irresponsible lending + unsecured personal loan

oldhand

Do give him credit for calling a £10K loan SMALL.

27col

lex2013 wrote: »

A few months ago I took a small unsecured personal loan (10k) over the internet with HSBC. The application was fast and the money was in my account strain away. I used the money to invest in my business.

HSBC never asked for the exact reason for the loan. On the drop down box requesting information I just selected the “other” option, as “business investment” was not listed.
Now several months later my business has gone bankrupt and I work for someone else and earn significantly less, making it hard for me to pay back the loan.

I have never missed a payment and have good credit history. I spoke with HSBC and tried to increase the term of the loan (to reduce monthly payments) but the application was unsuccessful. Other lenders that I have contacted are not willing to allow me to consolidate my existing credit because I have reached my debt limit. Over the last few months I have gone deep into my overdraft making it hard for me to manage my finance.

Can I accuse HSBC of irresponsible lending because they never requested additional details for the loan purpose?

Any other suggestions? :j :beer:

You've got that the wrong way round. Because you have been mismanaging your finances you have gone into your overdraft.

CKhalvashi

27col wrote: »

You've got that the wrong way round. Because you have been mismanaging your finances you have gone into your overdraft.

This was what I was about to say.

OP, £10k is small loan for a new business? I don't think so. I started my business on few days from work, and about £20 of diesel; that's small. I was still working for someone else whilst it was taking off.

At the same time, this was personal lending, not business, so if you tell them this, you may be in spot of bother.

CK