Irrresponsible lending question?

[Surfer]

To cut a long story short. In Nov 2004 we took a consolidated loan for £53,000 with Firstplus over a period of 15 years as at the time I was fit, working and aged 55 years. Wife was 52 years old. Repayments were about £600 per month.
This meant the loan would finish in 2019. We have paid off the majority of the loan as we had to sell up, but there is still £4000 outstanding which is being paid off at £70 per month and will run until 2019. However both the wife and myself would have been "officially" retiring on state pension next year, however at moment due to disabilities we are on Pension Credit and the £70 payment is a PITA.
If we were fit and well and retired in 2014 as originally planned, surely FP should have been aware of this when they offered us the loan and would have known that there is no way we would have been able to afford paying in nearly £600 per month out of a state pension payments?
Could this be regarded as irresponsible lending and is there anything we could do as we have more than paid back the debt as it is only interest we are paying?

[labman]

Re: Irrresponsible lending question?

On what grounds would you claim irrepsonsible lending? Plenty of people take out loans which go on into their retirement - my parents didn't complete their mortgage until they were 72! First Plus did not have a crystal ball, so were unable to predict what would happen, any more than you could.

If you're going to have problems paying them, it's best to tell them now and see what can be sorted out. I suspect they will be keen to help.

[Surfer]

Re: Irrresponsible lending question?

On what grounds would you claim irrepsonsible lending? Plenty of people take out loans which go on into their retirement - my parents didn't complete their mortgage until they were 72! First Plus did not have a crystal ball, so were unable to predict what would happen, any more than you could.

If you're going to have problems paying them, it's best to tell them now and see what can be sorted out. I suspect they will be keen to help.

Surely they should have realised that there is no ways any one on a state pension can pay back nearly £600 per month so that is irresponsible lending? FP didn't need a crystal ball to figure that one out.

[wales01man]

Re: Irrresponsible lending question?

Did you not add the term of the loan to your age at the time and wonder how in later years you would pay?
I think there may be a term such as Irresponsible Borrowing did you not have a crystal ball.
Sorry if you don't like my reply I say it as I see it

[labman]

Re: Irrresponsible lending question?

Did you not add the term of the loan to your age at the time and wonder how in later years you would pay?
I think there may be a term such as Irresponsible Borrowing did you not have a crystal ball.
Sorry if you don't like my reply I say it as I see it

That's partly what I was alluding to in my reply. You took the loan out, so you signed knowing to what you were committing surely?

That aside, your problem is that you can't afford to meet the repayments, and it is this which needs sorting out. I'd still contact them initially to see what options they can offer - they've proved reasonable in the past. Accusing them of irresponsible lending is not going to endear yourself to them. :beagle:

[Surfer]

Re: Irrresponsible lending question?

We can afford the £70 but it is a PITA. I never accused them of irresponsible lending as I was querying it in my post. I guess this was the wrong forum to ask this question.

[des8]

Re: Irrresponsible lending question?

Oh dear, sounds as if you didn't get the response you were hoping for.
However, no the bank was probably not acting irresponsibly, and is there anything you can do? Yes, approach bank, explain position and ask for options as suggested by Labman.
Right forum, wrong expectations

[Surfer]

Re: Irrresponsible lending question?

Didn't Lloyds get nailed recently for irresponsible lending which I was surprised no one picked up?

[labman]

Re: Irrresponsible lending question?

Didn't Lloyds get nailed recently for irresponsible lending which I was surprised no one picked up?

I don't know - do you have a link to anything about this, as a quick Google has not brought up anything for me (that doesn't mean it's not there! lol) If they have been penalised for it, it might have been helpful to mention it in your original post.