Halifax Loan and Credit Card Debt - They Wont Accept Responsibility

[Spellkaster]

In September 2006, I applied for a credit card online with Halifax.

At the time it was done Halifax did not ask me for proof of income.

They set a credit limit of £1000 which I though at the time was acceptable.

Each time I used and paid the card, they kept on raising the credit limit, again without asking me for my financial status each time.

In time by 2011, the credit limit was a whopping £9000, more then the benefit income I was receiving.

At no time did Halifax again ask me for proof of income or any financial information.

By December 2011, I was in some financial issues, and so Halifax approved me for a personal loan for £7K, done online through the current account facility.

Again, Halifax did not ask me for proof of income, and nothing with regards to my financial situation.

By June 2012, I went into an IVA.

I would like to state I did not default on any payments as the IVA was quickly approved to prevent me defaulting.

Last week, I wrote a letter of complaint to Halifax regarding how they lent me the money, and they are refusing liability claiming they looked at how I managed my account and the available credit scoring.

No mention of asking for proof of income, etc etc, and denied all responsibility.

I have some concerns that Halifax have lent me more then then I am capable of paying back and I believe that they have breached The Lending Code.

It clearly states in The Lending Code that lenders much think carefully about lending money to people and to make sure that customer can pay back what they owe.

My situation is that Halifax lent me nearly £10K worth of money which I cannot pay back therefore breaching the Lending Code.

I have reported this to the Financial Ombudsman Service, but I am not hopeful for the outcome I desire, for the outstanding balance to be written off and an apology from Halifax.

Any advice please on where I go from here!?

Its been very stressful, I have tried to pay the money back and can't.

Thanks for the replies if any!!

[nemesis45]

Re: Halifax Loan and Credit Card Debt - They Wont Accept Responsibility

Hi, irresponsible lending is not an easy challenge to a debt, without in any way being judgemental there is also irresponsible borrowing.

Did you make a Formal Complaint requiring them to fully investigate and respond?

I don't think the lending code was around 8 years ago?

It is I think a case for FOS and it's best to wait for its decision.

nem

[Spellkaster]

Re: Halifax Loan and Credit Card Debt - They Wont Accept Responsibility

Yes I did make a formal complaint last week and the bank are refusing to admit responsibility.

The Lending Code was around at the time the loan was given in 2011, I have been told by a solicitor I might have grounds for claim with regards to the loan.

[nemesis45]

Re: Halifax Loan and Credit Card Debt - They Wont Accept Responsibility

Indeed so it may be successful on the 2011 loan, did you refer the whole scenario to FOS?

nem

[Spellkaster]

Re: Halifax Loan and Credit Card Debt - They Wont Accept Responsibility

Indeed so it may be successful on the 2011 loan, did you refer the whole scenario to FOS?

nem

A complaint has been made to the FOS and I have added on to the complaint regarding The Lending Code. Would I be successful in getting all the payments made on the loan returned if the FOS agree in my favour! which is what I have asked for along with the debt to be written off?

[nemesis45]

Re: Halifax Loan and Credit Card Debt - They Wont Accept Responsibility

The decisions of FOS are so variable I would not like to make a guess.

nem

[Spellkaster]

Re: Halifax Loan and Credit Card Debt - They Wont Accept Responsibility

I quote The Lending Code:- Before lending you any money, lenders willassess whether they feel you can afford to repayit by considering:• the type and amount of credit you want;• your income and financial commitments;• information held by credit reference agencies(CRAs); and• how you have handled your finances in the past(if this is known).They may also ask you for other information.Lenders will also tell you when a credit search willbe made and when they might pass information aboutyou to CRAs.

I guess I might have a claim as they did not ask me for proof of income, and nor did they ask me about my financial status at the time.

[Spellkaster]

Re: Halifax Loan and Credit Card Debt - They Wont Accept Responsibility

I have as of today sent off the paperwork to the Financial Ombudsman Service.

I also put in there a 3 page breakdown of what parts of The Lending Code I am disputing and why.

I am not hopefuly as I have been let down in the past by an Ombudsman Service, but no harm in trying.

I have also still had no word back from Halifax with regard to the section 75 CCA request they have ignore it so far.

They have until end of the week.

This will be a separate claim against them to the FinancialOmbudsman Service who have said that they can check if the agreements are legal.

Wish me luck xx

[skilganon]

Re: Halifax Loan and Credit Card Debt - They Wont Accept Responsibility

dont know if this will help you or not?

the consumer credit ( EU directives) regulations 2010

Assessment of creditworthiness
5. After section 55A (pre-contractual explanations etc) as inserted by regulation 3, insert—
“Assessment of creditworthiness
55B.—(1) Before making a regulated consumer credit agreement, other than an excluded agreement, the creditor must undertake an assessment of the creditworthiness of the debtor.
(2) Before significantly increasing—
(a)the amount of credit to be provided under a regulated consumer credit agreement, other than an excluded agreement, or
(b)a credit limit for running-account credit under a regulated consumer credit agreement, other than an excluded agreement,
the creditor must undertake an assessment of the debtor’s creditworthiness.
(3) A creditworthiness assessment must be based on sufficient information obtained from—
(a)the debtor, where appropriate, and
(b)a credit reference agency, where necessary.
(4) For the purposes of this section an agreement is an excluded agreement if it is—
(a)an agreement secured on land, or
(b)an agreement under which a person takes an article in pawn.”.

[Spellkaster]

Re: Halifax Loan and Credit Card Debt - They Wont Accept Responsibility

dont know if this will help you or not?

the consumer credit ( EU directives) regulations 2010

Assessment of creditworthiness
5. After section 55A (pre-contractual explanations etc) as inserted by regulation 3, insert—
“Assessment of creditworthiness
55B.—(1) Before making a regulated consumer credit agreement, other than an excluded agreement, the creditor must undertake an assessment of the creditworthiness of the debtor.
(2) Before significantly increasing—
(a)the amount of credit to be provided under a regulated consumer credit agreement, other than an excluded agreement, or
(b)a credit limit for running-account credit under a regulated consumer credit agreement, other than an excluded agreement,
the creditor must undertake an assessment of the debtor’s creditworthiness.
(3) A creditworthiness assessment must be based on sufficient information obtained from—
(a)the debtor, where appropriate, and
(b)a credit reference agency, where necessary.
(4) For the purposes of this section an agreement is an excluded agreement if it is—
(a)an agreement secured on land, or
(b)an agreement under which a person takes an article in pawn.”.

Thanks for that, will ask the FOS when I hear from them!!

[Spellkaster]

Re: Halifax Loan and Credit Card Debt - They Wont Accept Responsibility

I am going to notify the FOS that Halifax have failed to respond to the CCA request.

This will add weight that the debts are now no longer valid.

The Insolvency Exchange, who have the debts, not replied with the CCA request.

I will give a copy of the CCA request to the FOS on Monday to show it was asked for and not complied with.

[sloane82]

Re: Halifax Loan and Credit Card Debt - They Wont Accept Responsibility

Ok First of all how much is the total amount of debt?. Did you have any PPI on the Credit Card?. Ask as a goodwill gesture will they write off any of the debt off. The FOS will look into this so dont panic as you have a bank account with the Halifax get an SAR and look through anything that you have been overcharged on Overdraft fees packaged accounts loans and Credit Cards also your mobile phone Gas and Electricity and claim it all back also overseas charges etc the Halifax are'nt the greatest of banks with a £1 a day worth of charges i was with them myself and I went to the Co-operative bank open up a basic bank account with someone else and look into all statements etc and claim everything that your owed back.

[sloane82]

Re: Halifax Loan and Credit Card Debt - They Wont Accept Responsibility

Also can you put letters etc up so I can have a look at ok. Cheers.

[Debt Camel]

Re: Halifax Loan and Credit Card Debt - They Wont Accept Responsibility

Why are you bothering to do this? I understand you feel that DFD were completely wrong to "sell" you this IVA when you would have qualified for a DRO. But your simple way forward now is a DRO. Just cut through all this stress and take the the easy way forward!