There was no credit crunch for my grandma

[twinsetandpearls]

My grandma has just died and we have been soring though her papers.

She sold her house about 25 years ago and gave all her money to away to a strange cult in India. She has then lived in rented accomodation and then council housing ever since. Over the last ten years since having a stroke we have been watching her slowly deteriate into dementia and sink into poverty. We found out last year that she had been falling prey to all sorts of con artists and for that reason had sold most of her furniture, was chopping some of it up to provide fuel for her fire and when that ran out she was sat in a freezing house not eating very much. We started giving her money to top up her pension but there was little improvement.

Going through her papers we can see just how bad things are, for about 5 years she ahs been borrowing heavily from the bank and lst year took out a final loan for £15K. I just don't understand why anyone , never mind a bank would lend this to a woman who had not worked for over 20 years, had no assets, no life insurance and was in and out of hospital facing death. I can accept that if the application was done by post they would not have noticed her mental deterioratio but if they had even spoken to her the mental deterioration would have been clear.

bloody hell twinset!! how sad, bastard thieves!

It was Natwest Bank not some loan sharks.

That is really sad twinset!

So sorry. The banks should be ashamed of themselves.

I would say you have a definite case for mis-selling with NatWest. Talk to their complaints department - am pretty sure they're not allowed to do this.

That's horrendous, twinset. What happens now? Does her estate have to repay the loan?

Yes, the cult and the bank I mean! and yes, Natwest should be ashamed of themselves. Grrrrr...

I agree with traceybath, T&P. It does sound like a definite case of mis-selling. Was the final bank loan covered by insurance? What did she secure it against?

I get seriously hacked off with the immorality of banks and their complete lack of accountability. I feel for you.

My sister is a complaints manager for a high street bank and deals with cases like this - sales staff have high targets and sometimes a little mis-selling of products goes on (allegedly).

I think there was a panorama documentary about the like last year where they showed staff altering people's circumstances on applications so they could get loans.

Very irresponsible on the banks behalf and utterly appalling for the people involved who ended up with debts they never had any hope of re-paying.

She has no estate, she has sold everything of value apart from two rings which are probably worth little more than a few hundred each. That is why I don't understand how she got the loan.

Something very wrong has happened. Whoever is the executor of the estate needs to speak to the bank and ask to see copies of all the documentation relating to the loan and any other loans she had with them.

Am sorry for your loss T&P and now having to deal with this messy situation. I suspect she got the last loan to service the re-payments on other loans which is so sad.

That's terrible

She has kept all the papers ,although we cannot see any application. Yes she was continually topping up loans.

The will is another complication, as it lists things that don;t exist or she sold a long time ago. The only things of value ( which is very little, we are talking hundreds) have been left to her sister and the solicitors who are the executors. I may also have to pay for her will to be dealt with even though none of it exists, except what is going to the solicitor!

gees, what if you couldn't afford to pay for the will to be dealt with?

I wouldn't have thought so it was in her name, so should die with her.

I am sorry for the loss of your grandmother.

You are not liable for a loan if someone dies unless your name is on the loan agreement or it is joint names.

Just one final thing - if it was mis-selling the bank should offer compensation.

I can't afford to pay for the will to be dealt with expat, or the funeral we are going through very difficult times ourselves financially. I will have to find the money though.

What bothers me though is that a confused ill old woman spent her last months living in a cold empty house because people had conned money out of her.

Twinset, please double check the situation with that loan. I'm not at all sure the loan dies with her. That's not been my experience, in any case.

I'm so sorry it's left you feeling so sad.

My mum said the loan papers said to be paid in the event of death. So I am assuming it will come from the estate which is non existant. She has an appointment at the bank tomorrow.