose he expected to be out of work for long but he has been.

He has no way to continue the final years payments.

As title would I loan 10,000 to someone unemployed NO

opinions4u

cyclonebri1 wrote: »

I will ignore all posted since that error to this point.

Okay. Here's my revised thoughts.

Crap lending and mis-selling are different things.

He asked for a loan. He got a loan from a lender willing to lend. The loan met his needs.

Were they stupid to lend? Probably.

Was he stupid to even ask for the loan, let alone sign the agreement? Almost certainly.

I cannot see how there can be a gain from pursuing this with the FOS, a court or any other body. Sell the car. Clear the debt. Move on.

Now, I have spoken to the FSA Ombudsman. They advise to make a claim against the supplying company, they did say after 4 years it may prove difficult, but certainly didn't rule it out. They did say it would be a claim if it was in real today time.

They never tell you not to bother.

I also met with CAB today of a related matter, they were [STRIKE]less hopeful[/STRIKE] more realistic

Fixed that for you.

_Andy_

Why title the thread this? When what you wanted to know is "was this loan mis-sold?"

Not really relevant who random people on a web forum would lend to, surely?

cyclonebri1

pauletruth wrote: »

not fraud he has paid back 4/5s of it.

if its not hp then all he can do is offer them token payment until his money issues improve.

if hp had it back. or they will come for it.

both parties seemed happy with the loan agreement so were is the miss selling. he owes something like 3k not earth shattering can be sorted.

I've thanked you for clarifying that point, to another poster he was given the loan on the back of his credit history over 2 previous cars.

Thanks to those that didn't condemn,:T and I did expect a few holier than those answers, it's a trade mark of the forum.

The title, simply to make it different from so many other similar issues, and to get immediate attention.

The bold bit? I can assure you £3K is earth shattering when you don't have it.

I don't see any point in pursuing this, I didn't have much hope before I posted anyway, but the post was rather out of dis belief that a loan company could legally act this was, it is probably a moral or ethical issue and we all know what that means.

Putting it into context from his point of view, after 35 years in full employment, he never expected 5 years of joblessness.

End off, please

Takeaway_Addict

cyclonebri1 wrote: »

I've thanked you for clarifying that point, to another poster he was given the loan on the back of his credit history over 2 previous cars.

Thanks to those that didn't condemn,:T and I did expect a few holier than those answers, it's a trade mark of the forum.

The title, simply to make it different from so many other similar issues, and to get immediate attention.

The bold bit? I can assure you £3K is earth shattering when you don't have it.

I don't see any point in pursuing this, I didn't have much hope before I posted anyway, but the post was rather out of dis belief that a loan company could legally act this was, it is probably a moral or ethical issue and we all know what that means.

Putting it into context from his point of view, after 35 years in full employment, he never expected 5 years of joblessness.

End off, please

Can he not sell the car, pay the loan of and use the rest for a cheaper car?

Seems alot of stress that could be avoided?

cyclonebri1

Takeaway_Addict wrote: »

Can he not sell the car, pay the loan of and use the rest for a cheaper car?

Seems alot of stress that could be avoided?

Well I was just about to ask this in another thread as in my confused state I probably missed the obvious. I have never borrowed in my life so I'm a bit green in these matters to say the least.

So, maybe you can help here?
What is the correct procedure for selling a car with outstanding finance?

cyclonebri1

Ok, I didn't really want to bring all this up again, but the company involved is regulated under the FSA.

It's now over 8 weeks since they were informed that I wished to register a complaint.

This was done over the phone and when I asked if it was required in writing I was told no, it had all been recorded.

They have made no contact,

Is it a dead loss?, well from what has been said then yes, but it's disrespectful to say the least to not even reply as they are (I thought) legally required to do.

gayleanne

I haven't a clue what you are on about, but if you are trying to get a debt written off, on the information you have given, you got no chance!!!

How can You make a complaint, from what I can make out of your senseless posting it is not your debt.

John1993_2

cyclonebri1 wrote: »

Is it a dead loss?, well from what has been said then yes, but it's disrespectful to say the least to not even reply as they are (I thought) legally required to do.

Given the nature of your "complaint", they probably thought that you were winding them up. If you aren't happy with a loan, then the right action is to repay it, not complain that they gave exactly what was asked for.

You may as well order oysters in a restaurant and then, when they arrive, complain that no-one checked if you were allergic to oysters.

Basically the dealer seems to have believed your relative, treated them like an adult, and gave them what they asked for, and for this you want to lodge a complaint. Can't you see how ridiculous this is?

What outcome do you want? Please don't tell me you want them to be able to keep the car and not pay the loan back.

cyclonebri1

gayleanne wrote: »

I haven't a clue what you are on about, but if you are trying to get a debt written off, on the information you have given, you got no chance!!!
How can You make a complaint, from what I can make out of your senseless posting it is not your debt.

Well, you are right there. Look, I'm not going to humour your aggressive post, if it makes you feel better, the person concerned has had a complete mental breakdown as a result of many things, this is just 1 that he cannot now handle.

The loan company where quite happy for me to act on his behalf, I'm just sorry that you can't accept that.