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  • FIRST POST
    • kainzow
    • By kainzow 13th Mar 18, 1:57 AM
    • 9Posts
    • 0Thanks
    kainzow
    Was my overdraft irresponsible lending?
    • #1
    • 13th Mar 18, 1:57 AM
    Was my overdraft irresponsible lending? 13th Mar 18 at 1:57 AM
    Hi. I recently had some success reclaiming my packaged bank charges.

    i was given a refund after claiming it was miss-sold and that i felt pressured into taking the account.

    I was only refunded the account package charges ( 15 a month) now i've continued looking into my financial past and have discovered something but i'm not sure if its worth approaching the bank about.

    not only was i pressured into taking the account and overdraft in the first place, i was also unemployed and not on benefits at the time so did not have any income, but i was still given 500 overdraft.
    now my thinking is here because the overdraft was given when i had NO income, it was probably irresponsible for the bank to have lent to me? even more so pressured into accepting ?

    Can i claim under the same sort of principals you would approached payday loan companies when asking was the lending responsible?
Page 1
    • Tom99
    • By Tom99 13th Mar 18, 2:04 AM
    • 2,265 Posts
    • 1,533 Thanks
    Tom99
    • #2
    • 13th Mar 18, 2:04 AM
    • #2
    • 13th Mar 18, 2:04 AM
    Did you spend any of the 500 overdraft?
    • kainzow
    • By kainzow 13th Mar 18, 2:19 AM
    • 9 Posts
    • 0 Thanks
    kainzow
    • #3
    • 13th Mar 18, 2:19 AM
    • #3
    • 13th Mar 18, 2:19 AM
    after month one i think i maxed it
    • zx81
    • By zx81 13th Mar 18, 5:35 AM
    • 17,295 Posts
    • 18,408 Thanks
    zx81
    • #4
    • 13th Mar 18, 5:35 AM
    • #4
    • 13th Mar 18, 5:35 AM
    I can't see ant mis selling.

    It wasn't forced upon you - it was just a facility available for your to use if you wanted to.

    And you wanted to.
    • kainzow
    • By kainzow 13th Mar 18, 5:48 AM
    • 9 Posts
    • 0 Thanks
    kainzow
    • #5
    • 13th Mar 18, 5:48 AM
    • #5
    • 13th Mar 18, 5:48 AM
    so i am correct in thinking that irresponsible lending is covered under this mis-sold umbrella? as i say i just feel that lending me 500 of cash when i have no income is basically setting someone up for years of overdraft charges ( 4500 of charges in 7 years averaging around about 50 a month in my case)
    • paddyandstumpy
    • By paddyandstumpy 13th Mar 18, 6:39 AM
    • 1,060 Posts
    • 527 Thanks
    paddyandstumpy
    • #6
    • 13th Mar 18, 6:39 AM
    • #6
    • 13th Mar 18, 6:39 AM
    No one forced you to spend the money.

    In fact, when I recently switched banks I specifically asked for no overdraft, so this would have been an option for you too.
    • kainzow
    • By kainzow 13th Mar 18, 7:52 AM
    • 9 Posts
    • 0 Thanks
    kainzow
    • #7
    • 13th Mar 18, 7:52 AM
    • #7
    • 13th Mar 18, 7:52 AM
    now this may be the case but it was never an option i was offered
    • elsien
    • By elsien 13th Mar 18, 8:06 AM
    • 16,568 Posts
    • 41,822 Thanks
    elsien
    • #8
    • 13th Mar 18, 8:06 AM
    • #8
    • 13th Mar 18, 8:06 AM
    Words fail me.
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
    • dunstonh
    • By dunstonh 13th Mar 18, 8:55 AM
    • 93,059 Posts
    • 60,448 Thanks
    dunstonh
    • #9
    • 13th Mar 18, 8:55 AM
    • #9
    • 13th Mar 18, 8:55 AM
    so i am correct in thinking that irresponsible lending is covered under this mis-sold umbrella?
    Irresponsible lending complaints that succeed are not common. Mainly tends to work where the person has a mental illness which the bank should have been aware of or the amounts are significantly out of proportion with the circumstances.

    so i am correct in thinking that irresponsible lending is covered under this mis-sold umbrella?
    A small 500 overdraft facility is peanuts on an account that is, by default a credit facility, is highly unlikely to be considered irresponsible lending.

    Do you have a mental illness that the bank should have been aware of? The amount is not really in the ballpark otherwise.

    edit added: Reading some FOS decisions (and its hard to find many on small overdraft facilities on personal accounts. its mostly loans, credit cards or mortgages with a few larger overdrafts - i.e. 5000 or so), it does appear that the status at point of credit is considered. Indeed, a common FOS wording is "At that time, H didn!!!8217;t appear to be in financial difficulty" or words similar. i.e. at the point the facility was offered, were you in financial hardship.

    Just spending the money through lack of control is not grounds for complaint. It really needs to be irresponsible.
    Last edited by dunstonh; 13-03-2018 at 9:31 AM.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • AstroTurtle
    • By AstroTurtle 13th Mar 18, 10:31 AM
    • 158 Posts
    • 537 Thanks
    AstroTurtle
    Sounds more like Irresponsible Spending.


    Com-pen-shay-shun
    • Moneyineptitude
    • By Moneyineptitude 13th Mar 18, 11:56 AM
    • 20,485 Posts
    • 11,354 Thanks
    Moneyineptitude
    i just feel that lending me 500 of cash when i have no income is basically setting someone up for years of overdraft charges
    Originally posted by kainzow
    As already explained to you on your previous thread, those historical charges won't be refunded to you. The Banks won their court case on charges in 2009.

    The only success stories reported where customers have alleged "irresponsible" lending are with PayDay loan companies or where lenders have loaned a large amount (much more than 500) to someone who clearly could not afford to pay it back.

    The Bank gave you an overdraft facility. It was your own choice whether to use it. Your causation argument doesn't wash either, you should have informed the bank you were in current financial difficulty at the time if you were struggling.

    In addition, the question has to be asked of why an unemployed person would deliberately run up a 500 overdraft in only the first month of getting the facility? As others have said, that would be irresponsible spending-not irresponsible lending.

    Do you even have proof that you told the Bank you were unemployed prior to this overdraft being granted? If not, this "complaint" is even more of a dead duck I'm afraid.

    Take solace in your other recent refunds:
    FROM ANOTHER THREAD
    the bank has actually sent me an unexplained large cheque last year (about 1400). it only just stated that they had reviewed my account and found that I had been treated unfairly.
    Originally posted by kainzow
    FROM ANOTHER THREAD
    So, 2 days after complaining about my packaged bank they have refunded me 1600 pounds!
    Originally posted by kainzow
    Last edited by Moneyineptitude; 13-03-2018 at 12:00 PM.
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