Forced to consolidate by High St Bank,Irresponsible lending.

andyfromotley

Thanks speedbird,

i am going to have to say, in a polite and friendly way, that i think you are being somewhat unfair on the bank in just one regard, i'm not sure that they forced you into this loan. (i dont extend this to your points about the seemingly bad way they have dealt with your defaults etc)

You were obviously in a bad position financially. Under stress you took a course of action that in hindsight you no doubt wish you hadnt, but i dont see that you were forced into this. Its a subtle way of moving responsibility for all of this away from yourself onto the bank. This was 2008, you seem intelligent and fairly clued up. It didnt work out.

I'm not flaming you or looking to pick any sort of flight, i just found your description of that part of this interesting.

speedbird1

Thanks guys,

All your points taken on board.

In fairness given my position at that time the bank should not have consolidated,
They should have given consideration to the affordability and my then actual credit status which was pretty dire at that time.

I at that time couldn't understand why they did this,given two months into the new loan it was passed to their in house collections.

I guess its the frustration of still suffering from the 2 defaults,had they defaulted the first loan then this would already have been removed from file.

The current account defaulted at £73 over agreed £500 limit,the overdraft was never cancelled and this account was passed to collections at the point the account was over the limit by only £73.

I at that time pleaded with them to reinstate my current account and agreed high monthly repayments on the loan.

Until recently the loan had been reported as 6 months in arrears,for a period of near on 6 years,I complained in April and the default was added retro.

My argument is the bank dealt with me very badly despite my determination to repay all indebtedness.

The current account had massive fees applied so this default should at that time should never happened.

The original loan should have been defaulted in Mar 09.


I agree and appreciate your input and take on board your points,obviously my history of dealing with NPest goes back along time,

Just a year before this problem I repaid a 201k mortgage in full to the bank and also repaid a 9.5k overdraft in full at the same time,yet they defaulted a credit card with very few arrears due to an address mixup and after complaint wouldn't remove,despite me paying the full 3.5k balance back to them in one go.

I was a very good customer and since my problems back in 2009 have not been treated fairly.I thought given my previous excellent conduct that would count towards something.

I guess when you are perceived as doing well,the bank will bend over backwards,but when the opposite happens they basically treat you like dirt.

Lessons have been learned!!.

Thrugelmir

speedbird1 wrote: »

I guess when you are perceived as doing well,the bank will bend over backwards,but when the opposite happens they basically treat you like dirt.

The bank wasn't responsible for the management of your personal finances. Life is about choices. We all have to live by the ones we make.

speedbird1

Well said,

But they added to my problem at that time,in terms of debiting excessive fees,


But I do agree,its just unfortunate that I lost a very good job at that time.

Onwards and Upwards,

Thrugelmir

speedbird1 wrote: »

But they added to my problem at that time,in terms of debiting excessive fees,

Managing delinquent accounts is an expensive business.

speedbird1

Really,

I don't accept the fees that they applied,one month amounting to 8 x £46.50

OK if I had returned items that's different altogether.

Whilst I appreciate your comments they do tend to always side with the bank,
although your comments are based on information to hand,and in my case are only a snap shot of the position I was in at that time.

Account management in the context I stated reference to my accounts being managaged by the banks Personal Lending Unit.

My actual management of my accounts was in all excellent,I had held a high status with this bank,unfortunately for me losing a salary of £5000 per month was devastating and had to adjust management accordingly,but despite my best efforts was unable to manage contractual payments with the bank,although repayments subsequent were not far off those levels.


Given my previous conduct with all other creditors,they treated me fairly never defaulting accounts they trusted my integrity into bringing accounts up to date.

Thankfully in my case I resumed my profession and pre crisis salary levels,so for the past 5 years have never missed any single monthly payments.

I have never applied for sub prime credit,and with 7 accounts reporting satisfactorily for nearly six years have infact built up a good financial standing.

With the defaults falling off my credit files in August my rating will be reestablished.

By managing all my credit accounts perfectly over the past six years I have managed to undue the damage caused by those two default.


In my opinion a default should be governed similar to a Ccj.

If you Default then let it be registered but be given a time frame to satisfy,then removal.
Those that don't or won't pay are then penalised with the 6 year adverse status on credit reports.

I have read so many instances where decent honest individuals have paid a huge price for being defaulted.

In my opinion in terms of credit worthiness a default is just as bad as bankruptcy.

In my case I acted with integrity,I was never "bailed" out but paid a very high price and a devastating sentence.

.

jonesMUFCforever

OP have you by any chance been declined new credit facilities by anyone recently?

Thrugelmir

speedbird1 wrote: »

In my opinion in terms of credit worthiness a default is just as bad as bankruptcy.

Bankruptcy is with you for life. There's always a record. Whereas a default does disappear. If settled then shouldn't even cause issues in the future with the same lender.

Whilst I appreciate your comments they do tend to always side with the bank, although your comments are based on information to hand,and in my case are only a snap shot of the position I was in at that time.

Banks cannot micro manage accounts to the nth degree. As a result they have to adopt broad based policies under which to operate. An unexpected event is the fundamental reason behind most peoples financial misfortune. So my observations are totally impersonal.

speedbird1

Hi JonesMFCU

Yes even now am declined,recently applied for a current account,that declined.

Obviously the defaults still have massive impact.

I managed to get an Offshore Account with Lloyd's back in late 2009 then I guess through their in-house credit assessment allowed me a standard current account in 2013.

As far as mortgages,no go.

Credit cards,have an MBNA that I have maintained since 2006,even they put a marker on the account in 2009,I guess their monthly feeds from the CRA identified the defaults with NWest.
So although I still have a high credit limit they continue to state that I am unable to use the account,and that's with over five years of up to date payments!!.

My position with regards to being able to gain any prime credit facilities will only improve after default drop off date.

So its been a long slog,but am not happy with Nat West as the way they handled my situation in 2009 compared to my other creditors was abismal.

Long shot is have repaid all my indebtedness to the bank,and yet have been treated no better than somebody who after default never paid.

In retropsect after default I could have decided not to pay! as the severity of the Default on the Credit file doesn't differentiate between a payer and non payer in terms of actual credit worthiness.
Needs to be new guidelines with regards to defaults.

ATB

jonesMUFCforever

Not wishing to be judgmental but you do not seem to have learnt any lessons - wanting more debt after debt.