Irresponsible lending? resulting in snowball bank charges effect?

davilown
davilown Posts: 2,303
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Hi

Been over to see my BIL who was diagnosed with paranoid schizophrenia in 2007. He doesn’t tell us much but whilst I was sorting out 6 years of unopened mail and documents we found he had been going overdrawn for at least the last 5 years (both an authorised and unauthorised). We asked h8m about it and he just told us he didn’t want to worry us about them.

Overdraft £750
Income has only ever been disability living allowance (since 2007)
Charges are around £400 with interest at £100

I understand he has spent it but I feel the charges have just resulted 8n the bank allowing h8m to extended the overdraft to cover the charges on at least 2 occasions.

I do intend to go into the bank with him to discuss reducing the overdraft over a period of time to £0 but is it worth discussing the charges and possibility of irresponsible lending?

Thanks in advance
30th June 2021 completely debt free…. Downsized, reduced working hours and living the dream.

Comments

  • dunstonh
    dunstonh Posts: 116,041
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    I understand he has spent it but I feel the charges have just resulted 8n the bank allowing h8m to extended the overdraft to cover the charges on at least 2 occasions.

    So, the bank has tried on occasion to reduce his charges. That is good.
    I do intend to go into the bank with him to discuss reducing the overdraft over a period of time to £0 but is it worth discussing the charges and possibility of irresponsible lending?

    Its only £750. Its not very much in the scheme of things. So, its hard to accuse them as being irresponsible.

    Do the bank know of his medical situation? Is he employed?

    Certainly, mention charges as how its creating hardship (along with his medical condition). However, forget the irresponsible lending bit. Very few complaints succeed on that basis and if you want a goodwill gesture from the bank, its usually better not to wind up the bank clerk you are dealing with.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • davilown
    davilown Posts: 2,303
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    Thanks for your advice - I’m not after getting it all paid off but I think it would help, together with an effective plan to reduce the OD
    30th June 2021 completely debt free…. Downsized, reduced working hours and living the dream.
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