Consolidating Partners Credit Cards & Loans

Tixy

Rather than trying to place the blame for the situation has she decided how she is going to cope with the loan?

Is she able to afford the repayments on the loan? If she is not then maybe suggests she contacts one of the debt advice charities for some advice. Depending on her circumstances and income etc they will be able to suggest how best to tackle this (which could include offering a reduced repayment plan or even considering insolvency etc). IMPORTANT - Where to seek professional impartial advice about your debts.

HaSBeenConsolidated

It still looks like mis-selling. The bank failed to provide Miss B with what she really needed and instead 'sold' her a product that suited the bank's needs. There could have been a better approach with separate refinancing deals for each of Mr A and Miss B.

Now the Bank is faced with Miss B who has no money to repay this very large loan - and Mr A who has effectively disappeared and reputedly has no money either. By no money include no assets.


The Question really is: 'Was the bank in error in taking these two down a path that consolidated the unsecured loans of two quite separate people, where there was no 'legal couple / marriage / partnership'.?'

[Deleted User]

HaSBeenConsolidated wrote: »

The Question really is: 'Was the bank in error in taking these two down a path that consolidated the unsecured loans of two quite separate people, where there was no 'legal couple / marriage / partnership'.?'

And the answer was, and still is, no.

Marriage has nothing to do with anything here. People are allowed to do all sorts of things before they get married these days, including taking out a loan.

ChopperST

Are you being serious?

HaSBeenConsolidated wrote: »

It still looks like mis-selling. The bank failed to provide Miss B with what she really needed and instead 'sold' her a product that suited the bank's needs. There could have been a better approach with separate refinancing deals for each of Mr A and Miss B.

Now the Bank is faced with Miss B who has no money to repay this very large loan - and Mr A who has effectively disappeared and reputedly has no money either. By no money include no assets.


The Question really is: 'Was the bank in error in taking these two down a path that consolidated the unsecured loans of two quite separate people, where there was no 'legal couple / marriage / partnership'.?'

Both parties were presented with the information and signed a credit agreement. Unless they lacked the mental capacity to understand and agree to the terms and conditions through a genuine mental health condition - learning disabilities, dementia etc. then there is no mis-selling here.

No body forced them to do anything.

Both parties will be chased for the debt sadly and even worse they may chase one party more than another, it all depends on who is the easiest to find / get cash out of...

Either you or Miss B needs to contact a debt management charity such as stepwise for some impartial advice.

Furthermore - why would the bank lend if they thought the individuals concerned couldn't afford to pay back? Simple answer is they wouldn't as it wouldn't be in their interest to lend to a customer that they thought may default.

HaSBeenConsolidated

but as all the unsecured loans being consolidated were already with the bank concerned, rescheduling these loans was not an issue for it. It mattered not really at all if they could afford to pay back the new loan as they clearly couldn't pay back the existing ones, which were short term and at high rates.

However the result was that each of these two people were now in greater debt individually to the bank than there were before the new arrangement.


Thus each was worse off - which is misselling. I fail to see how Miss B benefitted from this Consolidated Loan.

Tixy

Thus each was worse off - which is misselling. I fail to see how Miss B benefitted from this Consolidated Loan.

You already said both were better off - their monthly repayments were less and the interest rates were less.
It is not for the bank to predict that the couple may split up.

Whether you agree with the people posting here or not (as its clear you don't) it won't change her liability for this debt.

HaSBeenConsolidated wrote: »

Now the Bank is faced with Miss B who has no money to repay this very large loan - and Mr A who has effectively disappeared and reputedly has no money either. By no money include no assets.

Then the bank is going to be faced with a bad debt, or only getting small repayments back at a rate the debtor(s) can afford.

HaSBeenConsolidated wrote: »

The Question really is: 'Was the bank in error in taking these two down a path that consolidated the unsecured loans of two quite separate people, where there was no 'legal couple / marriage / partnership'.?'

The bank did not take them down a path. The bank accepted their application.
Besides a financial relationship clearly already existed as they had a joint account (though even if they hadn't it wouldn't have made any difference to the loan application).

As said before she needs some proper advice on dealing with this debt. But if Miss B has no money, income and no assets and has dependants (assuming the baby you mention in post 1 is literal) then perhaps the debt advice charities may recommend bankruptcy. And if she did take that route Mr A will be the one left solely liable for this debt and the only one left for the bank to chase.

sharp82

If you feel that strongly about being mis-sold, then complain to the bank. I'm not sure what you would like/expect the outcome to be though? They still had, and spent the money

If you do complain, then make sure all payments are kept up to date during the process. Failure to do will result in further charges and a damaged credit rating

HaSBeenConsolidated

A complaint has been raised with the bank. This is on-going.

It's interesting that nobody responding to this seems to see that there is any possibility that the bank might have done something wrong. Do Banks never missell?


If Miss B had been advised by the Bank to seek independent legal advice, then there is very little possibility that such advice would have been to proceed with this Consolidating Loan. The Bank failed to do this. She did not get that advice. The bank proceeded to protect its own interests as best it could in admittedly a poor situation. It should not have done so in this way. Thus - it was missold.


Does anybody agree with this? Surely somebody must.

19lottie82

I don't think this is a real situation at all

25 year personal loan?

An 18 year old with circa 10k personal debt?

Hmmmmm.

Apples2

HaSBeenConsolidated wrote: »

Does anybody agree with this? Surely somebody must.

I doubt it, because you are entirely wrong.

The only people who would agree with you are also people who randomly agreed to purchase anything but afterwards decides to point the finger in any direction but backwards.

Why do you think the bank should provide you with free financial advice?
The bank offered a product which WAS in the best interest of the customer.

I would suggest if the bank had suggested Miss B seek out her own financial advice before proceeding, Miss B wouldn't have and signed anyway.

Perhaps if miss B had a more considerate family they would have grouped together to pull this girl out of a £10k debt at only 18yrs of age or even stopped it happening in the first place.