Missold loan underage - Advice

Enterprise_1701C

So you took no advice from anywhere else? Where were your parents in this? Apologies if you were an orphan at the time.

Why did you need a loan of 17K? Were you working?

As others have said, it is not illegal for someone to lend money to a 17 year old.

Now, it might be worth asking if you had PPI for that loan.

ViolaLass

You knew all the facts so I don't see how it was 'mis-sold'.

What did you do with the £17k?

AmbRob

I’m not sure why you wouldn’t believe this. I was 17, walked into a bank to pay a cheque. I was persuaded by the manager to take out a loan which I did not need and he changed my date of birth to get the loan through (or more likely his commission). It was unethical if not illegal. I had no full time work. I was under the legally responsible age.

Please don’t think I’m defending myself here but I was asking for advice. As an adult I take full responsibility for my current position and can only work to improve that, however I can’t believe an institution should be able to get away with such practice. This isn’t about an individual at the bank, it’s about the practice and what they would do to lend money to anyone.

What did I do with it? I did what any stupid 17yr old would do with that amount of money. I wasted it and have been paying the price since.

If you can claim for mis sold PPI or pension advice, then my question was is there something that can be done about a financial product created by fraud by the bank.

I paid that loan off - but only by borrowing more in future years, which has snowballed. I’m dealing with that (trying to) but am looking to know if I have any rights from the original loan that got me here

Thanks

[Deleted User]

AmbRob wrote: »

am looking to know if I have any rights from the original loan that got me here

Yes, you have the right to complain that you were mis-sold this loan. However, almost two decades later, what evidence do you have for your allegations bearing in mind that it is NOT illegal to lend to a 17 year old? Do you have original documentation clearly showing your age was changed by a Bank employee? Or, be honest, did you perhaps tell the Bank you were older? You say this was the original basis for struggling financially all your adult life, but can you evidence this? Have you genuinely been in spiralling debt for twenty years?

In any case, I would expect any complaint direct to the bank to fail through lack of evidence and any court action (were it not time-barred) would require even more compelling evidence.

You might be better off spending your time seeing a debt counsellor or posting on the "Debt-Free Wannabe" section of this forum:
https://forums.moneysavingexpert.com/forumdisplay.php?f=76

Nasqueron

AmbRob wrote: »

I’m not sure why you wouldn’t believe this. I was 17, walked into a bank to pay a cheque. I was persuaded by the manager to take out a loan which I did not need and he changed my date of birth to get the loan through (or more likely his commission). It was unethical if not illegal. I had no full time work. I was under the legally responsible age.

Bank staff were rarely, if ever, on commission personally.

It was not illegal, it may be foolish to lend to a minor given the debt isn't enforceable and your situation but it's not banned.

Why did you agree to take out a 17k debt if you didn't need it?

AmbRob wrote: »

If you can claim for mis sold PPI or pension advice, then my question was is there something that can be done about a financial product created by fraud by the bank.

I paid that loan off - but only by borrowing more in future years, which has snowballed. I’m dealing with that (trying to) but am looking to know if I have any rights from the original loan that got me here

Thanks

It's not illegal or indeed fraud to lend to someone under 18, are you sure they actually changed the date of birth given your details were recorded on all their systems?

dunstonh

I did not need and he changed my date of birth to get the loan through (or more likely his commission).

Loans were not targetted by banks on the staff members. Commission was not payable.

It was unethical if not illegal.

What you are alleging is fraud. Fraud is an offence which can result in imprisonment. Certainly an instant dismissal as a minimum.

The bit we are struggling with is why any bank manager would do this when there is no gain to them and no reason for them to do so as they can lend money to under 18s (typically only done where the parents are also customers and of good standing with the bank). Would a bank manager risk fraud for something that gives them absolutely no gain.

I paid that loan off - but only by borrowing more in future years, which has snowballed. I!!!8217;m dealing with that (trying to) but am looking to know if I have any rights from the original loan that got me here

That's a problem. Unless the lending is with the same bank. The later lending is enforceable as you were an adult then. However, if there is an identifiable chain of loans, then there is still scope in the complaint.

You can raise a complaint with HSBC. The evidence is likely to be limited and credibility could be called into play. However, it doesnt cost you anything to raise a complaint with them. So, you cannot lose out by doing so. However, do remember that you are making an allegation of fraud. The police may become involved. As a 17-year-old, at the time, that would not be a problem for you. However, they may interview you as a witness.

AmbRob

I'm unsure as to what would motivate a bank manager to do what he did. This is my point. I went in to the branch as a 17yr old to pay a cheque. I was ushered into a room, my details were falsified by the bank manager in order to give me a loan I could not afford nor need.

I was instructed by the bank manager at the time that what he was doing was fine - unless I failed to pay back the loan. I was 17 and put in a bad situation wrongly by the bank for their benefit.

I take full responsibility for not sorting my finances in adult life, however with £17k hanging over in new loans and debts I took on, I was never able to fully recover and hold the bank partly responsible for their actions.

Although I do not have the original loan application paperwork as this was all done on the bank computer by the bank manager, I do still have bank statements from 2000 that have the payments I made to the bank with account numbers and also payment protection fees attached to them - 2 monthly payments I have found with "Loan Protection" are £300 and £500 each.

I cannot emphasise enough that this was a deliberate act by the manager to falsify my date of birth. I did not ask for or instruct them to do so. I was unaware of what was happening at the time. I had been a member of the bank since a child so they all knew my date of birth and details. I was on my own. No guarantor or otherwise.

I would be interested in the name of an independent law firm who may be able to advise me on this matter if possible.

dunstonh

I would be interested in the name of an independent law firm who may be able to advise me on this matter if possible.

You would have to pay them out of your own pocket. The complaints process is free of charge to use. So, there is no need to use a legal firm.

Nasqueron

You can get a free 30 minute consultation at many law firms but realistically they are not going to take on a case of you borrowing money because they aren't going to make any money out of it, you'd have to pay them to do it and to what end?

I do not understand why you keep on about this fraud, if you know the manager deliberately put the date on wrongly (given you had banked with them for ages and knew the correct date) why did you sign for it? Why did you not report this fraud? Why did you get a 17,000 loan for no reason at all? Why did you even agree to it? If I went to the bank and they said they'd give me a loan for that much money I'd just say no as I have no need for the money and repayment would be expensive.

[Deleted User]

AmbRob wrote: »

I would be interested in the name of an independent law firm who may be able to advise me on this matter if possible.

Google one. Nobody here can refer you as that would be against forum rules. With a total lack of any evidence, I wouldn't expect any decent firm to agree to take on your case anyway.

One last query, where were your parents (or guardians) during all this? Did they act as guarantors of this loan? If not, on what basis were you allowed to borrow so much with little or no credit history? Are you also alleging the Bank also falsified that?

You really are wasting your time with this...