Should banks give you options ?

[whichwaynow]

I know that the main aim of any bank is to make money. However I was wondering if instead of just trying to give you a loan they should tell you the options which are available to a person in debt. For example a copule of years ago the amonunt of debt I had with cc alone was starting to build up. My bank contacted me and said that they could see I was having problems and would I like a loan to help sort it out. Now I took the loan but at the end of the day it did not solve the problems and in fact made it worse. So if you are in debt and go to see your bank manager should they before you take the loan advise you that ther may be other options available and to seek help from CAB ect. Or at the very least should there be in banks a leaftet telling people where to go to get help with debt.

[Andrew Graveson]

Hi whichwaynow,
I think the presumption of banks is that the majority of clients are able to enjoy the benefits of using credit without it leading to any serious difficulties.
They are committed to working with clients and their agents when it becomes apparent that debt has become an issue via the British Bankers Association Code. See pages 24 and 25 here:

http://www.bba.org.uk/content/1/c4/52/2 ... ode_05.pdf

Through your own experience and that of others posting on this site you'll be able to judge how effective that code of conduct is and how different banking institutions interpret it in different ways.


Andrew Graveson
Independent Mortgage Broker & MD Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[PoorbutHappy]

When I started my IVA I looked back...and realised that my bank had just been exploiting me & wife, loans we couldnt afford, sneaking in PPI etc etc.

Anyway, an offical complaint (initially ignored), help of the FOS, and the bank "happily" agrees and gives us loads of money back. Naturally my £4,000 just disappearred off my balance in IVA.

So if they should have known better.....complain. Stamps are cheap, but atm I dunno when it would actually get there!