Forced to consolidate by High St Bank,Irresponsible lending.

speedbird1

Just been going over my files with a certain bank and I believe I have been the victim of Irresponsible lending.

Back in 2007 had 15k loan with a high St bank,everything fine til I lost my job,arrears went to 4 months,managed to get back on track cleared arrears but same bank defaulted my credit card at 3 months arrears.

Move forward a year again lost position kept bank informed had at time 2k overdraft,and loan arrears of 4 months.
Account passed to in house Lending unit.charged excessive fees.

Bank then wrote to say they were consolidating original loan with the £2k overdraft,at 10% above base rates.
At this time original loan now 5 months in arrears,credit file messed up with credit card default by same bank.
So forced to take new loan 340 per month over 5 years.

One month later loan account sent to collections
Current account 2 months later defaulted at £73 over agreed limit.

I paid current account off ,satisfied that on my file for six years.

Entered agreed repayment with loan,but for nearly six years mid reported as AR and only my intervention got the bank to file default retrospect fully.


At that time in 2009 I had huge fees applied to current account,yet was defaulted at £73 over agreed £500 limit.


I believe the bank acted irresponsibly in the initial consolidation and should never have defaulted my current account,reasons given.

This bank has totally messed me up and are still doing so yet I have repaid them everything since 2009 and never had reduced settlements.


I have complained stating the current account should never had defaulted,
Also should never have been forced to take consolidation loan,as the original was in default.


These two default still showing on my file,

Any views on this.

Tixy

The post isn't very easy to understand what happened with the overdraft/current account.

£2k overdraft was consolidated in to the loan. Did the bank then offer you an new overdraft limit of £500? and you later had a balance on that account of £573 overdrawn?

Why do you think the current account should not have been defaulted? Were you over the authorised overdraft limit? Did they recall the overdraft?

Is it because you believe you were only over the limit due to bank charges?

What is the date of the default registered for your current account? From what you have posted it sounds like it would have been 2007 + 1 year + 1 month - so sometime in 2008?

Tixy

Regarding the loans.

The consolidation the bank offered to you - of the previous loan and overdraft - was this over a longer term than the loan it replaced? did it reduce the monthly repayment by changing to the new product.
When they offered it to you - you presumably agreed and signed the credit application?

How long after taking out the second loan did you fall behind with repayments? What date of default did they retrospectively add to your file?

speedbird1

Hi Tixy

Overdraft was consolidated to the loan in March 2009,this was basically made up of bank charges.
I was then given a £500 overdraft and the current account was defaulted at £573 dr.
So had new loan of circa 15k including overdraft, March 2009.

Date of default current ac Aug 2009.
Default date consolidated loan Aug 2009.

My point is that at time of consolidation,Mar 2009 the original loan was at 5 months in arrear,and my credit file adverse due to same bank defaulting credit card.

Argument is therefore that the original loan should have been defaulted Mar 09 and should have not been forced to accept new loan.

Current account defaulted 73 over agreed 500 limit,that balance made up of excessive fees.

Since late 2007 til mid 09 bank debited over 3000 in fees including account handling,returned fees charges,so had these have never been applied then account would probably never have defaulted,

The bank adversely affected me and made my position significantly worse.

I am still suffering from defaults reg Aug 09,
The original loan should have defaulted mar 09.

In my opinion the bank lent irresponsibly given my adverse situation in part as a result of all those charges they applied.

speedbird1

Hi Tixy


The consolidated loan was given the same 60 months repayment time frame as the original.

The payments were increased by £50 per month.

Yes I signed agreement but had to accept the consolidation,I never asked for it.

They charged 10% above base rates variable,


The new loan account was sent to collection at one months arrears,this occurred at two months into new agreement.

Then entered agreement plan,but they marked my file AP for really six years until I complained then added default retrospectfully.

Thanks for your support

Tixy

I think you would struggle to argue that you were forced to accept the new loan. You could have refused it. (I appreciate it may not have felt like that at the time, but they could simply argue that you could have done).

In all honesty I think by the time you have raised complaints and they have been investigated the defaults/entries will have dropped off your credit file anyway as it is only a couple of months until they go.

speedbird1

Hi Tixy,

They applied default retrospect 31/08/09

speedbird1

Thanks Tixy

Its frustrating having these defaults on file,even with only 2 months to go before they get removed.

I believe they should have defaulted the first loan in Mar 09 so now I would now been clear and also believe the current account should never had been defaulted.

When I did complain about the AP markers,( 6 code markers being reported for six years I asked for redress,ie removal but they wouldn't budge,but compensated me £50 which I though was far too low.

Any way you live and learn and shall never bank with them ever in the future..

Anyway keep up with your fine work on here,you certainly know your stuff and certainly an invaluable member to this forum.


Thanks again

andyfromotley

Hi speedbird,

you said that you were forced by the bank to take the loan. How?

speedbird1

Hi Andy,

Due to my accounts being over seen by their Lending Unit and at that time the first loan was near on 5 months in arrears they instructed me to accept the consolidation.

I felt cornered given my financial situation so agreed their new terms,at a highrr rate.

In retrospect I should have refused and let the original loan default at that stage.


But I at that time was not happy with the way had been previously treating me.

Firstly default issues with a credit card,ie early default.

Excessive charges and account handling fees that ultimately lead to default on my current account.

I had run an excellent account with the bank,was a Private account holder,had substantial mortgage and had the usage of a large overdraft.


The loss of my professional position caused a massive reduction in salary,and although I kept the bank fully ware of my position they treated me unfairly.

Compared to all my other creditors they were the only one to default me and in fact make my situation worse.

Thankfully since 2009 I have kept impeccable accounting with all other creditors so at least when these default drop off in August should be back to a credit worthy status.

somethingcorporate

You already suggest you agreed to the new loan, you could have refused it so suggesting you were forced is not accurate.

Seems pretty bonkers that they thought you could afford a higher monthly payment when you had defaulted on a lower one - worthy of a complaint I would think, what have you got to lose?

By the time it's through your credit file will be clean but you may be able to get something out of the bank, seems their actions may have been unreasonable.