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Is this irresponsible lending

5 replies

Twain81 · 10/08/2023 23:12

Hi all.i’m posting for advice regarding my twin brothers financial predicament. I have his wife’s consent to post on here.

He’s my twin and we’re 42. He’s a great guy. A great brother, son husband and father.Sadly he suffers terribly with his mental health and this came to a Crisis point last year. Looking back he’s always suffered but it wasn’t something that was discussed in the 90’s. We ( him included) think that he may have some autistic traits.

in July 2022 he was struggling with his finances. He has a successful career but his wife’s business has struggled though covid and their income was reduced. They were already carrying some debt And this became less manageable. Unbeknown to us, this coincided with him suffering a massive Mental health crisis. Rather than ask for help he struggled alone. During thus time he took our two separate consolidation loans from a company called updraft for £8000 and £14000. Interest apprised 14%

all of this came to light when he reached breaking point and on the edge of taking his life. He got help and cognitive behavioural therapy , along with medication. He contacted updraft and told them all about his mental health issues and how these issues impair his decision making. They sent him some mental heaith support links But refused him any support as they seemed to loan affordable.

fast forward to Dec 2023. Brothers friend passed away and this triggered a huge breakdown. During this time he was offered, and accepted a further loan from updraft for £6000!! This has tipped him over the edge and he’s now missing payments and struggling. I became aware of this last month.

I am really angry that updraft allowed a third loan despite being aware of his mental Heath issues I accept that the first two loans were deemed appropriate, but surely they should have not lent further money to someone who they knew that as struggling?

OP posts:
Lindapsi · 11/08/2023 05:06

This sounds irresponsible to me. Have you sought any professional advice- the ombudsman perhaps?

IRecogniseTheLocationInThePicture · 11/08/2023 05:10

There’s some info here about irresponsible lending, vulnerabilities is lowers down. What has he spent the latest £6,000 on? Did he accrue more debt after the first 2 loans or does he still have that money?

https://www.financial-ombudsman.org.uk/businesses/complaints-deal/consumer-credit/unaffordable-lending

Unaffordable lending

Information for financial businesses on complaints we see about unaffordable lending and how we deal with them.

https://www.financial-ombudsman.org.uk/businesses/complaints-deal/consumer-credit/unaffordable-lending

Caprisunny · 11/08/2023 05:12

I think you need some professional advice.

In the first instance, they couldn’t have know the extent of his mental health issues. His family, didn’t even realise how bad it was.

In the second instance, I don’t think lenders can refuse to ever lend anyone money who has previously had mental health issues based on that alone.

However, I am guessing Dec 2023 is a typo and it was only 6 months between the 2 loans. So there maybe some irresponsible lending.

Do you know what he is spending it on? I would get some professional advice. As it sounds like it could be. But, if I was his wife I would want to know what he is spending it on.

The problem, for his family, long term is that he could just go borrow elsewhere. And this could continue. Do you feel he is that bad he doesn’t have capacity?

TheGirlInTheGreenDress · 11/08/2023 06:42

I’d get them to go and see the Money Advice Service or someone like that. A relative of mine volunteers there and has successfully helped someone in a similar situation.

BarbaraofSeville · 11/08/2023 06:52

What is their circumstances otherwise, are they both working now, do they own their own home, have DC etc?

It could well be irresponsible lending but no-one can say what the best solution will be without a full picture of their assets, all debts, income and other circumstances. Have a look at Moneysaving Expert for a guide to what to do, and also their 'money and mental health' information.

https://www.moneysavingexpert.com/loans/debt-help-plan/

https://www.moneysavingexpert.com/credit-cards/mental-health-guide/

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