What does Irresponsible Lending mean?

Monkeyballs

I get where you are coming from Op, I'm an ex gambler too.

But you're approach is all wrong IMO, you are trying to pass blame on to someone else instead of accepting the debt as being a symptom of your problem - remember, it's your problem, not theirs.

I'm guessing that you have a reasonable income, perhaps not massive but not small either? If you are seen as borrowing but then making repayments then the risk factor is lessened... If you borrowed and then immediately started to not pay then I suspect that you wouldn't have been loaned more.

Malcnascar makes a good point, at the beginning of my battle to get out of my gambling addiction I contacted one of my lenders (The Cheque Centre) and if I had a better more helpful response from them then I would probably have come clean to other lenders too (this was pre-DMP). I contacted them about a week before my loan was due to be repaid and explained that I had a gambling problem to which they referred me to the branch despite telling them that I was embarrassed and would feel humiliated they refused help... When I went into the branch I was verbally abused, criticised, called a thief, etc. all in front of other customers! I dropped it and let the loan/reloan cycle continue...

I eventually entered into a DMP and after a while and after getting a bit more clued up I put in a formal complaint, as they held details of me contacting them they eventually refunded the interest and charges and although they apologised for the way I was treated they still said that in their eyes I was wholly responsible.

Good news was that I paid a lot of my existing debts off, left some in the bank as an emergency fund, bought some dearly needed glasses to replace my 7 year old pair and went to the dentist (exciting stuff eh?).

I wouldn't expect any of my other lenders to be so cooperative as I'd not gone through what I had with them...

Bottom line, accept your shortcomings and be thankful for the IVA which while it may seem like a pain now will be a huge learning curve so make sure that you're sensible now and hopefully the future will find you debt free, more money savvy and no longer a gambler.

MB

ericctheking

There used to be interesting laws regarding someone classed as a spendthrift. I guess for someone with addictions etc this applys too.

Taken from wikipedia

"The modern legal remedy for spendthrifts is usually bankruptcy. However, during the 19th and 20th centuries, a few jurisdictions, such as the U.S. states of Oregon and Massachusetts, experimented with laws under which the family of such a person could have him legally declared a "spendthrift" by a court of law.[10] In turn, such persons were considered to lack the legal capacity to enter into binding contracts.[11][12] Even though such laws made life harder for creditors (who now had the burden of ensuring that any prospective debtor had not been judicially declared a spendthrift), they were thought to be justified by the public policy of keeping a spendthrift's family from ending up in the poorhouse or on welfare.[13] Such laws have since been abolished — in some countries — in favour of modern bankruptcy, which is more favourable to creditors."

Banks seem to think they have no responsibilities at all these days.

Pixie5740

This is from 2007 but it gives some case studies involving irresponsible lending that the Financial Ombudsman either upheld or rejected.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/59/59-banking.htm

I find it very convenient being able to apply for credit online rather than having to spend my lunch times being assessed at the bank.

Monkeyballs

ericctheking wrote: »

Banks seem to think they have no responsibilities at all these days.

I disagree with this, I think that they're damned if they do, damned if they don't... I think as a society we are starting to think that the individual has no responsibilities and I'm not just talking about financially here.

Everyone is entitled to make mistakes in their life, it's how we learn and evolve but if someone never learns from their mistakes or worse knows that what they are doing is wrong but does it anyway then I have little sympathy especially if their own selfish actions impact negatively on others around them.

Help should be offered but the individual should take responsibility for their own actions in one way or another.

Pixie5740 wrote: »

This is from 2007 but it gi ves some case studies involving irresponsible lending that the Financial Ombudsman either upheld or rejected.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/59/59-banking.htm

I find it very convenient being able to apply for credit online rather than having to spend my lunch times being assessed at the bank.

Thanks Pixie, that's an interesting read

MB

James_B.

ericctheking wrote: »

Banks seem to think they have no responsibilities at all these days.

In many circumstances, they don't.

I genuinely don't understand where you get this idea from that a service provider has a duty of care to you other than what is set out in law. An adult buying a service has a duty to themselves to understand the contract that they sign, and to take responsibility for fulfilling their side of it.

It is no different than someone buying a bottle of rum from Sainsbury,feeding it to their baby, and then complaining that the supermarket should have known that they were a bad parent and so should take the blame.

ericctheking

James_B. wrote: »

I genuinely don't understand where you get this idea from that a service provider has a duty of care to you other than what is set out in law. An adult buying a service has a duty to themselves to understand the contract that they sign, and to take responsibility for fulfilling their side of it.

It is no different than someone buying a bottle of rum from Sainsbury,feeding it to their baby, and then complaining that the supermarket should have known that they were a bad parent and so should take the blame.

Yes, it is really terrible when people can't take responsibility for their actions, spend all their money and need the state to help them out. disgraceful people!
ISN'T THAT A BIT LIKE banks lending money to a load of drunken sailors when they roll into town, wonder why they aren't getting paid back, whinge about it and get bailed out by the government!
Why do we bother having different interest rates for different people, if debt must always be paid whatever the circumstances? Just one rate should do. Of course that is a ludicrous idea because you don't lend money to a bunch of drunken sailors in port for the night and expect to get paid back.
You know what if someone is a gambling addict and never has any money or assets it is the banks own fault they don't get paid back when lending to them. If they bothered to do some work and discuss loans in interviews with people instead of relying on a website and computer to make the decision these situations wouldn't arise. Or I guess they could lend to whoever and then flog the debt off to some mugs?
And I don't think that supermarkets or anyone should sell alcohol to alcoholics. A pub or off license selling alcohol to Gazza shouldn't be let off, they should lose their license for that!

And why are drugs illegal? why are machine guns illegal?
Why don't we just let people sell anything they want to anyone and then ONLY blame the buyer.
Why don't BAE systems sell some weaponry to ISIS or North Korea?

James_B.

ericctheking wrote: »

Yes, it is really terrible when people can't take responsibility for their actions, spend all their money and need the state to help them out.

The state? What on earth are you talking about. I was responding to your contention that the banks have a duty of care, why are you now trying to change the subject to the state?

The rest of your post, I'm afraid, is just a bit incoherent. It goes no way to saying why a bank should be responsible if an adult borrows money from them.

I understand that you want someone to act as a parent to you, to veto your adult decisions, pat you on the head and say "there there, it's not your fault" when you do something stupid. I just think that it should not happen, and am glad that it doesn't.

If you genuinely can't make your own decisions, it's hard to know what to recommend.

Gaz83

ericctheking wrote: »

You know what if someone is a gambling addict and never has any money or assets it is the banks own fault they don't get paid back when lending to them. If they bothered to do some work and discuss loans in interviews with people instead of relying on a website and computer to make the decision these situations wouldn't arise.

Are you seriously suggesting that if gambling addicts had to have face-to-face interviews when applying for loans they would... you know... tell the truth?!

PeacefulWaters

Banquo21 wrote: »

For Nat West to use a person to assess your loan application not a computer.

A long long time ago, in a previous life, I made the approve / decline decisions on personal loan applications in the bank branch I worked at. The arrears record on those loans I approved was pretty good compared to others. I was good at this part of my job.

Then they brought in a completely automated process. Check the ID manually and if the computer said yes issue the funds. I moaned about it. Said a computer doesn't get a "feel" for an application. It couldn't possibly do a better job than a good underwriter.

Guess what? Approval levels increased and arrears levels halved as a result of removing manual underwriting. The computer did a better job than the people.

You lied about loan purpose. You committed fraud. Don't blame the bank.

Thrugelmir

Banquo21 wrote: »

I was wondering if Nat West neglected in their duty to protect me from debt.

At the current time the FCA has not tackled the issue of unsecured debt. Up until April of this year responsibility still lay with the OFT. The FCA has issued regulations on mortgages (MMR), is currently chewing its way through the pay day lenders. Only a matter of time before credit cards and personal loans come up the radar.

Realise this is no consolation. However sometimes it's the experience which teaches the lesson. Hopefully something you'll appreciate in the years to come.