Help! Unaffordable loan advice

poppasmurf_bewdley

A Consolidated Loan is usually the course of last resort.  I know, I've been there, done that and got the T-shirt. Consolidation Loans are usually more expensive than normal loans because the lender knows your situation.

It may be that at the end of the day, bankruptcy may be the best thing for you, but only you will know this.  

Sarsibob1

I guess the main question is

What were your outgoings prior to the loan being taken (32k of debts)
what were your outgoings after the loan was taken (with 25k of debts being settled and 7k of the old debt remaining)
Was the interest rate on the new debt lower than the interest rates on the debts being cleared?

If post consolidation your outgoings were lower than before the consolidation then I don't see how this is admirals fault. Similarly if you told them you were going to pay off debts and didn't do it then again I don't see how that is their fault.

ManyWays

If post consolidation your outgoings were lower than before the consolidation then I don't see how this is admirals fault
The fact that outgoings were lower does NOT mean they are affordable as they may just be a bit less unaffordable. This is pretty common with consolidation; what sounds cheaper is not in practice manageable, so the cards are used again to get by. 

Sarsibob1

But using the op's figures

They were paying £1000 a month for 25k of borrowing before admiral got involved
Now they are paying £711 a month for 25k

The 25k borrowing existed before admiral got involved just owed to another provider at a more expensive payment. By lending them 25k and consolidating their debt the op owes the same money just at £300 a month cheaper than they would have done previously. It isn't new debt (unless the op didn't pay off the debt as they were supposed to)

ManyWays

It is a new loan from Admiral and so Admiral should have checked that the borrower could afford to pay £711 a month if they used the loan to consolidate.  

This may have been affordable, but its easily possible that it wasnt, as the poster said "when I took my car and other loans I was earning almost double my wage so got into a little pickle! "
In which case the borrower may win an affordability complaint. 

Sarsibob1

but if admiral had said no then the poster would have been left paying £300 more a month - how does that scenario make things more affordable?

ManyWays

Sarsibob1 said:

but if admiral had said no then the poster would have been left paying £300 more a month - how does that scenario make things more affordable?

Because then the poster could have looked at other options such as a debt management plan that gets all the interest stopped. 

There is nothing in the regulators' rules that says its ok to give someone an unaffordable loan just because it isn't quite as bad as the previous cards. If this is what happened, then Admiral should not have given the loan the the poster may win their complaint.

retiredbanker1

If I have read the whole story - Admiral refused the first application so the OP must have appealed - the lender asked for additional information which was submitted and they agreed to the loan.
This manual intervention makes the OP's claim less ''truthful'' to me unless of course there were porkies told on the application.

I do hope the OP gets a resolution but claiming unaffordability IMO is a bit strong.