Opinions on pre-approved loans within apps - legal

Biglints

Hi there, I'm after a bit of advice

I'll try and keep it short, but it's a bit complicated.

About 8 months ago I went into my high street bank to try and obtain a loan or overdraft. I'd got into trouble gambling and didn't know where to turn to make ends meet. I should probably add at this stage I suffer from Delusional Disorder and a mood disorder - as this makes me very vulnerable to reckless and impulsive actions - such as gambling.

I explained quite honestly to the bank employee my full situation and the reasons I needed the money. He applied online in front of me and I wasn't entirely shocked when the results came in and I wasn't approved for a loan, overdraft, ccard etc. As on top of this my credit rating is extremely low, I can't even get a wonga loan!

Fast forward 8 months and my banking app updated showing a new section of pre-approved offers. I didn't even need any extra money but whether it was curiosity, stupidity, or being deluded in some way, I applied for £1,000 and it was in my bank within seconds. Having not gambled for 6 months I now had an impulse to just use £20 on a casino app.

To cut a long story short I ended up borrowing £15,200 via my banking app over a period of days and lost every penny. It goes without saying I'm distraught.

Does anybody think I stand a chance of having the loans written off by raising a formal complaint? (Which I've done today) My argument would be under no normal loan application circumstances would I be granted approval, I'd been flatly denied credit by the same bank not long before, and had explained at the time my mental health and gambling problem. It's my belief there was no due diligence on their part, and they were giving incredibly easy access to large sums of money without the normal checks.

Im really at rock bottom over the whole ordeal and have barely eaten for days with the worry. I accept I played a part, but I'm trying to go easy on myself as looking at it objectively it's the actions of a mad man.

Thanks for reading,
Biglints

Rich7111

Right, firstly, some people on MSE will be very direct which may appear rude, my reply is not rude, but isn't going to be what you want to hear.

Firstly, to come to this forum looking for some kind of peace of mind that we are going to tell you that it's fine to borrow money, spend money and then claim it back isn't going to happen.

You have to take full responsibility and take it this way, if you do go to your bank and arrange these repayments, it will keep you on track as you wont have much or any disposable income to gamble.

Sorry about your health issues, the first thing to do before considering not paying back the money is get help for your gambling, get family and friends to help/support

You say you took out a few loans, even if they are pre-approved, you still had to complete the application which requires you to read through the terms and conditions.

The bank will acknowledge your complaint, send you a letter and will still expect payment, they are not going to say that's fine keep the £16k, I can assure you, they will seek legal action and get solicitors/debt collectors involved. You will need to concentrate all of your efforts on paying these loans back, this will help you in the long term by helping you realise what your actions have done.

Don't go blaming the bank - They lent you the money you applied for, sorry, but I won't be telling you any different, not rude, just not what you wanted to hear I guess.

I wish you well, I hope you can get things sorted.

27cool

I can think of a very good reason for you to stop gambling. You are obviously rubbish at it. If you can lose that much money, that quickly.
You obviously need help with the gambling problem.
You took out the loans, so the buck stops with you.
Take responsibility for your own actions and stop trying to blame someone else.

andyfromotley

I'm sorry but something here isnt right. If your credit history is so poor why would the bank have let you borrow any money. They refused 6 months earlier what changed in that time?

However in response to you querie, i suspect that you have virtually no chance of getting them written off. Have a go - you have nothing to lose but I wouldnt hold out much hope. If you are having difficulty repaying speak to step change.

Finally please consider attending Gamblers Anonymous where you will find a warm and welcoming ear.

Biglints

Yeah I don't think anyone is being rude or harsh. The things you say in general I wholeheartedly agree with. I'm obviously still in a slight state of shock so I think it's natural I deflect blame and look for a way out. Futile that may be, but I'm willing to face the consequences of my actions.

What I don't understand is why I was offered the pre-selected offers after an app update. No one will touch me for credit. Including the bank I eventually obtained money from.

I just don't understand the two tier system, and why money obtained in seconds through the app bypasses the usual and expected validation and checks.

[Deleted User]

Biglints wrote: »

why money obtained in seconds through the app bypasses the usual and expected validation and checks.

It doesn't. They had already been carried out.

Biglints

Deleted_User wrote: »

It doesn't. They had already been carried out.

But surely without a credit check? It seems based on my account usage.

[Deleted User]

Why surely without a credit check? You gave them permission to carry out credit checks when you opened your account.

Biglints

Deleted_User wrote: »

Why surely without a credit check? You gave them permission to carry out credit checks when you opened your account.

Mainly because I have such a low credit score, a few years back I couldn't even switch my current account to another bank

[Deleted User]

Remember that your credit score doesn't reflect anything about how a bank will rate you for risk.

It's a fictional number to cheer people up or make them sad, depending on their attitude to numbers.

Biglints

I've been reading around the forum about pre-approved loans, it seems there is no credit checks, approval is based on how much money is going through your account. Obviously, what with the gambling, my figures wouldn't be representative of my actual true earnings.
Surely that's not showing skill, care and diligence, as stated in the lenders code