Irresponsible lending-FOS

fatbelly

MikeJXE said:

Not sure why I'm looking at this but it intrigued me

Are you actually saying people borrow money then blame the company for lending it to them ?

Can't get my head round that 

Here you go, Mike ... and superbigal. This is how it works

https://debtcamel.co.uk/affordability-complaint-credit-record-faqs/
https://debtcamel.co.uk/payday-loan-refunds/

Clive_Woody

MikeJXE said:

martinjn said:

I started off with Barclays and while doing so realised that most of my other creditors shouldn't have lent me money either so I've raised all mine separate. 

FOS upheld my Barclays complaint just this week but I think I'll be rejecting it as I don't agree with the outcome the FOS has put forward.  I think I'll be moving on to the small claims court now. 

Not sure why I'm looking at this but it intrigued me

Are you actually saying people borrow money then blame the company for lending it to them ?

Can't get my head round that 

Pretty much. They borrow money that they know they can't afford to pay back, but this is the lenders "fault" apparently as they shouldn't have approved the application. 

I struggle to understand this mentality too. Taking responsibility for your own actions seems to have gone out of the window.

superbigal

fatbelly said:

MikeJXE said:

Not sure why I'm looking at this but it intrigued me

Are you actually saying people borrow money then blame the company for lending it to them ?

Can't get my head round that 

Here you go, Mike ... and superbigal. This is how it works

https://debtcamel.co.uk/affordability-complaint-credit-record-faqs/
https://debtcamel.co.uk/payday-loan-refunds/

Not 100% clear to me.  In a couple of words.  Does every actual penny of all loans themselves have to be paid back.  
Ie you borrow £10000 in total.   Interest and charges were horrific totalling say another £30000.
You pay back say £5000 and then file complaints. 
Your complaints are all upheld.
Do you still have to pay another £5000 ? and it is just the interest/charges you have not actually repaid that gets compensated/written off.

nyermen

From what I've heard, repayment of capital is still required, its the interest & charges that are refunded.  But i'm sure there have been exceptions.

MikeJXE

superbigal said:

fatbelly said:

MikeJXE said:

Not sure why I'm looking at this but it intrigued me

Are you actually saying people borrow money then blame the company for lending it to them ?

Can't get my head round that 

Here you go, Mike ... and superbigal. This is how it works

https://debtcamel.co.uk/affordability-complaint-credit-record-faqs/
https://debtcamel.co.uk/payday-loan-refunds/

Not 100% clear to me.  In a couple of words.  Does every actual penny of all loans themselves have to be paid back.  
Ie you borrow £10000 in total.   Interest and charges were horrific totalling say another £30000.
You pay back say £5000 and then file complaints. 
Your complaints are all upheld.
Do you still have to pay another £5000 ? and it is just the interest/charges you have not actually repaid that gets compensated/written off.

superbigal said:

fatbelly said:

MikeJXE said:

Not sure why I'm looking at this but it intrigued me

Are you actually saying people borrow money then blame the company for lending it to them ?

Can't get my head round that 

Here you go, Mike ... and superbigal. This is how it works

https://debtcamel.co.uk/affordability-complaint-credit-record-faqs/
https://debtcamel.co.uk/payday-loan-refunds/

Not 100% clear to me.  In a couple of words.  Does every actual penny of all loans themselves have to be paid back.  
Ie you borrow £10000 in total.   Interest and charges were horrific totalling say another £30000.
You pay back say £5000 and then file complaints. 
Your complaints are all upheld.
Do you still have to pay another £5000 ? and it is just the interest/charges you have not actually repaid that gets compensated/written off.

I wasn't talking about loans as such but more about borrowing in general ie credit cards

Look around MSE the hundreds of people with high credit card debt, I mean £17,000 and such

Half a dozen credit cards maxed out

It's not the fault of the companies lending you the money, thats what they are there for, it's the  shear stupidity of over spending

Don't tell me it's all to do with the crisis we are going through, everyone with half a brain should know if they can afford to buy that or not.

I'm not making it up because My own son ramped up his debts to £48,000, started on credit cards and the a loan to pay them off which he didn't. I have bailed him out numerous time over his 34 year life. No more !!!   Luckily My granddaughter agreed to house her father and mother free while they pay their debts off

I go to visit them every weekend and the amount of Amazon packages I keep seeing leads me to believe the spending hasn't stopped. The were due to be out by October last year that got pushed on to Christmas which has now been pushed back to July 2023, now they are talking of going to Lanzarote for next Christmas 

Can't people stop spending ?????

silvercar

Can't people stop spending ?????

Some people can't as it is an addiction.

Remember also that there will be some people who have taken out credit cards to cover essentials when they have hit hard times. Or to cover a short term income gap that has escalated to a long term problem. 

sourcrates

Bad lending decisions by banks is nothing new, when I was 18, a while ago now granted, I was bombarded by Barclaycard literature telling me I was "pre approved" for a credit limit of £6000,00.

All I had to do was sign and return the enclosed form, and me, being young and stupid did just that, the card arrived a few days later, then the PIN, and I thought, "let the games begin", and they did.

At that time I was just starting my first real job, after being on various YOP schemes, my wage was £35 per week.

Barclaycard did no financial checks on me whatsoever, my credit file would have been very thin as well at that time, but this was how they operated back then, and not just Barclaycard, a lot of the credit card and catalogue companies did business like this.

Over the years tighter regulation followed, but it wasn`t until the 2000`s when payday loans were at there peak, that the FCA acted to stop this bad practice altogether, although it`s not been totally eradicated, but lenders are much more careful now, and perform due diligence much more effectively then ever before.

In my experience, when people get into unaffordable debt, there very first reaction is to try to borrow their way out of it, hence the repeated payday loan saga, but it happens with bank loans as well, there full situation may or may not be apparent to a lender, for example, you can be in serious debt, but not have any missed payments to date, as you may have been paying the bills from savings, or from other accounts that do not show on credit files.

I don`t blame the banks entirely, its 50/50 in my opinion, mostly anyway, as there are always gong to be those people who just cannot help themselves.

These complaints, if upheld, can vary in the redress granted, most will have to repay the capital borrowed, although some only up until the date of the complaint, all should get interest and any charges refunded, some will get the entire entry expunged from their credit file, it varies according to circumstances.

dackster86

Hey

just need some advice, I had a few debts that I was paying through step change and these were to debt collectors. I took the original loan company’s to the FOS and won my cases. There were outstanding balances at the end of sorting the complaints. These debts are still with the debt collectors, I have stopped paying through step change and about to set up a payment plan with the collectors. But can these debts still be enforced legally, as by FOS said I should never should have had the loans. I mean if I don’t pay can debt collectors still take me to court

LeRedoute

Whether you should have been lent the money or not isn't really relevant, you were and that's that.  As a result, at a minimum you need to repay the capital. It's a bit much to expect them to just give you money.

As long as they're abiding by the FOS decision, and it appears they are, everything is good.

LeRedoute

sourcrates said:

Bad lending decisions by banks is nothing new, when I was 18, a while ago now granted, I was bombarded by Barclaycard literature telling me I was "pre approved" for a credit limit of £6000,00.

All I had to do was sign and return the enclosed form, and me, being young and stupid did just that, the card arrived a few days later, then the PIN, and I thought, "let the games begin", and they did.

At that time I was just starting my first real job, after being on various YOP schemes, my wage was £35 per week.

Barclaycard did no financial checks on me whatsoever, my credit file would have been very thin as well at that time, but this was how they operated back then, and not just Barclaycard, a lot of the credit card and catalogue companies did business like this.

Over the years tighter regulation followed, but it wasn`t until the 2000`s when payday loans were at there peak, that the FCA acted to stop this bad practice altogether, although it`s not been totally eradicated, but lenders are much more careful now, and perform due diligence much more effectively then ever before.

In my experience, when people get into unaffordable debt, there very first reaction is to try to borrow their way out of it, hence the repeated payday loan saga, but it happens with bank loans as well, there full situation may or may not be apparent to a lender, for example, you can be in serious debt, but not have any missed payments to date, as you may have been paying the bills from savings, or from other accounts that do not show on credit files.

I don`t blame the banks entirely, its 50/50 in my opinion, mostly anyway, as there are always gong to be those people who just cannot help themselves.

These complaints, if upheld, can vary in the redress granted, most will have to repay the capital borrowed, although some only up until the date of the complaint, all should get interest and any charges refunded, some will get the entire entry expunged from their credit file, it varies according to circumstances.

At least we finally get a backstory to the chip you have on your shoulder.

Even now though, it's someone else's fault. I'd have thought a bit of time and wisdom with age would have seen you take some responsibility but obviously not.

It's rare that I see people like that ever thrive, they're too busy blaming everyone else for their own mistakes.

It's a shame really.  They could do so much better for themselves without the victim complex.