Mr Lender - Lending after request to "never lend"

jamesjenkinsyates

A friend of mine with gambling problems and a previous record of getting over 20 payday loans (from various places) got themselves into the clear and asked Mr. Lender to "cancel my account and never lend to me again", they confirmed the receipt of this email and confirmed that their account had been "achieved".

However when they were gambling and were down £9k+ they asked Mr. Lender via a phone call for a £750 loan. Mr. Lender asked if she had gambling problems and she said no. They issued the loan, despite being asked to never lend to her again with ridiculous interest.

Consequently she lost all of that money gambling.

Is there anything that can be done? Is this responsible lending? Is it treating customers fairly?

Thanks in advance.

DCFC79

I see both parties at fault, your friend for answering "no" and Mr Lender for granting the £750 loan.

Could try complaining, might not go anywhere.

iolanthe07

Your friend seriously needs help. She lied to Mr. Lender and they are in business to lend (their name gives it away). She should contact Gamblers Anonymous urgently.

jamesjenkinsyates

Any ideas on what the FOS would think? Regarding the request to never lend to her again?

bebewoo

She did lie to the lender by saying that she did not have a gambling problem.
How were they meant to know she was a gambler and a liar, they do not have the time and resources to look at the mental stability of their applicants. (Not that I like lenders at all.)
Do you think that they should also ask applicant to submit to drugs tests in case they spend the loan on drugs?
I don't think it is the lender's responsibility to police the addictions of loan applicants.

~Brock~

jamesjenkinsyates wrote: »

A friend of mine with gambling problems and a previous record of getting over 20 payday loans (from various places) got themselves into the clear and asked Mr. Lender to "cancel my account and never lend to me again", they confirmed the receipt of this email and confirmed that their account had been "achieved".

However despite having kicked the gambling habit they needed to borrow some money for car repairs and they asked Mr. Lender via a phone call for a £750 loan. Mr. Lender pointed out that she has had gambling problems in the past and that they have been asked not to lend to her again. They refused to issue the loan, despite being advised that her gambling days were over.

Consequently she hasn't been able to get a loan.

Is there anything that can be done? Is this responsible lending? Is it treating customers fairly?

Thanks in advance.

I have amended your original post from the perspective of if the lender had refused to lend. Assuming your friend had genuinely kicked the habit and was actually telling the truth when they asked the question, but refused to lend the money, there would probably be equal cause for complaint in her opinion.

The point is, they did act responsibly by asking about the gambling addiction. Your friend lied to them.

Lenders are in a complete no win situation half the time because nobody seems to be able to take any form of responsibility for their actions nowadays.

Pixie5740

Why is the emphasis of your OP to assign blame to Mr Lender? Your friend chose to gamble. Your friend chose to apply for a loan. Your friend chose to lie to Me Lender to get a loan. Do you see where I'm going with this?

I've never heard of asking a lender not to lend money to you before. I always thought the onus was on the borrower not to apply for the loan/credit card if they didn't want the credit.

Your friend needs to take responsibility and you're not helping by shifting the blame to Mr Lender. I believe there is software available that prevents gambling addicts accessing gambling sites online which is something you could look into if you want to help your friend. She needs to contact GA.

[Deleted User]

jamesjenkinsyates wrote: »

Any ideas on what the FOS would think? Regarding the request to never lend to her again?

Problem you'll have is no request to self exclude is forever.

A gambling side of a newspaper only does a season, not forever, for those who self exclude
http://www.gamblingcommission.gov.uk/FAQs/Problem-gambling/Customer-cancelling-self-exclusion.aspx

Add to that the constant changing regulations for the payday loan industry alone - isn't it another gamble - time better spent on throwing funds at the loan to save on the "ridiculous interest" now they do allow that, extremely generous of them - some other lenders you wouldn't get that luxury.

If your friend can't stop gambling, (because it's so cruel) - look into insolvency measures, because complaints aren't exactly going to help here.

andyfromotley

Yes its irresponsible lending.

Its also irresponsible borrowing.

Will your friend get the loan cancelled/written off? I doubt it.

As someone who spent many years in the death grip of a gambling addiction, and listened to the stories of hundreds of others in GA meetings there is nothing that most gamblers won't do or say in order to get money to gamble.

Your friend is ill and needs help and support. I hope they can find the path to a gambling free and happy life. For the vast majority of compulsive gamblers the only realistic option is GA. There is a friendly ear and a warm welcome at a meeting near them. I wish them good luck.

poppasmurf_bewdley

jamesjenkinsyates wrote: »

A friend of mine with gambling problems and a previous record of getting over 20 payday loans (from various places) got themselves into the clear and asked Mr. Lender to "cancel my account and never lend to me again", they confirmed the receipt of this email and confirmed that their account had been "achieved".

However when they were gambling and were down £9k+ they asked Mr. Lender via a phone call for a £750 loan. Mr. Lender asked if she had gambling problems and she said no. They issued the loan, despite being asked to never lend to her again with ridiculous interest.

Consequently she lost all of that money gambling.

Is there anything that can be done? Is this responsible lending? Is it treating customers fairly?

Thanks in advance.

It's certainly irresponsible borrowing. And the borrower lied to the lender by denying they had a gambling problem.

People who borrow money have as much a responsibility of care as does the lender. It's not one sided.

robatwork

jamesjenkinsyates wrote: »

Is there anything that can be done? Is this responsible lending? Is it treating customers fairly?

Yes - get your friend some help
Yes
and
Yes

Hope this helps.