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I am struggling to meet monthly payments on a loan with my local bank, the BBVA. I have a solicitor's letter outlining impending court action.
I borrowed 5000 euros to start a business in 2008. The loan was made available with no questions asked. I may have signed something in the branch later, but I can't remember.
I am a British ex-pat, and a resident in Spain. I have never been in full-time employment here in Spain, I have no steady income, or assets. I live with my elderly parents, as my father is severely disabled, and I work from home. I do not claim any benefits. The loan sum - up to 10,000 euros was made available through on-line banking, with just a click of a button. In my defence, I would like to pose the following question:
"What steps did the bank take, to ensure that the customer was in a position to repay the loan?"
I think this a fair enough question, to which the answer is, "none".
Subsequent attempts to explain my business venture to the bank, which involves growing trees for a potential nursery business, have been ignored. I invested their money well enough, and have stock worth more than I owe, but obviously it's not the kind of stock you can seize to pay off debts. Neither can I sell up my stock and recoup anywhere near the full retail value.
I can't think of any bank that would lend money in this way. I had no borrowing history with the bank. I deposited a lump sum of 15,000 euros when I first opened the account in 2007, and drew on it regularly. The loan was offered to me when I had around 2000 euros left. During that time, I never once paid money into my account, so they obviously never vetted me as a customer.
I have already visited the bank with a letter offering to pay them 10 euros a month, but this has been rejected. On the day of receiving the first letter from the solicitors acting on behalf of the bank, I was instructed to pay whatever I could the same day and phone them back, which I did. I was not given any further instructions, until I received a similar letter recently, stating that court proceedings would start if the outstanding arrears were not settled.
I simply would not be in this position if the bank had done what every other bank usually does before agreeing to a customer loan. Does this not justify a case of irresponsible lending?
I borrowed 5000 euros to start a business in 2008. The loan was made available with no questions asked. I may have signed something in the branch later, but I can't remember.
I am a British ex-pat, and a resident in Spain. I have never been in full-time employment here in Spain, I have no steady income, or assets. I live with my elderly parents, as my father is severely disabled, and I work from home. I do not claim any benefits. The loan sum - up to 10,000 euros was made available through on-line banking, with just a click of a button. In my defence, I would like to pose the following question:
"What steps did the bank take, to ensure that the customer was in a position to repay the loan?"
I think this a fair enough question, to which the answer is, "none".
Subsequent attempts to explain my business venture to the bank, which involves growing trees for a potential nursery business, have been ignored. I invested their money well enough, and have stock worth more than I owe, but obviously it's not the kind of stock you can seize to pay off debts. Neither can I sell up my stock and recoup anywhere near the full retail value.
I can't think of any bank that would lend money in this way. I had no borrowing history with the bank. I deposited a lump sum of 15,000 euros when I first opened the account in 2007, and drew on it regularly. The loan was offered to me when I had around 2000 euros left. During that time, I never once paid money into my account, so they obviously never vetted me as a customer.
I have already visited the bank with a letter offering to pay them 10 euros a month, but this has been rejected. On the day of receiving the first letter from the solicitors acting on behalf of the bank, I was instructed to pay whatever I could the same day and phone them back, which I did. I was not given any further instructions, until I received a similar letter recently, stating that court proceedings would start if the outstanding arrears were not settled.
I simply would not be in this position if the bank had done what every other bank usually does before agreeing to a customer loan. Does this not justify a case of irresponsible lending?
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