Irresponsible lending - is this really bad that this company has done this?

ChillyP

Hi,

relative of mine struggles badly with mental health issues ( probably neurodiverse but no diagnosis). She’s medicated etc and struggles to make positive financial decisions when she’s struggling.

last year a finance company allowed her to take 3 loans. She complained and it was upheld in her favour with the third loan being deemed as irresponsible lending. The company agreed that they had not acted fairly. 

2 months later the contacted her and offered more credit. She was in a deep mess at that point and accepted. 

Surely a company who have already agreed that they have lent irresponsibly should not have done this to a vulnerable customer? 

Brie

Quite agree they are on shaky ground.  Has she contacted them to complain or does she actually need the loan this time?  

ChillyP

Brie said:

Quite agree they are on shaky ground.  Has she contacted them to complain or does she actually need the loan this time?  

They’ve already lent it her. They offered it and she accepted. I know there has to be some personal responsibility but I think it’s pretty shocking that they’d uphold an irresponsible lending complaint and then offer further credit 8 weeks later 

sourcrates

How much money are we talking about here?

Are they a doorstep lender along the lines of what Provident used to be?

Or is this an online outfit ??

How was she contacted, phone/email/letter?

In any case I would expect a credit check to have been performed, we may look on this at face value and think that`s bad practice, but don`t forget this is how the whole payday loan industry used to behave, take out another loan to repay the previous one, etc etc and rinse and repeat, again and again, why expect anything else?