Banks and vunerable people/addicts

[akania]

I dont know wether i am in the right section and ive tried to google this without much success but if a bank or any other financal institution knowingly lends money to an 'addict' knowing what they use it for securing against their property, is that in anyway irresponsible lending under any law in the country or under european law?

I know i maybe pissing in the wind here but just wondered if any one knew or where i could do some possible research?

Thanks

[wales01man]

Re: Banks and vunerable people/addicts

Did the addict tell the bank they were an addict? as many loans are NOT made face to face with a person how can the bank know the person is this or that??

[akania]

Re: Banks and vunerable people/addicts

Yes , basically she went for a remortgage as she wasin trouble with gambling debts. She admitted to the bank manager ( around 2006) that this is what she spent the money on. She asked for limits to be it on her cards which they said they couldn't do. She got the remortgage to cover outstanding debts and the bank manager then told her a story about a mate of his that has a similar problem and she needed to stop etc.

The remortgage was granted and she went on another bender. She went back again and they said that they could see she gave it a good old go, or words to that effect, and this would be the last time that she could remortgage. She was then remortgaged up to the hilt and then lost her home to the bank and is now sleeping on her mums couch where she's been since 2009.

she knows all too well that this is her fault and as we all know with gamblers the worst thing for them is to give them money. She accepts full responsibility and no one could be harder on herself than she is but I just wondered if there are any case studies or court cases that I could look at , even human rights ? The bank made a lot of money out of her, she lost her home to that bank.

I guess I just feel sorry for her. I just wanted to know if I could help her at all.

[akania]

Re: Banks and vunerable people/addicts

Any ideas anyone , or could you point me in the right direction of someone that might be able to help?

[des8]

Re: Banks and vunerable people/addicts

The FOS MIGHT (repeat MIGHT) regard this as irresponsible lending by the bank because the bank knew she was vulnerable and might therefore put particular trust in the lender (their terminology). This may place a greater than normal duty on the lender to act responsibly.
See here for examples: http://www.financial-ombudsman.org.u...59-banking.htm

[labman]

Re: Banks and vunerable people/addicts

Hi akania,

Seeing anyone you care about suffer with an addiction is a horrible experience. My stepson suffers with drink, drug and gambling addictions, and it has been very hard to get him to a stage where currently he is pretty stable.

I've found this hunting around the internet and thought it looked good. It doesn't directly answer your question about irresponsible lending, though hints the answer is probably no, the banks aren't accountable (my supposition, not fact!) I hope you'll find it a beneficial read and wish you luck. :beagle:

http://www.ncpgambling.org/files/lov...pg_booklet.pdf

[akania]

Re: Banks and vunerable people/addicts

Thanks very much. Its just one of thoes addictions that not only ruins your life but the consequences just go on and on. Its so hard to recover from.

I know its easy to try and put responsibilty on someone else, and thats not whats shes trying to do, in fact she hasnt asked me to do anything and i get up just upset that the banks and the gamlbing sites have made money out of her and the fact that this addiction destroyed her. But hey i guess thats capitalisim for you. Its just all so evil. Shes such a lovely woman im devestated for her.

Thanks you for trying to help x

[Inca]

Re: Banks and vunerable people/addicts

I know a family that went to every corner shop/off licence/pub to ask them not to serve their sister alcohol...she was an alcoholic and it was killing her.
The majority said 'Why should we? She's an adult and her money is our profit,,sorry'
She died 13 years ago.

[akania]

Re: Banks and vunerable people/addicts

Ok just spoke to the financial ombusman service who said that they are going to open up a complaint with HSBC for lending money to a vunerable person as they knew she was gambling at the time. I know that not many people have much success with the Financial ombudsman but nother ventured nothing gained i guess.

Thnaks for your help on this , ill keep you posted.

[labman]

Re: Banks and vunerable people/addicts

Good luck!

Inca - we did the same for our stepson. The shops were understanding and stopped serving hiim, but, being an addict, he still got it somewhere, somehow - that's the very sad thing wih any addiction, it creates an unsatiable craving within the person and they'll do anything to try to satisfy it.

[akania]

Re: Banks and vunerable people/addicts

Awh Inca you always appear on my threads, thankyou x


Ok so i am acting as her representitive on this, (got too much time on my hands me, plus i love a good fight

They said to me if the bank lent her money whilst gambling , drinking and on antidepressants ( which can be verified by the doctor) then she has a good case. I mentioned that the meetings were done face to face with the manager at the time, and they said that all they need to do is look on the bank statements at the time of the remortgage and see the transactions and the extent of the gambling. She started off with a mortgage of £38,000 in 2006 and ended up with a mortgage of £104,000 in 2007 where after they repossessed her home.

Upshot is ,, worse case scenario, nothing happens, best scenario they put her back in the position she was in before they gave her the money.

Id love to think this will go well. Fingers crossed. Im now looking for some legislation somewhere as i found it on the barclays website that says you cant use the money for gambling.

What you can use a Barclayloan for:
A Barclayloan can be used for almost any purpose. However, you can’t borrow for the following:

• Business reasons
• Investment purposes, including buying stocks and shares
• Timeshares
• Other property finance, including purchases, part payment or deposits on purchases and property development – although home improvements are fine
• The repayment of CCJs or gambling debts
• As a deposit for something being purchased with money from another lender

How we work out the interest rate you’ll pay
The rate you’re offered is based on your personal circumstances, the loan amount and the repayment term. It may also vary based on whether you apply online, in a branch or over the phone. Interest is calculated daily on the outstanding loan balance.
Repaying your loan early
You can repay your loan early in full or in part at any time. In addition to any other interest that’s due, we will charge you a fee equal to 30 days’ interest, calculated on the amount being repaid for a partial repayment or on the amount you owe us where you repay in full. For more information, call 0800 716 598 ⁴ or visit a branch.

[akania]

Re: Banks and vunerable people/addicts

I know it says gambling debts but at least gambling was in there somewhere lol

[Inca]

Re: Banks and vunerable people/addicts

Akania,,I see your threads cos I know about divorce/kids/custody/addictions....what a fab CV.....and fair play to you for taking this on and like you say,,it's not gonna cost anything..(I'll remind you of that when you rock up completely bald from tearing your hair out and typing with yer toes cos you've gnawed your fingernails down to your elbows msl:

[akania]

Re: Banks and vunerable people/addicts

Lol my brother always said to me that if i put the same effort into my busniess as i do into fighting organisations id be a millionaire but i love the fight

[labman]

Re: Banks and vunerable people/addicts

akania - when a loan / remortgage is taken out, there is always a reason recorded as to what the money is to be used for. This is signed by both parties.

What reason is on the paperwork in this case? :beagle: