Help on being misold a loan

petermb_2

So back to lilfem01.
I am sorry to say that even I with my magic powers in gaining redress would have a struggle with your loan. If you didnt use a broker to get it and you already claimed back the ppi, there is very little ammo to go after them.

I am afraid that in your case you will have to live with the consequences of borrowing money, until I learn differently. Watch this space.

C32AMG

Isabelle wrote: »

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

Sorry, and I realise you will have a different slant on this because she is your 'little girl', but she was 19 and is an adult. She phoned up and asked them for a loan. They gave her the details (which would have included the APR) and she then accepted. Case closed. They did not 'pray' on her at all, SHE contacted THEM.

Sorry, that is NOT irresponsible lending. That is her being an irresponsible adult. Typical of the many people who get themselves into 'situations' like this, only to blame someone else for it.

I realise some 18/19 year olds are more immature than others, but by that point in their life all should have enough basic financial skills.

topbombing

it is a bit irressponsible fo the bank to lend you so much mney at a young age, howevr, they will have assessed you previous account history and affordability.

lets say you were on 12k a year, maybe £800 a month, youve got a 10 k loan over say 5 years, your living at home?.. on the basis of affordability then you can affford it..

look at it another way.. if you knew you could afford it and they didnt give you it on the basis of been too naive, then you would have grounds to complain!!!!

also, protection.. i am tartgetted on selling it in my role.. and i have to go through a docc (duty of care checklist!) to ensure a) your covered in other means, a b) if your not, then you need it or some cover....

i spend far too much time in my role dealing with ppl who say they wish theyd taken it out, theyve got cancer or been made redundant!!! its amazing all th ebad press it gets, yet a lot of the defaulters i deal with, wish theyd had it

PayPeanuts_2

Butlers1982 wrote: »

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.

Well of course it is my opinion. What else could it be.

I didn't mention you and whether you sell irresponsibly, so there's no need to take it personally.

Miss_Marple_2

TBH, I do get where the OP is coming from.

A few years ago, when I was stuggling to repay credit card debts, although I was keeping up, my bank asked if I would like to come in for a financial review and a look at products they had to offer. I had no idea that this actually meant 'we want to sell you a loan'

So I went in, and within a few minutes, they had sold me a £17,500 loan with a repayment significantly higher that I was paying on my debts prior to that - and also she took back £5,000 of it to pay off my credit card with them, saying that they were offering 0% on balance transfers, so she would pay off their card, then transfer from another card onto my card with them. She gave me no time to investigate the 0% deal or wonder if it was a good idea. Less than 20 minutes later I left with £17,500 of debt and was (on an available monthly income basis) a lot worse off than I was before. She wouldn't even let me use the loan to pay off the cards I wanted to.

I look back now & realise how stupid I was - but it was my stupidity. I was in a vulnerable position and I think she took advantage of that, but I could have said no. I took the money and I am paying it back. I've put a claim in to get back the PPI, but other than that I'm happy enough to pay back the loan (& interest) in full. In my PPI claim letter I did express concerns of 'over-selling' of the loan itself, and also use of what they class as 'financial review' is really just their way of selling you a loan, but I don't expect it will have any effect and I certainly don't expect any recompense to me as regards the loan itself.

jonesMUFCforever

Miss_Marple.
I have read your post and to be honest I have to say put those rose tinted glasses away!

bathgatebuyer

Unfortunately we've all made decisions in life we can regret - some of mine have also been financial ones. I took out a loan with a company called The Associates when I first graduated to help with the usual expenses of starting out on working life (deposit for flat when I moved away to work, £300 for suits / briefcase, etc). I know now that they screwed me over with PPI (insisted I took it out when I told them I didn't want it), and also denying ever receiving hand-delivered correspondence from me!

I'm angry about it now, but I'm way more angry at myself for not standing up for myself more at the time. It's only through websites like this that consumers can really educate themselves about these things, but ultimately, at 18 you can go off to war, die for your country, vote, drive a car, so you should be able to make decisions about your own financial responsibility and deal with it. Harsh, but we've probably all been there.

scootermacc

I have a lot of sympathy for your situation.

When running my own business (self employed) I asked for 2 further loans from my bank when already in debt. I had no Business Plan and no assets. The bank happily lent me the money. I subsequently and qucky fell further into debt and ended up in the vicious overdrawn penalties/charge you for this letter loop. Took 7 years to get out.

I accept that I am an adult and should make my own decisions, and I accept and stand by the consequences of bad ones (such as this). I'm not bitter about being in debt, but I feel let down by the bank in retrospect by how they dealt with me.

I question the bank's integrity in such cases - I believe there is a fine line between misselling and irresponsible lending in cases where the receiver is in a vulnerable situation - this may be their age, or their desparate need to keep their head above water (as with me). In these cases, the responsible thing to do could just be to say 'no'.

I trusted the bank then (never again). I saw them as someone to give me financial assistance. I now view them more as a selling machine.

tupperware

I think the common theme on this thread and indeed on this forum is education. How many hours do children waste in social class debating issues that only affect a minority completely ignoring financial matters which will affect 99% of people in adult life. If I am being honest, everything i've learnt about finance and consumer rights has came from this website. When I left school i'm not even sure if I knew what APR was, never mind balance transfers or PPI. Surely in the credit dependant society we live in we should be educating our kids in their rights and responsibilities as adults.

I am a firm believer in personal responsibility but I do have some sympathy for the young who are offered thousands with little education on what they are really signing up for.

scootermacc

PayPeanuts wrote: »

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.

So, if the bank verbally told you what the T&Cs are and gave you the money - but then never provided you with any documentation detailing the T&C's AND never got you to sign any paperwork, would you have a case of misselling?