Irresponsible Lending Complaint - Loan

creditcardchaos

I took out a loan in October which I feel I shouldn’t have been given. It wasn’t affordable and I was approved within minutes of applying. I had £17k os debt on credit cards and was given £12k. I have to pay back £17k including interest. Although I used it to consolidate other debts I now have an outstanding debt of £22k. 

I have only made 2 payments at this point - is it to early to complain in the hope they halt the interest?

I feel like I’m drowning. 

creditcardchaos

I should say I feel it was irresponsible lending as my bank statements weren’t checked either - no proper checks - and if they did they’d have seen I had a serious gambling addiction at the time. I was eligible for any 0% BT cards or loans as my credit score was poor. 

Thrugelmir

Why has the amount you owe increased by £5k in around 4 months? 

creditcardchaos

Thrugelmir said:

Why has the amount you owe increased by £5k in around 4 months? 

That’s including the interest on the loan. 

saker75

At this stage I suspect you need help. Speak to CAP or other organisations to help you move on from debt. 

Clive_Woody

creditcardchaos said:

I took out a loan in October which I feel I shouldn’t have been given. It wasn’t affordable and I was approved within minutes of applying. I had £17k os debt on credit cards and was given £12k. I have to pay back £17k including interest. Although I used it to consolidate other debts I now have an outstanding debt of £22k. 

I have only made 2 payments at this point - is it to early to complain in the hope they halt the interest?

I feel like I’m drowning. 

Were you entirely honest with the application and did you tell the lender the money was for debt consolidation?

Sounds like you knew in advance you wouldn't be able to repay the loan before you applied for it so it's not clear why you applied.  

y3sitsm3

creditcardchaos said:

I should say I feel it was irresponsible lending as my bank statements weren’t checked either - no proper checks - and if they did they’d have seen I had a serious gambling addiction at the time. I was eligible for any 0% BT cards or loans as my credit score was poor. 

Bank statements are not routinely checked, in fact it's extremely rare for them to be requested outside of mortgage applications.

A credit check is often all that is required and if you applied for a consolidation loan I don't think you have a leg to stand on.

Although you claim you'll have to repay £22k, what would you have repaid on your credit card over the same period had you not consolidated?I'd be flabbergasted if it wasn't significantly more.

Caz3121

How does the interest rate compare to those of the debts you paid off? Was taking the loan saving you money in repayments?

Chris_English

creditcardchaos said:

I took out a loan in October which I feel I shouldn’t have been given. It wasn’t affordable and I was approved within minutes of applying. I had £17k os debt on credit cards and was given £12k. I have to pay back £17k including interest. Although I used it to consolidate other debts I now have an outstanding debt of £22k. 

I have only made 2 payments at this point - is it to early to complain in the hope they halt the interest?

I feel like I’m drowning. 

If you are only a few months in then you won’t have accrued much interest, so asking for an early settlement and paying it back is going to be the best way to reduce how much interest you pay in total.

RogerBareford

creditcardchaos said:

I took out a loan in October which I feel I shouldn’t have been given. It wasn’t affordable and I was approved within minutes of applying. I had £17k os debt on credit cards and was given £12k. I have to pay back £17k including interest. Although I used it to consolidate other debts I now have an outstanding debt of £22k. 

I have only made 2 payments at this point - is it to early to complain in the hope they halt the interest?

I feel like I’m drowning. 

Well you shouldn't apply for loans you don't feel are affordable. Your not supposed to just apply for things and then if they are aproved assume that the bank has determined this is a good product for you. You need to take responsilbity for your finances and determine if products are affordable and ask for help/advice before you apply for things.