Can a loan be missold?

headachesrus

Going back some ten years ago, my husband was self employed. He had a retail premises. I had been very ill the year before, life threatening, and we didn't know what the prognosis would be. He had staff running the shop but he had had to take most of that year off to look after me. His business was really struggling as it was effectively rudderless without him.

His business bank manager made an appointment to see him (us) at home. We honestly believed he was coming to call in the overdraft and in effect close us down. It would have been the best option.

Husband was devastated. It was his baby and he wasn't yet in a position to see we were throwing good money after bad.

Bank manager arrived with flowers for me. He was in fact there with offers of further finance, and signed dh up to £45k worth of debt in the forms of three further loans, all with ppi which he insisted we had to have for the loans to be approved. There was a lot of emphasis on the loans being underwritten by the DO I and if anything happened to the business they would pay the loans in full. All a load of flannel.

We have today sent of the questionnaire off re the misselling of the ppi, but I have strongly felt for a long time that he was pressurised and coerced into taking that extra finance. DH had a heart attack the following year ...

So, well done if you have read this far ... do we have any recourse as to the misselling of the loans?

DCFC79

Why do you think it was miss sold ?

You could have said no at the time, would the business still be going if you didn't take the loan ?

Pixie5740

It is possible for loans to be mid-sold but more often than not it's a case of mis-borrowing.

Are these business loans rather than personal loans?

Was your husband able to make a PPI claim when he had his heart attack?

headachesrus

I totally agree that he should have said no. As I hope I explained, DH was in a very bad place. Desperately worried about me, his staff and his business. The bank manager knew all this. The responsible attitude from them would have been to call everything in. It was like watching a drowning man being pushed under.

I don't even know what recourse we would want. DH entered into a dmp with pay plan and can now see light at the end.

They were business loans. Business was failing, didn't need more money throwing at it, and we could have walked away with a lot less debt.

He did claim on the policy (ies)for a short period of time, but then they stopped paying. These details are a little hazy for us tbh. It was a stressful time. And I appreciate that what they paid out may be worth more than any recompense but it needs ticking off our list.

BrassicWoman

it's never that clear cut. If hubby was determined not to give up, he does need to take responsibility. And with no business to distract him from your illness who knows what would have happened?

Let it go, get moving on.

Pixie5740

How can the PPI have been mis-sold if your husband was able to make a claim on it? I'm not sure you'll be able to get that refunded.

Business loans aren't regulated the same way as personal loans are so I'm not sure what recompense you would have.

Maybe you just need to let it go and focus on your health and the light at the end of the tunnel.

andyfromotley

Hi Headache,

Yes thats been a rotten time for you.

Firstly the PPI, you have sent off the claims so thats in hand. Although if you were actually paid out on some it may be difficult to claim that it was of no use. But maybe not, you will soon find out.

I guess the crux of it comes down to loans. Was the bank wrong in giving you these loans, or was your husband wrong in taking them? From your
post you quite clearly say that your husband still thought the business could be saved at this point. It turns out that wasn't the case but i'm not sure how the bank should have known this was the inevitable outcome? Banks normally come in for flak for not lending to businesses in difficulties, in this case it is getting flak for the opposite. They backed the wrong horse in this case but i can't see that they were reckless in that they lent to you when you were in a completely hopeless position. The general view on these forums is that the responsibility ultimately lies with the borrower, and i tend to agree with that view except in extreme cases. I can't see anything in your sad case to change that view.

All of this is of course my own personal view, i have no idea who would even decide on such an issue or even if you can claim such a thing. i'm not just out of hand dismissing you or criticising in any way. On a positive note I'm glad that you are seeing light at the end of the tunnel.