Irresponsible Lending - Hitachi (now Novuna)

Happy_McOutsource

Hi.

My father in law has recently come to my partner and I for help regarding his credit, and has really opened up about the affordability of his commitments; we knew he’d committed to some credit and offered assistance, but we didn’t understand the circumstances fully.

One particular credit, a loan from Hitachi, is causing him issues month on month due to the high interest and thus payments each month. The main reason for this this thread to ask for views, comments and ultimately help on this one.

When he took this loan out he was already over committed on his expenditure, but tells us the process was very easy to get the loan, and no supporting documents were requested. He was in hospital at the time as unfortunately he needed to have the lower half of his leg amputated due to an infection, he was on strong painkillers and other various medication due to his ill health, at the time he took the loan. 

He was 63 at the time of the loan being taken, on disability benefits but this has recently dropped significantly due to him hitting pension age. My early thoughts are, why didn’t they take the time to request affordability confirmation in such ways as a bank statement, did they consider his income would drop dramatically in the life of the loan, where do we stand with the fact he was on strong medication at the time, which we can evidence? 

We may not have a leg to stand on (pun intended) but it would be really great to get some expert opinion.

Thanks in advance.

[Deleted User]

Most lenders take income declarations on trust and assess affordability through standard measures. To assess affordability on a individual basis would involve costs that the customer isn't willing to pay.

Unless he told the lender that he was on strong medication at the time there is no way they would have known.

Head to the DFW boards for help on cutting his costs and getting the loan paid back more quickly. That will save him interest and cost him less.

adamp87

Have a look at something like

https://debtcamel.co.uk/refunds-large-high-cost-loans/

Provided he was honest with the information he gave them then you may have a case you may not.

In regards to the crippling payments happening now you need to contact them if you haven’t already stating the situation and get some breathing space.

I’d look at someone like StepChange or
Citizens Advice too and get some
help.

sourcrates

Also keep in mind if the debt is becoming a burdon to him, he should perhaps stop paying his non essential debt repayments altogether and look at entering debt management or other solution.

He does not have to go on struggling to pay month on month, he can just stop, and look at his options.

I doubt his credit worthiness will be his highest priority right now, and debt management may be the way forward, the debt charities would advise a similar course of action in these circumstances.