Debts written off

Houser0546 · 11 November 2019 at 12:31AM

Hi All,
Back in 2015/16 I applied for a credit card with a limit of £9100. I already had unsecure debts of over £17000 and a mortgage.

I got into a vicious circle of getting loans to pay off other loans.
I took out a £15000 loan with HSBC to pay off debts but it didn't work. I then took out a £25000 loan with a bank followed by another £5500 loan with another bank 3 months later. All in all I had over £50000 worth of debt. Eventually I couldn't cope and defaulted. At the time of all this i was earning £29000.

Roll on to 2019 and doing some online research I've come across irresponsible lending threads. I emailed all CEOs of the banks who forwarded me on to their executive offices.

All 3 banks have responded. One bank has agreed to irresponsible lending and the loan has been written off for £5500.

Do I have any chance with the larger loans? When taking out the £25000 loan I was already in over £20000 worth of debt. Should I not have been declined for the £25000 loan?

Looking for people who have been in similar situations to see what their views are.

If one bank can write off the loan as they concluded they lent irresponsibly, should the other banks follow suit or will I have to take them to the FOS.

Yes I need to hold my hands up in all of this as I hit the submit button but shouldn't the bank who lent me £25000 have completed more stringent credit checks?

I'm happy to pay back the £25000 loan but it has been sold on to a debt management company along with the interest added, all in all £39000 needs to be paid back for that loan alone.

Any advice or help would be appreciated.

Thanks

Davy_Jones_II · 11 November 2019 at 12:37AM

They’ll likely write it off if you pay back what you took, and spent, plus interest.

Willing2Learn · 21 November 2019 at 7:39PM

If you want to check whether your creditors have had due regard to the legislation, guidance and regulatory framework, then you would need to make an official written complaint to the relevant creditor. Only if, after eight weeks, they do not resolve your complaints to your satisfaction, would you be able to escalate the matter to the FOS.

Houser0546 · 21 November 2019 at 9:23PM

Hi there thanks for the constructive feedback unlike some on here. I've written to the 3 CEOs of the banks involved. One was particularly helpful and got his team to investigate. The found they had in fact lent irresponsibly and write off the loan. The other 2 are proving a little more difficult even though they lent me more money. I've written to the Financial Ombudsman already so will see what they come back with.

Debts written off

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