A mis-sold Lloyds Bank loan?

[Alkaz]

Hello there guys!

 

My father had a credit card for many years and since divorcing was unable to make significant repayments to the credit card

thus was simply paying the bare minimum required of him every month.

 

One day he was in the bank and they said that he could be elligible for a bank loan to pay the entire credit balance

and then pay the loan off with a set amount of interest.

 

He was taken to a side room and his circumstances were discussed and he was given a loan of £1000

which would cover his credit card balance and give him the first few months payments without having to worry about them.

 

he proceeded with the loan and agreed to the terms thinking that the loan was being taken out over three years.

 

around two months later I am in the bank with my father and we go to customer services for something totally unrelated and

the cashier flagged up to my dad that his £1000 loan repayments were infact spread over 7 YEARS!!

She also told him that he would have to pay back a total of £2300 for his £1000 loan over the 7 years.

 

We were told that the only way that the agreement could be changed was to either put in an official complaint

(which the bank manager and cashier who was with us seemed quite adamant that we shouldn't)

or to borrow MORE money and pay back that loan then pay back the £2300 over a shorter amount of time.

 

My dad finds money a tight squeeze at the moment, as we all do

however myself and my siblings told him that we would contribute towards the repayments

so he didn't have this credit debt hanging over him

so he knew that he would be able to make the repayments of around £60 a month if he had taken the loan out over 3 years, which he wanted.

 

However I think the person who did the loan for him looked at his current circumstance only

and pretty much ignored what he said and gave him the loan quite misleadingly

and over 7 years at the minimum payment per month for which he was previously paying on his credit card repayments.

 

I hope this kind of makes sense.

 

But I feel that he would seriously mis-sold this loan,

or the details were not properly explained to him

and I think it is quite ridiculous that the only way to change the terms of the loan

is to put in an official complaint against the person who took out the loan for him

or to take out the entire amount in a separate loan to pay it back early (which makes NO sense).

 

I want some clarity really on where my father stands

and what we can do to try and get this ridiculous situation sorted out.

 

Many thanks,

 

Joe

[dx100uk]

I think i'd start by sending Lloyds an sar

 

get al the details of what the bank actually recorded and arranged for him behind the scheme's

 

then you'll probably have the evidence to support an irresponsible lending complaint.

 

I would have a guess that there are also issues regarding commission for selling PPI etc etc

that whomever sold the loan was more interested in .

[Klandestine]

Surely he signed and saw the length of the loan though?

 

I think it is quite ridiculous that the only way to change the terms of the loan

is to put in an official complaint against the person who took out the loan for him

 

Why is that ridiculous? If you think it was mis-sold then you need to complain? Why would you think you can just change the terms of the loan that were (allegedly) agreed to at the time?

 

or to take out the entire amount in a separate loan to pay it back early (which makes NO sense).

 

It does make sense. And if this was a mistake on your fathers part this would be the thing to do.

But if you are saying that this is the banks fault then you need to make a complaint.