Help on being misold a loan

lilfem01

Hi All,

I was looking for some advice...

I am 25 now, but when I was 18/19 I was working for IBM and very much into cars. I went to my bank, who I had banked with since I was 16 and wanted to extend my loan!! I must have been stupid!!

Anyway I was earning about £12k if that... they lent me somewhere in the region of £10k!!!!! which was what I had been accepted for. I wanted £9k (these are all rough estimates) and the lady said have another £1,000 more to put into an ISA!!!!!!!!!!!!!!!! Seriously, I must have been so thick!!! The rate on the ISA was so much less than what I had to repay in interest on the loan!

To make things worse she also said that if I died my parents would be liable!!! Ha... so silly me took out payment protection. I MADE A COMPLAINT ABOUT THIS AND DID GET THE MONEY BACK.

A few years later the loan got too much and it went to a debt agency. I pay them £50 a month for the next so many years... which isn't a problem, but it has affected my credit rating.

Would it be worth making a complaint about this loan? Surely they can't get away with that... it will be all on my records so they couldn't get out of it.

The reason I haven't done it until now as it has taken a few years to get straight again and now I feel im in a position to do something about it.

I would appreciate any thoughts you may have

Thanks
Sam

blue_haddock

So you wanted a loan, they gave you a loan and now your complaining?

Hmmmm.....

lilfem01

Sorry, maybe I didn't explain it very well... I wanted advice not sarcy comments... I really didn't expect that on my first ever post. I thought someone might give me constructive help...

I was 18 and they gave me a 10k loan - is that responsible lending? If it is then maybe I should just deal with it....

CLAPTON

In law for better of worse, 18 is the age of majority.

At the moment there is no law about responsible lending so its difficult to see how you can pursue your case in law.

And of course not everyone would agree that lending money to 18 year olds is by definition irresponsible. Some 18 year olds start businesses etc and need to borrow.

You can write to the Bank concerned setting out your situation and why you feel that lending to you was specifically irresponsible.

Possibly you could argue that it was an unfair contract and complain to the OFT but I can't see this having a realistic chance of success.

You can write to your MP suggesting a change in the law to change the age of majority or suggesting some sort of responsible lending law but the unlikelihood of a successful outcomes are obvious.

Otherwise I can't really see how you can realistically pursue this.

blue_haddock

I'm sorry chap but you've had the money, you've had the flash car and now your having to pay it back. It's called being a responsible adult.

Butlers1982

You took out a loan which you wanted?
Then you couldnt afford to pay it?
Whos fault is that?

At the end of the day, you were "an adult" and therefore shouldnt have taken out a loan that you couldnt afford.

Stop trying to blame someone else for your own mistakes

If it is then maybe I should just deal with it...

Yes you should

blue_haddock

Thank you butler1982 - always good when someone else backs up your own feelings.

Isabelle

Hi Sam

I know you were 18 at the time of taking out your loan and therefore considered an adult , but I feel very strongly about this "irresponsible" lending which seems to be happening everywhere.
My 19 year old daughter (who left home just after her 18th birthday), took out a loan for £2000 in the summer. She was too worried (I must be really scary!) to talk to us about it so she ended up getting one from Welcome Finance (a friend had recommended it). The APR ( I discovered today!) is an enormous 60.4%. Yes, 60.4!
I was absolutely flabbergasted!
She has made 3 payments and has obviously realised the error of her ways and came home for some advice. She has requested a settlement figure from them and they got back to her with £2500! More than she actually borrowed!
I am fuming at this company, not at her. She is young, inexperienced in these matters and I feel this company took advantage of her (and many other hundreds like her!).
So, although I can't help you with your claim of misselling, I just wanted you to know that I feel the same as you and there lots of sharks out there praying on the young and inexperienced (whether adulthood is considered to be achieved at 18 or not!).
Good luck with your complaint, let me know how you get on.
BTW, if anyone has any ideas of how to get my little girl out trouble, please let me know. She has applied for 2 "normal" loans but been turned down although she has a good job and no other debts.
Isabelle

PayPeanuts_2

Unfortunately there is a difference between 'irresponsible lending' and 'misselling'

If they told you the terms and conditions of the loan, and did not lie to you about what taking the loan out would entail, you have not been missold.

Irresponsible lending is rife, but then unfortunately so is irresponsible borrowing, as you have found to your cost.

That said, comments along the line of 'thats the real world laddie' don't help or explain anything, and are not really in the spirit of this forum, in my opinion.

jonesMUFCforever

I will bet with anybody on this group that if his bank has said no to his original loan request that he would have got finance from another lender.

Anyone want to take me on???

Butlers1982

Irresponsible lending is rife,

again i Presume that is in your opinion is it?

As a mortgage and loan broker, I NEVER sell a loan or mortgage that cannot be afforded.