Barclays loan advice

Treyr

Hi, wondering if anyone can help me with this. My son has a gambling problem and managed to take out 5 separate loans out with Barclays within a few months of each of one. All to fuel his gambling problem. He also took out a couple of payday loans. I didn't know about any of this.
He has depression and anxiety, has attempted suicide because of his debt. He's a student, is out of work now because of his mental health.
Barclays put his debt on hold, but that date is coming to an end soon. My question is, should a bank be able to allow someone to take that many loans out in the first place? He was working part time when he took them out but it seems he rarely managed payments on any of them. Are banks accountable for irresponsible lending?
Thanks in advance.

[Deleted User]

If the borrower suggests they can afford the loans and the bank Is happy with the risk, then it's fine. After all, it is their money at stake.

MEM62

If you are looking for an argument for Barclays to write off the debt you might be disappointed. The lending decision would be made partially on the information that you son gave on the application - and it is likely that he was not truthful either about his circumstances / ability to pay or the purpose of the loan. It would also be unlikely that there was time for negative history (defaults etc) to be recorded if the loans were all taken out within a short space of time so it cannot be argued that Barclays 'should have known'.

lotteryman

Loan companies should do affordability tests and therefore, from what you have said, they should not have lent money (although your son may have lied to them)
have a look at
https://www.stepchange.org/debt-info/your-rights/irresponsible-lending-and-affordability-checks.aspx

Treyr

Thanks all. I know writing it off won't be an option, at the end of the day the debt is his fault. I was wondering if it was a valid reason to ask for further support from them, such as consolidating the loans, more manageable payments.

Pixie5740

Treyr wrote: »

Thanks all. I know writing it off won't be an option, at the end of the day the debt is his fault. I was wondering if it was a valid reason to ask for further support from them, such as consolidating the loans, more manageable payments.

The last thing he needs is more debt ie a consolidation loan.

Your son should contact one of the debt charities (CAP UK, National Debtline or Step Change) for advice. Some form of insolvency might be the best option for him as I assume that with being a student he has few, if any, assets.

MEM62

Treyr wrote: »

Thanks all. I know writing it off won't be an option, at the end of the day the debt is his fault. I was wondering if it was a valid reason to ask for further support from them, such as consolidating the loans, more manageable payments.

If your son does not have the financial resources to meet the payments in the original agreement then the bank will have no option but to negotiate anyway. They cannot take what he doesn't have.

Another important point is to ensure that he is getting help with his issues - or history may repeat itself. If you already have a clinical diagnosis sharing this with the bank may assist in soliciting some goodwill from them.

National_Debtline

Hi Treyr


Welcome to the forum. I am sorry to hear your son's having such a tough time but there is some good advice above. First and foremost looking after your son's health is the number one priority, and dealing with both his mental health and gambling issues is important. His GP and one of the charities who help people with gambling issues will be able to help, for example Gamblers Anonymous or GamCare.


I would recommend letting his creditors know he is vulnerable as this should make them more understanding about his situation. If your son needs more time to decide on his next steps he can ask Barclays to consider putting the debt on hold for longer.


If your son does consider making a complaint about irresponsible lending, make sure the information he provided was accurate first. If it was he can raise a complaint with Barclays, and if he is not happy with the response he can take his complaint to the Financial Ombudsman Service (FOS). It's hard to know exactly what information Barclays were able to base their decisions on but it won't cost anything to make the complaint.


With regards to the best way to deal with the debts I would recommend seeking some free and impartial advice from one of the debt advice agencies. Depending on his circumstances, level of debt etc, he may look at a reduced payment plan and freeze on interest or insolvency where the debts are written off.


Susie
@natdebtline

Treyr

Thank you, that's useful advice. Unfortunately mental health services are stretched and getting help has been a nightmare to be honest. He had counselling from MIND but they were a limited amount of sessions. He felt depressed first and then came the gambling as winning made him feel good.
He's also been to CAB but he wasn't honest about the amount of debt he was in. I'll certainly look in to all of the suggestions.

National_Debtline

Hi again Treyr


I'm sorry to hear it's been difficult getting the support your son needs with his mental health. You may find this debt and mental health factsheet useful https://www.nationaldebtline.org/EW/factsheets/Pages/debt-and-mental-health/mental-health.aspx. You can ask Barclays to consider writing off the debts completely due to your son's mental health.


It is important to try and give accurate information on the debt situation when seeking help, otherwise the wrong advice may be given. You can seek the advice on your son's behalf if that would be easier. You will just need to have a reasonable understanding of the situation, i.e. type of debt and rough amount owing, whether he has any assets and how much he can afford to offer his debts.


Your son may also be able to make a claim for a benefit called Personal Independence Payments (PIP). It's a non means tested benefit for people who have physical or mental health issues. Whether he qualifies will depend on how his illness affects his care and mobility needs, but it's certainly worth looking in to.


Susie
@natdebtline