Irresponsible lending to pensioner

PeacefulWaters

ruth2561 wrote: »

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

And here's the key point.

If an adult asks for a loan, has demonstrated that they are credit worthy and the bank can assess an ability to repay and pay essential bills why, at any point, would it be fair to decline that loan?

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.

It will take a lot of effort on their part to get this to a charging order. Especially if the loan is being paid.

This is an issue about the spender. Not the lender.

ruth2561

Brassic woman - 'Don't parent your parent.' Oh that made me laugh so much!! I was born parenting the parent! (not my dad he passed when I was 9) okay from the age of 9 then!!


Yes totally accept your point - my sister (who died) funded mums lifestyle. She was single and had a very high paying job so was able to. Fortunately for me I was always broke! I'm the one with the children and I put myself through University and have a job which benefits my children as a priority.


I want mum to be financially secure and manage her finances without me having to worry. Im hoping that this money comes through she can start afresh but hopefully without the option of more borrowing - hope she has learnt her lesson - I doubt it!

ruth2561

Peaceful water - my thoughts are absolutely the bank should be declining the loan... income of £600 - £300 for food and utilities and £290 for loans... £10 for general and non essential household items, birthdays, xmas, any maintenance on the home not to mention emergencies etc... Of course they should not be approving the loan!!!

ruth2561

Gwylim T - thank you for the reply - yes ive done all of those bits for her. ;-)

Sparx

What exactly did Mum buy with £10,000?

Does she not have any assets to sell from these purchases?

loskie

are you sure that the bank isn't paying your mum the equity in the house? Does she still have ownership? Do you know the full story?

macman

OP, you said you 'discovered' this loan? So your mum has not been honest about it-so how do you even know what other loans/debts she may have? Unless she is prepared to tell you, you cannot be 100% sure.
And unless you have a POA, you have no say in how she runs her finances, unless she is willing to let you help her. The bank will not discuss her finances with you or give you any information, nor would the ombusdman deal with a third party without the written consent of the account holder. Little you have said indicates that she is herself concerned about the situation?

splishsplash

If your mother found it necessary to borrow to subsidize her day to day living expenses, perhaps she should sell her house and live out her days comfortably in rented accommodation? It would mean she wouldn't feel as if she had to worry about budgeting? Just a thought.

It just seems like it's causing huge stress and tension between both of you, which is a pity.

matttye

ruth2561 wrote: »

Peaceful water - my thoughts are absolutely the bank should be declining the loan... income of £600 - £300 for food and utilities and £290 for loans... £10 for general and non essential household items, birthdays, xmas, any maintenance on the home not to mention emergencies etc... Of course they should not be approving the loan!!!

She should not have applied, but having applied the bank can lend to whoever they want if they're willing to accept the risk of lending to someone on a low income. They haven't really done anything wrong.

In addition, as it's not your loan, how certain are you that your mother was completely accurate about her finances on the application form?

I understand you're concerned for your mother, but you need to let this go. The bank hasn't done anything wrong.

missbiggles1

Has your mother looked at taking out an equity release loan to repay current borrowing and give herself a float?