Hi I am helping a friend in relation to a series of Loans that were agreed with First Direct around 2018/9. I'd be grateful for a position in regards to this; I'll work to take appropriate action based on the feedback from people on here who are more well versed in this area! The query relates to irresponsible lending against 3 unaffordable loans and what the best course of action should be. Aware further info may be needed to flesh this out which I can supply over time. The case for the irresponsible lending could be:
I have recommended a Subject Access Request (SAR) in the interim.
- Person in question was approved for £22,000 worth of loans in a 2 month period with a further £2000 loan approved 6 months later. There was a debt on a non First Direct credit card at this point (I'll try to identify the position of this debt - e.g number of missed payments).
- Loan 1: £15k, agreed 12/7/18
- Loan 2: £7k, agreed 19/8/18
- Loan 3 : £2k, agreed 3/4/19
- The total repayments were over £400 when the salary of the applicant was approx £2000 a month with high living costs - there was evidence that the overdraft on a First Direct personal account was being used most months.
- The person in question has had ongoing health concerns (including mental health means - receives Personal Independence Payment (PIP) due to disabilities) and presently is able to work part time.
- After receiving loan 2 and 3 my friend paid back amounts as she realised the loans were unaffordable but then was also in financial difficulty due to health so needed to request amounts back from the loan overpayments which was done in the case loan 2.
- My friend says she told First Direct about health issues and unemployed which is when they transferred the the £3000 overpayment on loan 2 back to her.
I have recommended a Subject Access Request (SAR) in the interim.
Comment