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High Interest Short-Term Loan approved when it should never have been

  • 11-09-2013 12:53am
    #1
    O Riain
    Closed Accounts Posts: 1,107 ✭✭✭


    I need some advice here.

    In the event that somebody at the age of 55 was approved for a high interest short term loan to the tune of €120,000 when their only income was a standard state pension is there any grounds for the loan to be deemed unfair.

    What is being sought here is not for the loan to be written off or anything like that but for the loan to be changed to somethign more manageable. Sometime in the very near future a balloon payment of around €70,000 is going to be sought by the lender and if this is not paid(which is not looking likely) then legal proceedings will be initiated. A house was placed as the gurantee and will most likely be the first thing to go if the lender gets their way.

    To me this loan should not have been granted in the first place as the entire scenario is ridiculous. Once again the aim here is not to get out of the loan but simply to get it turned into something more manageable. This could be in the form of a mortgage or other type of loan but the lender is completely and utterly opposed to this.

    Is there a leg to stand on here? Any advice would be greatly appreciated.


Comments

  • #2
    No Pants
    Closed Accounts Posts: 3,347 ✭✭✭No Pants


    O Riain wrote: »
    is there any grounds for the loan to be deemed unfair.
    In what way was it unfair, did they not get the money?


  • #3
    O Riain
    Closed Accounts Posts: 1,107 ✭✭✭O Riain


    No Pants wrote: »
    In what way was it unfair, did they not get the money?

    Well I suppose unfair is the wrong term. My point is the loan should never have been given in the first place. It was granted to a person who was clearly never ever going to be able to pay it back.
    The person who took the loan was extremely stupid, no question about that, but I can't understand how it was approved given their financial circumstances.


  • #4
    BuffyBot
    Registered Users, Registered Users 2 Posts: 24,924 ✭✭✭✭BuffyBot


    Have they complained to the bank, officially?

    If not, they should do so. If that doesn't yield results, they should then look at complaining to the FSO.

    Folks on here can really only give general advice, not being party to the full info.


  • #5
    O Riain
    Closed Accounts Posts: 1,107 ✭✭✭O Riain


    BuffyBot wrote: »
    Have they complained to the bank, officially?

    If not, they should do so. If that doesn't yield results, they should then look at complaining to the FSO.

    Folks on here can really only give general advice, not being party to the full info.

    I fully understand that and thanks for the reply. In fact I'm sending them down today to make an official complaint and see where that goes. They really are starting to apply the pressure though.


  • #6
    No Pants
    Closed Accounts Posts: 3,347 ✭✭✭No Pants


    Is any of the €120k still around or has it been spent?


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  • #7
    O Riain
    Closed Accounts Posts: 1,107 ✭✭✭O Riain


    Yes unforunately it was all spent. Loan was given about 8 years ago at this stage now and was used to buy half a house with another person.


  • #8
    No Pants
    Closed Accounts Posts: 3,347 ✭✭✭No Pants


    Sell house and use the proceeds to pay back the loan.


  • #9
    MugMugs
    Registered Users, Registered Users 2 Posts: 17,875 ✭✭✭✭MugMugs


    O Riain wrote: »
    Yes unforunately it was all spent. Loan was given about 8 years ago at this stage now and was used to buy half a house with another person.
    No Pants wrote: »
    Sell house and use the proceeds to pay back the loan.

    Cannot imagine one would yield the same return.


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