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Original poster

Bank loan in mid 80’s

28 replies

jandalsinsummer · 10/07/2025 13:29

So a relative has got herself into some financial strife. I am trying to help. She lives off basic state pension and attendance allowance. She has a very small amount of savings.

I am furious to discover that her bank (same as mine hence even more furious) loaned her 10k 2 years ago.

1/3 of her income is going on paying off this loan and her credit card (another story)

I am cross with her and so furious with the bank. Just venting on here.

OP posts:
DelilahBucket · 10/07/2025 13:33

It's extremely rare for a bank to issue a loan to someone over the age of 80. Even if they did, they would have to have shown that they completed the necessary affordability checks. Are you sure this was given two years ago and not older and reloaded because it wasn't paid off? Who is the bank?

FloraBotticelli · 10/07/2025 13:42

I know you said you’re just venting but there might be a bit you could do if she wants/accepts your help.

You could phone the bank with her (they’ll need her permission to talk to you) to clarify the loan details and talk to them about her current circumstances and financial vulnerability. If she’s not great with finances, flag her lack of financial literacy with them as well. They might be able to review or agree a longer/lower repayments.

Also ask them to review how it was sold - if someone has advised her she might have grounds for an mis-selling complaint to the advice firm. If she’s been able to take the loan out herself direct with the bank without advice, did the bank do enough to check her suitability and explain the terms?

She might need to put all of this into writing (look up their complaints email address) as there’s quite a bit to check through.

AnSolas · 10/07/2025 13:44

Agree with DelilahBucket its a case of computer says no. Even if she had an old loan the bank should not be refinancing it if she cant afford to pay.

Has she assets like owning her own home?

And by way of payments.
Use any money to pay off the credit card debt which will have a higher interest rate first and then look at the 10k

What was the money for?

AlastheDaffodils · 10/07/2025 14:05

Banks just can’t win though. If they give loans to pensioners they’re accused of irresponsible lending. If they refuse to give loans to pensioners they’re accused of ageism.

It sounds like she’s been successfully repaying the loan for two years so it’s not obviously a case of irresponsible lending.

Spidey66 · 10/07/2025 14:08

I read the title as a bank loan given in the mid 80s. I thought 40 years was a long time to repay it!

bigdecisionstomake · 10/07/2025 14:12

This doesn't make sense - banks don't loan to people in their 80s except in very exceptional circumstances. If she only has SP and AA she won't have met the affordability checks. What is the term of the loan?

Original poster
jandalsinsummer · 10/07/2025 14:32

Yeah it’s weird!

firstly she does have a habit of being economical with the truth so if I am misleading anyone I apologise.

loan was 10k apparently she told them it was for a new patio (it was) and some ‘bits and pieces’

bank is Lloyds!

She owns her own house but whoever asked it’s completely unreasonable for a bank to use a house as security for a loan for a patio to an elderly lady with minimal income.

even if she told them she had money there isn”t any and never has been

@Spidey66 ha ha made me laugh thanks

@bigdecisionstomake 3 maybe 4 years borrowed 10 will be 12 ish once all paid back

@AlastheDaffodils really she hasn’t 1/3, of her very minimal income has been going on servicing this and her credit card, she actually just put her home on the market because she can’t afford to stay here. Hence I am trying to help.

@FloraBotticelli she doesn’t want me to complain because she thinks the bank won’t like her and won’t lend her any money next time she asks!! That’s a win!

thanks everyone

OP posts:
LifeBeginsToday · 10/07/2025 14:50

If the bank have used the house as security for the loan, is this an equity release scheme? Does she lose her house at the end?

Smudgeis13 · 10/07/2025 14:50

Anyone who is on basic SP plus AA is likely to be entitled to Pension Credit, providing they live alone and no one is receiving Carers Allowance. Look into it.

Original poster
jandalsinsummer · 10/07/2025 15:15

LifeBeginsToday · 10/07/2025 14:50

If the bank have used the house as security for the loan, is this an equity release scheme? Does she lose her house at the end?

No no it’s a straight forward loan, someone made a comment above if she owns a house ie there is a degree of solvency and security for the bank, but the bank is unreasonable in using that as a reasoning for allowing the loan.Otherwise hoards of 80+ year olds could borrow left right and center for all sorts of shit.

OP posts:
DelilahBucket · 10/07/2025 15:44

Lloyds doesn't exist, do you mean TSB?

Ilikewinter · 10/07/2025 15:52

Spidey66 · 10/07/2025 14:08

I read the title as a bank loan given in the mid 80s. I thought 40 years was a long time to repay it!

Same here 😂

jay55 · 10/07/2025 16:17

You could complain on the basis she shouldn’t have passed affordability checks and is a vulnerable customer.

My dad took out a loan (which he sort of could afford had he lived) when I could have just given him the money. It annoyed me that he got it so easily when he was so ill(he took the loan for an operation) and so it’ll be the very last thing paid from the estate when the house sells.

DelilahBucket · 10/07/2025 17:29

CatusFlatus · 10/07/2025 15:47

Show quote history

I thought it had been rebranded after the acquisition.

PiggyPigalle · 10/07/2025 18:03

The bank won't discuss it with you. It will have to be the lady who applied for it.

Decorhate · 10/07/2025 18:10

My aunt banked with a different high street bank her whole life. She thought the staff in her local branch were lovely and trustworthy. She didn't realise they were all being forced to sell products to customers as much as they could and she ended up with more ISAs than you are actually allowed to have and could not afford the monthly standing order into it that they persuaded her to set up. I was furious when I found out.

On the other hand they were very helpful when she started to have memory problems and she needed me added to her account to help her pay bills etc.

Original poster
jandalsinsummer · 10/07/2025 18:44

Oh that is sad @jay55 I am sorry for your loss

OP posts:
MammaTo · 10/07/2025 20:11

I used to work for Halifax which was part of Lloyds Banking Group and I believe we had similar application processes for lending products. If she’s done it in branch, the appointment has probably been recorded. We would ask people to verbally confirm their incomings/outgoings etc, it’s quite a thorough process.

Original poster
jandalsinsummer · 10/07/2025 21:39

MammaTo · 10/07/2025 20:11

I used to work for Halifax which was part of Lloyds Banking Group and I believe we had similar application processes for lending products. If she’s done it in branch, the appointment has probably been recorded. We would ask people to verbally confirm their incomings/outgoings etc, it’s quite a thorough process.

Well good if they have because they can see her outgoings including the money to pay off the credit cards and what’s coming in so they should never have loaned so much money to someone of her age. So hopefully if I am right then they can give people a bit more training and prevent it happening to other vulnerable older people.

OP posts:
MammaTo · 10/07/2025 22:06

jandalsinsummer · 10/07/2025 21:39

Well good if they have because they can see her outgoings including the money to pay off the credit cards and what’s coming in so they should never have loaned so much money to someone of her age. So hopefully if I am right then they can give people a bit more training and prevent it happening to other vulnerable older people.

Show quote history

Yeah definitely, I can’t remember how long they used to store the recordings for but it might be worth going down the complaint route to see if they can dig it out.

Willowskyblue · 10/07/2025 22:14

My FIL was missold a long term investment product at nearly 80 by Lloyds. We raised merry hell and after a few months his investment was returned, with interest snd and an ex gratia payment. It was easier then as there were actual banks to take action and see someone but perhaps going through one of the newspaper personal finance help columns might be an effective way. In the meantime I’d certainly support your relative to start a complaint and then once that’s been responded to, depending on the outcome, you could escalate to the ombudsman.

2XsecondChamce · 11/07/2025 22:25

I believe that big companies have to hold customer information for 7 years

How did this lady take out the loan ?
In person in a bank ?
Over phone ?
Via online banking ?

If it was 10k , how much is expected to be paid per month back ?
She may be able to negotiate a smaller amount to be paid back each month via the bank ?
What is the interest on the loan ?
She should receive a yearly statement from the bank in the post if she does not do online banking. Request a copy from the bank

She should receive a credit card statement in the post each month, if she is not, phone the credit card & request one
She can set up her credit card to be paid automatically each month (depending on how much she has spent)

Why is she moving ?
Has she been scammed out of her money ???

Good uck

ninjahamster · 11/07/2025 22:30

If the bank won’t do anything, I would suggest she goes to stepchange and sets up a repayment plan that will likely be a lot cheaper. It will affect her credit score but I don’t think that’s an issue at her age x

Bjorkdidit · 12/07/2025 06:47

You say you're helping her with selling her house due to not being able to afford to live there.

This might not be a bad solution if she's able to release money to top up her income so won't need to borrow in the future and also moves somewhere cheaper to run and easier to manage.

But also help her check eligibility for pension credit. You could complain about the loan and possible irresponsible lending but if she's been economical with the truth and/or the loan was within Lloyds eligibility criteria, you might not get far with it.

It's not necessarily the case that the loan was unaffordable if she owns her home outright, has low outgoings and the credit card was taken out after the loan, so that's what's taking up 'too much' of her income.

Plus as a PP says, automatically excluding older people from borrowing is age discrimination, especially when many have a 100% secure income in the form of a pension,a good disposable income on paper and large assets that can be claimed upon if the person dies or cannot/will not pay.