Forced to consolidate by High St Bank,Irresponsible lending.

speedbird1

Did I say I was interested in more debt?

Think you maybe the judgemental one.

Think this has run it's course.

getmore4less

I am trying to understand the timeline of the current account in isolation.

is it something along the lines of

1.Went overdrawn by significant amount.

2. Got consolidated/capitalized into a new loan.

So at that point you had no overdraft on the account.

4. You then went on to run up further £500+ putting the account into default.

WHY.

If you were getting charges between 2&4 what were these for?

speedbird1

Hi,

At the time of consolidation I had an agreed overdraft of £2000,.

At consolidation my account was marked with a £500 overdraft.

They still applied several fees,so called account management fees of £46.50 each.

My overdraft on account went to £573,so just £73 over limit,then sent to collections,their credit management deparment and defaulted the account.

As I said my new capitalised loan went to same department and I then made arrangements for repayment.

Before all this happened I complained to the bank,about the excessive fees applied but got no redress,I did also complain about particular individuals from collections.

meer53

I don't think you have any cause for complaint really. The defaults were correct as you defaulted. The bank consolidated your loan and overdraft and gave you a £500 overdraft facility. You went over this limit, the time to shout "irresponsible lending" would have been at the time. Not now.

What are you wanting from the bank ? What was their response to your complaints ?

speedbird1

Thanks for your reply,

The bank should have defaulted the original loan at the 5 month arrear status,
My financial situation was dire and in no way would afford the new consolidation at that time.

Re the current account,previous to the Default,at £73 above agreed limit,the bank had applied excessive fees circa £3000 in the preceding year.

My point is given that I kept the bank fully aware of my situation as indeed other creditors were,Nat West who were my main bankers treated me disproportionately less favourably.

Despite the loan default I felt that the current account default was in part caused by their fees.

Finally I believe they irresponsibly consolidated that ineffect defaulted loan,and thus have extended the Default position I am in to date.

meer53

They offered you a consolidation loan, you accepted it. The time to complain about fees was when they were applied, you still haven't said what their response was to your complaints ? Did you speak to the FOS at any stage ?

PeacefulWaters

It reads as if you continued to mismanage your account after they threw you a lifeline.

I struggle to sympathise.

tell_it_how_it_is

I'll be honest and say that, from the text provided, this ultimately appears to stem from poor management of your personal finances.

This is more my view than intending to be a slight on you, but I find it surprising when people who earn a decent amount find themselves even bothering with overdrafts, loans or credit cards (or at least not clearing the latter regularly).

I earn less than 2k a month, and missus is only part time, and we manage without any of those while enjoying plenty of treats and holidays (on one now yippee). Not meaning to be holier than thou, just that it'd frustrate me to be paying - aka giving away - any of my hard earned on unnecessary fees and charges.

However, it does appear the agreement wasn't really doing you any favours at the time - it does feel like you get kicked when you are down - and I'd suggest it does at least warrant a complaint to see if there's any redress.

20aday

I'm not sure who you bank with OP but when I was much, much younger I was far too generous with my money and thought nothing of borrowing money left, right and centre to fund my extravagance in buying things for people who were, in short, no good for me.

I attempted to get a consolidation loan with my then bank who told me "no" because my conduct suggested I'd refinance the debt and then run up further debts.

At the time to say I was "miffed" would be an understatement but hindsight is a wonderful thing and whilst I ended up on a Debt Management Programme which affected me for the best part of eight years I could've owed much more eventually than I ended up doing so in the end.