Mis-sold overdraft advice

dg1990

I'm currently 26. When I was 19, I had been with my then girlfriend of 4 year and was wanting to propose to her. It was her dream to go to New York and I wanted to take her there and propose there. I was a little strapped of cash, but I had a full time job and made an appointment with Lloyds TSB (my bank at the time) to look at getting a small loan. I realise now, it was stupid, but at the time I was young and in love.

When I was at the appointment I spoke to the woman about a loan and she advised me it would be a better for me to get an overdraft because I could "bump it up" online if I ever needed more - even though I insisted that I would prefer to get a loan. After a good 30-40 minutes, I had been convinced to get an ovedraft which she opened up at £1000 - bare in mind I only wanted a £500 loan.

Things then happened which I don't wish to discuss, and I ended up splitting up with my girlfriend and I went off the rails. Ended up putting the overdraft up online to a limit of £3500. I always had that in the back of my head from what the woman told me. And I know I wasn't forced to put it up, I hold my hands up and say my actions were stupid but I didn't even want it in the first place. Giving a 19 year old the ability to just put his overdraft up and up isn't doesn't really seem responsible. In the end, I got myself into a position where I was too much in debt, getting so much money taken off me for late payments that I ended up suidical and tried to take my own life.

When I've spoke about it to people lately, I've been told they think I was mis-sold the overdraft. I was wanting to get advice from some of you to see whether I have? If you have any questions, fire them across.

[Deleted User]

It doesn't seem like mis selling, but rather mis use.

eskbanker

dg1990 wrote: »

Giving a 19 year old the ability to just put his overdraft up and up isn't doesn't really seem responsible.

At what age would you consider an adult to be financially responsible (in a legal sense)?

dunstonh

Giving a 19 year old the ability to just put his overdraft up and up isn't doesn't really seem responsible.

At 19 you can have children, enter into contracts, drive a car, have employment etc. All sorts of responsibility. The law says you are responsible at that age.

When I've spoke about it to people lately, I've been told they think I was mis-sold the overdraft.

It is very hard to be mis-sold debt as it takes two to tango. The bank didnt make you spend the money. You did. Who are these other people as what they are saying is not generally matching the outcomes being seen with similar complaints?

If you are in financial hardship, you can make the bank aware of this and ask for help. They will consider your situation and if they agree you are in hardship, they will often refund some charges or suspend future charges and put in place a debt repayment plan. However, that is not the same as mis-sale.

dg1990

The point is, I didn't want the overdraft. I wanted a loan, which would have made easier for paying off and was tripped into making a decision for an overdraft. It's like going to the shop for milk and coming back with a loaf of bread because the store clerk told you bread was just the same. That's how it was made out to me.

[Deleted User]

If I wanted milk, and the shop only had bread, I wouldn't buy bread.

Silvertabby

“ Giving a 19 year old the ability to just put his overdraft up and up isn't doesn't really seem responsible.
”

At 19 you can have children, enter into contracts, drive a car, have employment etc. All sorts of responsibility. The law says you are responsible at that age. Posted by dunstonh

At 19 (actually 18) you can join the Armed Forces and give your life for your Country.

At 19 you are an adult and perfectly capable of making your own decisions.

IAmWales

dg1990 wrote: »

The point is, I didn't want the overdraft. I wanted a loan, which would have made easier for paying off and was tripped into making a decision for an overdraft. It's like going to the shop for milk and coming back with a loaf of bread because the store clerk told you bread was just the same. That's how it was made out to me.

It is actually easier to pay off an overdraft than it is a loan, the latter would occur an additional cost. All you needed to do was deposit the amount owed in your current account.

I bought my first house at nineteen, with the option to borrow more if needed. Are you suggesting I should complain that the bank gave me the opportunity to get on the housing ladder?

eskbanker

dg1990 wrote: »

When I was at the appointment I spoke to the woman about a loan and she advised me it would be a better for me to get an overdraft because I could "bump it up" online if I ever needed more - even though I insisted that I would prefer to get a loan. After a good 30-40 minutes, I had been convinced to get an ovedraft which she opened up at £1000 - bare in mind I only wanted a £500 loan.

The bank could quite legitimately have said "we aren't prepared to offer you a loan but we will agree to an overdraft" (they were under no obligation to offer either), but since you say you were convinced that you should have the overdraft by someone saying it was a better choice (rather than being told it was the only option) then it's difficult to see why this would be mis-selling?

meer53

You could have said " i don't want an overdraft, i want a loan " ? And you made the decision to increase the overdraft. It wasn't missold, no bank will agree with you on that.

-taff

Not missold.
There's nothing to say if you had a loan you wouldn't have asked for a bigger one, and then a bigger one....
You spent the money and then you asked for more again.

Your responsibility.