Mis Sold £5000 Overdraft Facility Against £18K Salary - Claim?

[Iggle Piggle]

Hi money brains, I have a situation where an overdraft facility of £5000 was allowed to a person on a £18,000 salary.
This is 27% roughly of the income. Is there a claim here against the bank for mis-selling the overdraft (unless the person specifically requested it)?

I've done numerous PPI claims but this one is new to me!
Thanks

[ubasses]

I doubt whether any Bank would offer an overdraft facility of that amount at all. Most likely that it was requested for a specific purpose and they were given details of how it was to be repaid. If it was for longer than a few months they would have pushed to do a loan with structured repayments.

[Iggle Piggle]

Thanks Ubasses, I guess I'll have to do a data subject request for the info and see if there was a specific request, then take it from there.

[Buenchico]

You've not mentioned the date when the overdraft was granted. It's only very recently that banks have been required to consider customers outgoings, as well as their incomes, when deciding whether to permit any form of loan.

Someone living in their parents' home, for free or paying only a nominal amount, and earning £18k pa could easily service a debt of £5k (even at the interest rates charged by credit card companies, rather than the preferential rates given to overdrafts) whereas someone earning the same amount but renting a flat on their own in London (if that's actually possible!) wouldn't be able to do so.

So an income of 'only' £18k (which, incidentally, is more than double mine!) wouldn't be an automatic barrier to a £5k overdraft and thus, until lenders were required to examine customers' outgoings, would not constitute 'mis-selling'.

[ToraToraTora]

was the overdraft covered by PPI? usually it applies to specifically planned loans. You can only claim miss selling if there was PPI "miss sold" sounds to me like you willingly accepted the overdraft so I doubt you'll have a claim.

[bednobs]

i don't understand how you can be "sold" an overdraft facility. - you don't usually have to pay unless you use it do you?