Loan affordability help

stourbridge2410

Hello
I took a loan out 1 year ago. It was for 5 years for £40000 - £750 per month.
I used it to pay off all other debts.
The loan was just in my name. It was with Barclay's from my single account, when i logged into online banking it was under the pre-approved offers.
I have never missed a payment. My soon to be ex was paying the loan and i think he will stop very soon and i cannot afford it.
I earn £1000 per month after tax and the loan payment is £750 per month.
I have contacted Barclay's by telephone and they say there is nothing they can do.
I have been reading on The Financial Ombudsman about affordability and i don't think Barclay's should have given me that loan based on my earnings.
I have spoken to Barclay's in person can i now go straight to the Ombudsman?
Any advice would be really helpful.
Thank you in advance.

Dobbibill

When you contacted Barclays did you log a complaint?

The first steps is to log a complaint, Barclays will then have up to 8 weeks to respond.

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

Three-quarters of your income is alot to pay towards a loan.

However, if you don't think Barclays should have given you the loan, why did you apply for it?

What income did you put on the loan application?

stourbridge2410

Hello
Thank you for your reply.
I didn't log a complaint I just asked if there was anyway of reducing monthly payment.

I didn't plan on applying for it, it was under the pre approved offers.

I can't remember even having to give any details as it was pre approved. I have banked with Barclays for years and had just taken out a new mortgage with them so they know my exact income amount.

What should I write in the complaint are there any template letters.
I have never missed a payment and have been an excellent Barclays customer, will they close my bank account?

journeymanpro

So it's barclays fault you applied for a loan you clearly shouldn't have?

ViolaLass

£40k on £12k net salary is a lot. What would you have done without the loan though? Wouldn't you have been in more trouble (presumably the other debts were on higher rates).

stourbridge2410

Not Barclays fault I accepted the pre approved offer. I have made all the payments, but now cannot afford it as I am separating from ex who paid the loan.
Used it to pay off other debts. Worked out a bit more a month but would be paid off in 5 years as compared other loan interest.
Unsure what to write in letter to Barclays.

Dobbibill

stourbridge2410 wrote: »

Hello
Thank you for your reply.
I didn't log a complaint I just asked if there was anyway of reducing monthly payment.

You need to speak to the money management team, http://www.barclays.co.uk/Helpsupport/Debtmanagement/P1242557964168
it gives a number to contact them

I can't remember even having to give any details as it was pre approved. I have banked with Barclays for years and had just taken out a new mortgage with them so they know my exact income amount.

I would still think they will ask for your income. Did you combine yours and your ex's income for the application?

What should I write in the complaint are there any template letters.

Personally I don't think you have a complaint. You applied for the loan. Why do you think you have a complaint? You applied for a loan, you were accepted and lent the money.......I'm struggling to see any bank error.

I have never missed a payment and have been an excellent Barclays customer, will they close my bank account?

No, they won't close your account for struggling to pay a loan. They will mark the loan, on your CR, as an arrangement to pay if you are going to make lesser payments.

Your priorities need to be your rent/mortgage payments, food and utilities. Unsecured borrowing comes much further down the list.

I agree you need some support from them to change the payments if your circumstances have changed but don't agree you have a complaint sorry.

stourbridge2410

I would have put just my income as the loan was only in my name.
I only believe I have a case after reading this in the Financial Ombudsman website.
If we are satisfied that the lending was unaffordable when the loan was made, we consider how this has affected the consumer. This includes looking at what the loan was used for and what effect it had on the consumer's overall financial position.

Consumers who complain to us should be prepared to give us information and evidence about this, so that we can fully understand the issues and arrive at the fair outcome.

We assess the fair outcome by taking account of all the facts and circumstances of each individual case. This means there is no "rule of thumb" to assess the outcome in cases like this. Depending on what is appropriate for the individual case, we may consider one or more of the following measures as fair redress:

re-scheduling the lending onto affordable terms;
providing an interest-free period or a lower interest rate;
writing-off some of the lending;
exceptionally, writing-off all the lending.

stourbridge2410

This is from The Ombudsman Website
unaffordable lending

Unaffordable lending means lending that the consumer could not reasonably afford at the time it was taken out.

meer53

I can't see how Barclays would approve a £40k loan on a £12k salary ? Something doesn't sound right.

Caz3121

stourbridge2410 wrote: »

I used it to pay off all other debts.

stourbridge2410 wrote: »

If we are satisfied that the lending was unaffordable when the loan was made, we consider how this has affected the consumer. This includes looking at what the loan was used for and what effect it had on the consumer's overall financial position.

If you had not got the loan I am guessing you would have had to continue paying the existing debts at the previous interest rates so how would that compare to the £750 per month...I am assuming the loan reduced your payments (otherwise why take a loan to pay of cheaper debt?)
is this a secured loan?