Bank Loan- Is It Right, Can They Do This?
I took out a bank loan to cover and consolidate some old debts and also pay off an overdraft which they were demanding to be paid off in one go if i didnt take out the loan to pay it off, however due to a change in situation I was no longer able to make repayments as agreed in the terms. I have since found out that the loan was classed as a home improvement loan. now at the time I didnt own a home as I lived with my mum, it looks to me they did this to get the loan approved. I do not own a home currently as I rent. Can they get away with this and have they mis sold me the loan?
It sounds like they have mis-sold you the loan. You should complain to the Bank and if you do not get a reasonable answer take your case to the Financial Ombudsman.
To be honest, what they classed the loan as, is pretty much irrelavant.
You went into the red on your overdraft and at the bank’s discression, they chose to give you a loan to bring you back into credit.
The classification of the loan is unimportant, the only thing that matters is whether the loan is secured or unsecured.
I could take out a home improvement loan and decide to buy a new car with the money if i wanted. All that matters is that i make the payments i confirmed i would pay.
you obviously agreed to it, if you cant afford to repay the full amount , talk to your bank and ask if they can reduce the payments, you cant get out of it, so best to talk to them rather than bury your head in the sand
You cannot get out of paying back what you owe. So, don’t even try.
Right, you are not to blame for this mess! You are a deadbeat!
Either way you will have to pay back the loan whether in part or full – you have an obligation and you have to fulfill it.
Filing for bankrupcty is not as easy as it sounds because many banks now are refusing debtors this options (the bankruptcy has to be agreed by all parties concerned)
How did you find out what the loan was classified under? If it’s in the paperwork they sent you then you won’t have case as they told you at the time.
Contact the Financial Obudsman Service and they will be able to advice you.
OK you borrowed the money you should pay it back, if you had borrowed it off me that’s what I would expect regardless of the reasons you borrowed it. Go to the bank and negotiate terms for repayment.
I think they seriously have acted disgustingly by placing you under duress in order to take another loan. I would seriously be complaining to them and the financial services ombudsman about the way they forced you into this. Regardless what it is for…..i would simply be standing up to them bullies and screaming very loudly. I really do hope you report them, banks are in need of some serious comebacks.
It is irrelevant about the home improvements nbecause you have something even bigger to fry with them first!!
you havn’t told us what they are trying to get away with?
other than the fact that you defualted on a loan re-payment.
sounds more to me like you are trying to weasle out of your obligations
You must have read carefully the document you were signing when you received the loan and it was up to you to discredit the loan at that stage. You could make a formal complaint, but I am sure they will ask you the same question. You should have taken out a payment protection plan at least to cover you in the event of your losing your job that kind of thing. The only other alternative would be for you to claim bankruptcy, this will of course destroy your credit rating for quite a long time, but at least it will get the creditors off your back. You should really seek some advice from the Citizens advice department if you can’t afford legal representation at least they will advise you of your rights.
File for bankruptcy so that your debtors could no longer demand payments from you.