Possible Mid-Selling Of Loan

[buffymad]

My other half is hopeless with money! He applied for a loan online for over 5 years and repayments were affordable. He was then invited to call into the company’s local office to continue his application. They apparently looked at his bank statements, said he could afford it but they only do over 3 years. Other half went ahead and signed.

I only found out after he’d got the money, spent some of it and made first repayment how much it actually was - nearly £200 a month. If I’d been there with him at the time I’d have said no, you can’t actually afford that.

He’s now struggling big time so got in touch with the company. They’ve invited him in (I’ll be going along too this time) but did say over the phone they were surprised as they’d gone through everything and he had £300 spare. Yes, but once they take their £200 off that leaves him with £100 a month for petrol, taking his kids out, toiletries and any other emergencies. Surely they should have known at the time that wouldn’t be enough for him to be left with?

I know it’s no excuse about him being hopeless with money, but he’s easily led and if they said oh you can afford it, he obviously though oh okay then!

Do I have an argument that knowing how much he’d be left with to exist on a month, they shouldn’t have offered him the loan in the first place?

[barry1010]

Did they tell him what his monthly repayments would be?

[Boto]

I can sympathis but surely people have to take responsibility for their actions. He should have known how much he needs to live on.

[emmie]

i had the same problem, made redundant, no money to speak off, heavily in debt and then the bank offered me a substantial loan to help, it didn't, i was made a admin order, as near to bankruptcy as you can get, the luckily a free financial advisor helped me get back on the right path.

[emmie]

you can try the bank responsible but don't hold your breath.

[bobbinwales]

so its not the loan itsself thats the issue it the repayment schedule? Maybe he could ask for it to revert to 5 years but off cpurse in the long run that would cost him alot more

[barry1010]

I must add that you don't have an argument - it is your partner's loan and unless you have Power of Attorney the company won't listen to you.

[buffymad]

I’m assuming he would have been told the repayments and yes, it’s his own fault. But I’m asking should a loan company suggest he can afford it if he’s only left with £100 a month to live on?

I’m not going to speak on his behalf, just there to listen and speak if I’m able to.

I just know if I was told you can have a loan and that’s what you’ll have left, I’d think no thanks, that’s not enough to exist on a month. But then I’m good with money and think carefully! Unfortunately not the same in his case!

[bhg481]

It would certainly pay the loan company to extend the period to 5 years; they'd lower the risk of him defaulting on the loan and they'd make more money out of it, so it's worth trying for that.

[JJ109]

Did your OH tell the truth at the interview or did he conveniently forget some commitments?

[barry1010]

Do you live with him? Did he tell them your income, too?

[Peter Pedant]

// Surely they should have known at the time that wouldn’t be enough for him to be left with?//
why are you asking US ?

yes you do have a case to renegotiate

use vulnerable a lot - and unreasonable pressure

[THECORBYLOON]

If he had £300 left, would that not have been after day-to-day expenses such as the ones you mentioned?

He might also have underestimated the amounts in the answers he gave so you could ask that at the appointment.

Having said that, if the answers given were not accurate but reasonable, the lenders are not to know any different.

[bednobs]

you say hes only spent some of the money - could you afford between tou to pay the balance back now?

[buffymad]

They said he had £300 left over before the loan, meaning once they started taking their repayments he’d be left with £100. He gave them the sheet I typed out (a very honest sheet!) and they looked at his bank statements (they said) which obviously corresponded with that.

I did think they shouldn’t advertise 5 years then turn around and say oh we don’t do that, 3 years is the most.

[bednobs]

could you afford to make them an offer for the whole loan?

[barry1010]

When did he take the an out? The penalties can be harsh for early settlement if he has passed the cooling off period

[jno]

considering they actually invited him for a personal interview - so it's not some sort of online scam - and he told them his circumstances, it's going to be tough arguing that the loan was mis-sold. "I'm easily led" isn't really an excuse.

Good luck trying to work out some sort of deal but I wouldn't try arguing that the bank have misbehaved - I'm not sure they have.

[laminetrack1]

First of all, you need to understand. A bridging loan is a short-term loan for operating expenses or to solve an urgent financial problem. So to take it, you must prove to the bank that it is necessary. This can be done if you have some production or organization. If the loan is for the purchase of property, it is better to take out an Ipoteka.

[laminetrack1]

This is a full loan that pays off the entire value of the house. There are various nuances to such a procedure, so you may need the help of Mortgage Advisor Leicester. Personally, it has been more beneficial to take out a loan at once and cover all my needs. Then taking out a smaller one all the time.