Irresponsible borrowing/lending

clb1979

Hi all, first post so hope I’m in the right place.
I managed to get myself in a lot of debt, then ended up borrowing more and more to survive and pay off the debt each month. I’ve not paid anything or spoke to any of my creditors for 3yrs now, I’ve had a letter from one saying they are now proceeding with court action. This one is a £20k loan, at the time the loan was taken out I already owed £30k on credit card/loans. I just couldn’t afford repayments so I defaulted on everything and stuck my head in the sand.

I know it’s completely irresponsible of me but do I have a case for irresponsible lending as there was no way I should have been given a loan with the debts I already had. Income at the time was £42k, 2 dependants, £750 rent.

TripleH

Were you asked to prove your income?

What was the reason you gave for borrowing the money?

Did you give the lender a full breakdown of all your financial commitments at the time of taking out the loans?

The problem with arguing 'irresponsible lending' is that if 'you' omitted information that could have changed the lender's approach to giving you the funds, your argument falls flat on its feet.

You would be better contacting a charity like Stepchange to work out a way of getting out this situation. If you fail in your claim for irresponsible lending all you will have done is kicked the can down the road and will have a more disgruntled lender to deal with.