Consolidating Partners Credit Cards & Loans

ch3101

HaSBeenConsolidated wrote: »

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.

Misselling, as you have heard in the PPI adverts, is when a product is sold to a customer without them knowing about it or wanting the product. In this case miss B was fully aware of the agreement as it is detailed in the credit agreement, which she signed.

For the loan to be missold she would have had to sign an agreement for a 0% interest credit card and ended up with a mortgage.
An extreme example but you get the idea, I hope.

A bank does not have to tell someone to seek independent legal advice on it at all, hence they have not "failed" to do this, they just didn't.

They would of course have said something like "if you need advice on whether to go ahead with the application, you can speak to the CAB etc" because banks can't give advice. Whether that was said or written in the agreement doesn't matter.

They have accepted an application that miss B and Mr A have made, and they are now both liable for the debt.

JuicyJesus

Why bother asking if even after people explain why it was not mis-sold you still go "I still think it was mis-sold"?

I'm so sick of the term "mis-sold" it hurts, it seems to be becoming a catch all for "I bought this and now I regret it".

HaSBeenConsolidated

This is an all too real situation.

Though I'm uncertain of the original length of the new Consoldating Loan was intended to be, it is now around 7.5 years old and looks to be going to be very many more years older before it gets paid off - if ever.


And the original Consoldating Loan - bringing in Miss B's and Mr A's personal unsecured debts was over £20,000 - and yes she was only 18 at the time - as most of these debts were really Mr A's either on his own Credit Card or dumped on hers. It can be quite surprising how quickly an irresponsible partner can run up debt for you ifyou don't or can't control it / him.

ch3101

HaSBeenConsolidated wrote: »

This is an all too real situation.

Though I'm uncertain of the original length of the new Consoldating Loan was intended to be, it is now around 7.5 years old and looks to be going to be very many more years older before it gets paid off - if ever.


And the original Consoldating Loan - bringing in Miss B's and Mr A's personal unsecured debts was over £20,000 - and yes she was only 18 at the time - as most of these debts were really Mr A's either on his own Credit Card or dumped on hers. It can be quite surprising how quickly an irresponsible partner can run up debt for you ifyou don't or can't control it / him.

Any money spent on HER credit card is HER debt as she would have to give permission to do so. Otherwise told him her PIN number.

To be honest, miss B has made a large mistake in taking this joint loan out and now she just has to take it on the chin, get up and move on.

Tixy

HaSBeenConsolidated wrote: »

. It can be quite surprising how quickly an irresponsible partner can run up debt for you ifyou don't or can't control it / him.

Its a very common theme on these forums, particularly the debt free wannabe board. Many many people who are working their way out of debt either because they agreed to obtain better rate loans/cards for partners in debt or because they took out joint loans or joint 100% mortgages etc or because they loaned family/friends money or agreed to be guarantor on loans for supposed friends or family.

Its a crap situation for anyone to find themselves in, and she is far from the only one. What she needs to do now and the best place to focus her energies is to decide on how she will deal with the situation she finds herself in.

HaSBeenConsolidated

Maybe it's now time for the Financial Regulators - the FCA and others - to take a look at this whole scene. We live in a rather !!!!less society where too many inexperienced people are being dumped on financially by their so call partners, friends and even family.

The lending institutions should be required to take a more responsible attitude to selling Loans of all sorts, most especially unsecured loans. If the product is not truly in the Best Interests of the Borrower the the Banks should be made culpable.


Joint Loans to people in non-formal / casual relationships should in principle be outlawed unless supported by formal independent legal advice.

[Deleted User]

HaSBeenConsolidated wrote: »

Joint Loans to people in non-formal / casual relationships should in principle be outlawed unless supported by formal independent legal advice.

Why? Do married people not split up?

ch3101

HaSBeenConsolidated wrote: »

Maybe it's now time for the Financial Regulators - the FCA and others - to take a look at this whole scene. We live in a rather !!!!less society where too many inexperienced people are being dumped on financially by their so call partners, friends and even family.

The lending institutions should be required to take a more responsible attitude to selling Loans of all sorts, most especially unsecured loans. If the product is not truly in the Best Interests of the Borrower the the Banks should be made culpable.


Joint Loans to people in non-formal / casual relationships should in principle be outlawed unless supported by formal independent legal advice.

We live in a society where people are not properly educated on finance and budgeting etc, there are already initiatives in place to help this.

I work for a large bank and mainly deal with Loans. As part of our scripting we tell people where they can get more advice on the application before they sign anything - most lenders do this.

With regard to your last paragraph there, how are married people any more responsible? What of two brothers wanted a joint loan but nooooo, they're not married to each other so that wouldn't be possible.

The bank did act in the best interests of miss B and Mr A as they had applied for a product. Their application indicates that they wanted the loan and the T&Cs in the agreement were made clear for them to read and understand.

HaSBeenConsolidated

Yes of course they do - but in most cases there will be an agreed financial settlement with any assets, both positive & negative, being fairly split between them.

In a marriage where there is a death or redundancy there may well be capital that can be used to clear any outstanding debts, which in the nature of the marriage will all be effectively 'joint' even if in one person's name only.


One person cannot just clear off and leave the other in the lurch, as they can in more casual joint relationships.

[Deleted User]

In that case, they can't buy houses, either.