Lloyds bank lending

saker75

lincroft1710 wrote: »

So are Lloyds solely to blame for this situation?

See my response above, in bold.

Both parties have responsibilities. LLoyds will of course hold my partner to account. Who holds Lloyds?

meer53

Lloyds are in no way responsible for your OH's borrowing, he did that all by himself. They ask if you would like a higher credit limit, if you can't afford to repay it, then you say no thanks. It's not difficult. Most card issuers these days send letters if you're just making minimum repayments.

saker75

I disagree. Banks / Lenders cannot abdicate responsibility. They should not be offering amounts at such a level that it could never be paid back - virtually a whole year's salary. That is not acceptable.

I accept my partner's responsibility but to say the bank has none, or has so little as to be covered by tokenistic letters, I also feel is wrong. Personal debt is at dangerous levels again and there has to be a greater response than that.

A £15k credit limit on a salary of £17k is irresponsible on both sides.

Gavin83

Sorry just to be clear what are you asking here? Are you trying to see if there is way out of the debt by blaming the bank or are you just venting?

[Deleted User]

saker75 wrote: »

I disagree. Banks / Lenders cannot abdicate responsibility. They should not be offering amounts at such a level that it could never be paid back - virtually a whole year's salary. That is not acceptable.

I accept my partner's responsibility but to say the bank has none, or has so little as to be covered by tokenistic letters, I also feel is wrong. Personal debt is at dangerous levels again and there has to be a greater response than that.

A £15k credit limit on a salary of £17k is irresponsible on both sides.

Sorry, but who are you to decide that for the entire population?

If I DID want to borrow 15k when my salary was only 17k, what business is it of yours? As long as I agree to pay it back, what harm would I be doing you?

Unless someone had your partner's arm up his back when the offers came in, or marched him to the shops and forced him to spend money he didn't have, buying things he couldn't afford, I'm not exactly sure what you are getting at here. Despite what you say, you do seem to be spreading the 'blame' - and with blame goes responsibility. Are you sure you are not looking for support to in some way help your partner avoid his responsibility?

I have a credit limit of more than 10k (which I know I will never use) and my current credit card balance is less than £50 - if I decide to run amok and batter the credit card balance up to the full 10k, will that me my "fault" or the bank's?

In this case one person's debt - your partner's, freely entered into - is another person's income, either in the form of a salary or a dividend, or even a tax on profits.

(Disclosure - I own shares in Lloyd's, bought well after the 'crash', so without wishing to be unduly harsh, I'd be greatly obliged if you would ensure that your partner pays up :cool:. That approximate 6% dividend that I'm expecting this year has to come from somewhere.)

WR

saker75

Gavin83 wrote: »

Sorry just to be clear what are you asking here? Are you trying to see if there is way out of the debt by blaming the bank or are you just venting?

All of my posts have expressly stated that we are paying the money back.

This is a "vent" about the lack of safeguards.

meer53

saker75 wrote: »

I disagree. Banks / Lenders cannot abdicate responsibility. They should not be offering amounts at such a level that it could never be paid back - virtually a whole year's salary. That is not acceptable.

I accept my partner's responsibility but to say the bank has none, or has so little as to be covered by tokenistic letters, I also feel is wrong. Personal debt is at dangerous levels again and there has to be a greater response than that.

A £15k credit limit on a salary of £17k is irresponsible on both sides.

How would the bank/lender know that it could never be paid back ? You say your partner has had the card for years, how do they know he only earns £17k ? For all they know, he could be on £50k + The person responsible for your partners debt is your partner. Credit limits are just that, limits. They' aren't targets.

saker75

The OFT guidance is that banks must make a reasonable assessment of the ability to repay debt. Given that Lloyds have the full picture of my partner's financial affairs, I don't believe they did this.

I can bail him out. But this much happen an awful lot to those that have nowhere else to turn.

We saw so many lose their livelihoods before the last crash and it seems we have learnt nothing from it. Consumer debt is still too easy.

saker75

meer53 wrote: »

How would the bank/lender know that it could never be paid back ? You say your partner has had the card for years, how do they know he only earns £17k ? For all they know, he could be on £50k + The person responsible for your partners debt is your partner. Credit limits are just that, limits. They' aren't targets.

Because a cursory look at his current account will tell them what he earns and what his outgoings are. Yes of course he may have additional income elsewhere but the bank should at least check.

meer53

It's really down to the person borrowing the money to take responsibility for spending money they can't repay. Why did your OH accept the limit increases if they were struggling to pay what they had already spent ? Lloyds haven't forced him to accept them, nor have they forced him to spend it.