Mis sold loan

EPowd

Hi All

A member of my family was sold a loan 10 years ago to consolidate other debts. They thought the loan was coming to an end due to the amount that was borrowed but in fact there is still 10 years to go.Due to the excessive interest 3 times the amount borrowed.

I also.believe that the loan was never afforable as only a few years in they struggled to make repayments.

I have been to the financial ombudsman but they agree that the loan was affordable and that the amount payable back is totally acceptable. Despite the fact the company cannot find a signed loan.agreement.

I do have time to contest their decision but I was just wondering if anyone had an advice about how to deal.with this.

Please let me know what information I can share as I am new to.the forum


Thanks

[Deleted User]

I assume your relative requested the loan and was happy with the terms?

Loans are rarely mis sold, generally only mis bought. Any loan over a 20 year term is always going to attract a lot of interest. Mortgages work the same way.

macman

I don't see the relevance of a missing signed agreement, since your relative presumably does not dispute that they agreed the loan and terms a decade ago, and has been making repayments ever since?
If the regulator has ruled against you then you have probably reached the end of the line. Your relative failing to understand the terms of the loan does not in itself constitute mis-selling.

chanz4

I would recommend a call to cab for debt management advice

Gaz83

If she was 'advised' to take out a loan, by a bona fide financial advisor, then she *might* have a case of being misadvised.

If, as I suspect, she responded to an ad by Ocean Finance or someone like that and took out the loan willingly, then 'tough'.

James_B.

EPowd wrote: »

I do have time to contest their decision but I was just wondering if anyone had an advice about how to deal.with this.

It'll come down to a mixture of earning more, and spending less, to free up the necessary sum, perhaps with selling some things on ebay and the like.

Best thing that you cna do is to have them post up a statement of affairs on the debt-free wannabee board, so that people can help them to find where savings can be made.

What's not clear from your post is why they believed that the terms were fair when they wanted the money, and only believe that they are unfair now that they are sick of paying them back. I do not believe that they were not told the terms of the loan at the start.

StuC75

Not missold - sounds like the relative was happy to take out something approaching a Mortgage (in terms of length) to deal with and consolidate the debts held. Have you seen the paperwork that they signed which would include a schedule of payments and the amount that they would pay? In which case it looks like that got what they wanted at the time...

redpete

EPowd wrote: »

I also.believe that the loan was never afforable as only a few years in they struggled to make repayments.

As they made repayments without a problem for several years it suggests that the loan was affordable when the decision was made.

Pixie5740

Does your relative have a copy of the loan agreement? Can the lender provide an unsigned copy?

Is this one of those horrific homeowner loans from pre-2008 where people who were crap with money (i.e. defaults and CCJs) borrowed £25,000, secured against their homes with monthly repayments circa £180? If so then I'll bet it's a variable interest rate. Does your relative have any statements for this loan account?

I doubt the loan was mis-sold, more a case of your relative being enticed by lower monthly repayments.