overdrafts and personal loan

another_worried_mum

My son has been given 2 current accounts, both with £2,500 overdraft limit and a personal loan for £7,000 (+£3,000 interest) all from the same well known high street bank (not sure if I am allowed to say which one). He has spent it all.
He is now receiving demands for payment and a default notice.

He has never had regular employment since leaving school 2 years ago and I would like to know if the bank has an obligation to ensure the people they lend money to can repay.

Freddie_Snowbits

I suppose it is a little late to teach him how to look after money, though I suppose you could start with the school, who have obviously failed to teach him arithmatic.

jonesMUFCforever

As an adult he must have been pretty convincing that he could repay his debts when he took them out.

What did he put down as income when applying for the loan?
Has anything changed recently?

ANY_CHANCE

another_worried_mum wrote: »

My son has been given 2 current accounts, both with £2,500 overdraft limit and a personal loan for £7,000 (+£3,000 interest) all from the same well known high street bank (not sure if I am allowed to say which one). He has spent it all.
He is now receiving demands for payment and a default notice.

He has never had regular employment since leaving school 2 years ago and I would like to know if the bank has an obligation to ensure the people they lend money to can repay.

Things can spiral easily out of control its a hard lesson to learn, alot of us have been there, Im not a financial excpert but perhaps he should take action now? making a plan of how to make affordable repayments. Perhaps taking on extra work and come to agreement with lender? Get an account without and overdraft facility. Ask them to stop charges being put on the account? Its worth a try these are a few things i have had to do
Contact someone like cccs or citizens advice who help you to work out how much you could pay and will speak to the lenders. They will also give you good unbiased advice