Irresponsible lending to pensioner

ruth2561

Caz 3121 Thank you for the reply - I read it after I wrote the last post. If the bank had rejected her reply, yes she would had to make ends meet within her means she wouldn't have had any other option. This is why I am frustrated with the bank. It would have been hard to adjust but she would have done it.


Now of course its much more difficult as the disposable income is so low. I had no idea she had borrowed so much. I am currently pushing to get payments from my sisters pensions (another thread topic!) so if they pay out I have said to mum that she WILL use that money to repay the loan. I hope at that point I can convince the bank not to lend more.

ruth2561

Peaceful waters - thank you for the reply... Yes mum wasn't being responsible and yes she hasn't ever learnt to budget... You don't need to tell me that! I think that is the reason why I am so strict about living within my means and budgeting for my own family, I certainly don't want my children having to worry about my finances in the future!


'It is quite traditional to have a monthly payment on a loan.' the sarcasm wasn't really appreciated...the point was that the repayments were high compared to her disposable income.


Chesky thank you, yes she is on every scheme so far - its just the level of debt was hidden until a few weeks ago. I knew she had a small loan of £2K but not that it had been topped up to 10K. It just leaves such a small amount to budget with.


Im in no way defending mums attitude to spending - I am just as annoyed with mum for being irresponsible however if the bank had done its job and said no you cant afford it.

midnight_express

What does your Mum have to say about her situation ?

PeacefulWaters

ruth2561 wrote: »

Im in no way defending mums attitude to spending - I am just as annoyed with mum for being irresponsible however if the bank had done its job and said no you cant afford it.

But hasn't she continually shown the bank that she can make loan repayments?

Maybe I will write to the bank detailing my concerns and making it clear that I will complain if any future lending is considered

With the greatest respect, the bank cannot refuse to consider any financial transaction for Mum because you'd be unhappy. It's Mum who has to do the complaining.

tomtontom

Does your mum have internet access, either at home or at the library? Perhaps she could set up an account and start a thread on the Debt free board? They can help her with budgeting and managing her debt. If she needs help getting online they'll be able to help her at the library, other community groups will also offer support to 'silver surfers' too.

DCFC79

No harm in writing to the bank and the FOS, it wont cost much, just a stamp, just don't get your hopes up. Maybe if shes finding she doesn't have much left once everything is paid then maybe she needs to default.

ruth2561

Midnight Express - she is embarrassed and then defensive. If my sisters money does come through I have said in no uncertain terms that the loan is priority. However there is no guarantee it will.


I explained that it would give her £290 per month extra and she says that it would make a huge difference (obviously) to her being able to manage. Will it curb mums living beyond her means?? I doubt it but as long as the bank don't loan more money then I am happy that to a large extent that option will be taken away.

BrassicWoman

Ruth, if your mum is of sound mind and just useless with money, you have to be careful not to take this on yourself or YOU will end up funding her lifestyle - seen it happen so many times!

She should talk to a debt charity. Yes, she'll default, but then again, that'll stop her borrowing more once her credit rating is shot...

Don't parent your parent.

GwylimT

Is she getting her 25% council tax discount? Use a benefit checker, she may be entitled to some council tax benefit. Does she get winter fuel payment?

How well insulated is her home? If it is fairly poor she should be able to get free insulation which will lower her bills.

Get her utility bills and use an online checker to see if she is using the best rate available to her, the same can be done for home/contents insurance.

Does she use public transport? If so she needs to make sure she has a bus pass.

What is her line rental like? You can reduce this more than you could in the past.

Sit down with her and do an SOA.

Depending on the outstanding loan amount she may be able to do a balance transfer onto a 0% card, she can then set up a monthly direct debit and the actual card could be cut up so she doesn't use it. Depending on the loan this could cut her overall interest.

Some cards allow you to do a balance transfer to pay off an overdraft.

ruth2561

Peaceful waters - the bank have more information and access to mums finances than anyone else...she sits down with them and will later relay how they have said to her your disposable income is xxx they know her financial position very well but probably count on the fact she has a mortgage free home so will get their money either way.


My worry is that the mortgage free home will be pounced upon and I will end up having to overstretch my already stretched income to save her home.


Tontom - mum can only just ring out on a mobile let alone access the internet!!


DCFC79 - yes you are right - it costs just a postage stamp to ask the question!