MY STORY: Irresponsible Banks, Can I claim Back Interest

elyvalleyblue

Irresponsible Banks
At this moment in time I’m unemployed so my credit rating is very low. So even if I wanted a credit Card, (not that I would want one ever again). I would get turned down.
Anyway about 7 years ago I started to do a Higher Education course. This meant that I was a ‘Student’ in the banks eye, and I got the perks that banks offered.
This included a credit card which started off at say £500. Being a student and I was stupid and irresponsible with it. Before I knew it I was at my limit of £500. So what does the bank do, they put the limit up to £1000. History repeated it self several times and before I knew it I had reach a new limit on my credit card of about £4500. They did this knowing I had no income.
Now I look back and say that I was stupid and irresponsible to allow my self to get in that situation. However my argument is that the ‘Bank’ them selves acted irresponsibly by giving my such a limit. I mean if my credit rating is so low because I’m unemployed, it would (in theory) by the same as student who had no income 7 years ago.
Just think about if, if every say ‘2 out of 10’ students could have an uncertain future. The banks will make an absolute killing out of these people, like they have done to me.
Anyway it got to the situation where I could no longer afford the monthly payments. So I had no choice but to enter an agreement with the bank and take out a ‘Managed Loan’.
For those who do not no what this is the bank in my case takes £100.00 per month from me, however only about £25 goes on the debt and the rest is interest.
Now I’ve been paying this for a few years and think I’ve paid off about five or six hundred, after paying thousands in interest. I have no problem about paying the debt, but fair is fair, they should not be taking advantage of people like this.
Now I’m wondering if there is anyone out there, that can help me. There are two ideas I have are below.
1. Prove that the bank has acted irresponsible and have broken their own credit rating procedure by giving me the credit card in the first place. I would like the whole debt written off (maybe claim back some of the money because of a huge interest rate), with out affecting my credit rating.

2. The money that I have paid (High Interest) goes to ward paying the debt off. For example £70 * 12 Months * 3 Years = £2520. So the high and scandalous interest they have charged will come off my debt.

Any help guys would be very much appreciated

jonesMUFCforever

Two stupidities don't make a right.

I go into Tesco every week I don't attempt to buy everything there is, even though with a decent credit limit I could if I wanted to.
I don't want to sue Tesco for tempting me with their offers. You should have done the same.
Just because they gave you a higher limit does not mean that you had to spend it.
It is now your debt - deal with it. Don't whinge about you have paid back £xx and still the debt appears high. You knew from day 1 that they would charge interest on your outstanding balance.
I know of no bank who give any student an interest free credit card.

Lavendyr

I can't really add much more than the above poster. While I don't think that banks should raise credit limits so freely, you and you alone spent that credit, you alone have to answer for it. You could have asked the bank to decrease the credit limit, you could have paid it off in full each month, you could have set yourself a limit and stuck to it (which is what I do) - and you did none of these things.

As for the "huge" interest rate, they must have informed you of this when you took out the card, and on every statement thereafter, so you cannot claim ignorance of the interest rate, or that it is unfair. At the end of the day, you accepted their terms.

Rather than trying to find a way to blame the bank, I would suggest that your focus be on looking at how much you can pay each month to get rid of this debt. Look at your incomings (I presume you are signing on if you are unemployed currently) and outgoings, look at how much you spend (there is a good budget calculator on this website which will help you work out your expenditures exactly), and look at the areas where you could potentially cut down on expenditures in order to pay off more of this debt.

It is not going to go away - all you can do is get it paid off as soon as you can, and try to exert a little more willpower in the future.

Good luck.

CopperPlate_2

Sorry, but although I have some sympathy with the situation you are in, you admit yourself that you kept spending up to the limits. The bank increased you limit - the alternative would've been not too, and then you would've breached your credit limit each time and incurred a penalty charge, and we'd be having a discussion on another board about reclaiming illegal bank charges instead.

You spent irresponsibly and you should be commended for the action that you've taken to try and deal with the debt - it certainly can't have been easy. But at the end of the day, trying to blame the bank for 'tempting' you to spend sticks in the throat a bit.

wymondham

I know it's harsh, but you're an adult, and therefore responsible for your own actions as you would have signed forms accepting their terms - you did'nt have to spend to the max, and should have seen what the bank was doing (it's their job to 'encourage' you to overstretch as this is how they get their money!). Glad you've seen the light and now sorting though, best of luck.

jamalfatty

For your plans...
1 - How are you going to prove they were irresponsible, you applied for credit, they accepted, you signed up? You want the whole debt written off and your credit worthiness left intact? I'd like all my debts written off, perfect credit scores and maybe my bank to pay me 30% or so interest, never going to happen though.

2 - So what your saying here is you dont want to pay interest on money you have borrowed? Wouldnt we all.

exel1966

elyvalleyblue wrote: »

1. Prove that the bank has acted irresponsible and have broken their own credit rating procedure by giving me the credit card in the first place. I would like the whole debt written off (maybe claim back some of the money because of a huge interest rate), with out affecting my credit rating.

Impossible as they haven't broken any credit rating procedure as you put it.

The question you should be asking yourself is - Would I like to be able to gain credit/loans/a mortgage in the next few years ? If yes, act responsibly and pay your debts in full. If not, and you're willing to make the next 6 years of your life a financial hell, then carry on with your head up your a** thinking you've been dealt a rough hand !

sinizterguy

It was your irresponsibility. Take responsibility for your actions.

JMcC

I strongly suspect you have absolutely no chance of success in your original plan of action, so I'd give that up as most replies have stated.

However. You do need to look at a more sensible approach. You make some reasonable points, which perhaps if made sensibly and with a complete action plan to repay in full, may get some positive response from the lender. You do need to try hard to get a more palatable interest rate and perhaps if you try that line with the lender, you may have more success.

Keep in mind, they owe you nothing, they hold the cards, so you need to approach in that manner.

inmypocketnottheirs

What are the chances that we will never hear from the OP again!?!?!

MABLE

inmypocketnottheirs wrote: »

What are the chances that we will never hear from the OP again!?!?!

Well we are in the silly season