Information to help you deal with your CRF's

Moderators: TalbotWoods, JaneClack

By t0m86
#307213 In August 2009 I took out a business loan of £15,000 from NatWest to start a small retail shop. At this time NatWest were lending £3b to new business start ups. They lent me the money despite me having a half ***** business plan, no finance plan, no job (having been a student for the previous 2years) and no fixed abode (I was living on a mates sofa!).

Now, as much as I appreciate that I was hugely nieve in my judgement, surely it is the job of a 'business manager' to asses my situation based on more than whether the computer says yes!?
I have spoken to a friend who was an ombudsman who told me 'you borrowed the money, you've got to pay it back' which I have accepted. However, do I have a case here for being mis-sold a loan that, in reality, should never have been lent to me?

The other question I have is why does the loan not appear on my Experian credit report? The loan was a business loan, taken out in my name, at my parents address. Since the business went belly up in 2010, I have entered into an agreement to pay the loan back via an recovery agent (owned by NatWest, they still send me statements).

If it doesn't show up on my report, will it ever or is it lurking behind the scenes still affecting my ability to get credit?

If anyone could shed some light on this I would be massively grateful. Finding help from any of the government approved bodies has proved as good as useless!
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By TalbotWoods
#307223 Going to be somewhat cruel here, but a loan discussion is purely based on the information provided. If it fits the criteria then the loan is granted. So in this case if the computer say yes for a business start-up, then yes was the answer.

No it is not the responsibility of the business manager to vet people, that is what the computer does via the Credit Reference files, and again is based on the information you provided. As it is, you have indicated to us that you used an incorrect address, (your parents) had you have given your friends address, then it is very possible that the loan may have been refused.

But all that aside, as the law stands there are very few reasons why the loan should be set aside (written off) some include sever mental health issues being diagnosed and declared at the time, technical error in the loan procedure where the loan is issued to the wrong person, failure of the bank to comply with the Banking Acts (very rare), etc. But from what you have described none of the normal write off reasons seem to apply.

It may not be showing on your report if it was a business loan, as they often get ascribed to the business address rather than the individuals address, so in this case it may be associated with you at your shop address, unfortunately if the lender moves legal, such as a CCJ, then that normally re-associates the account with your current address, and links the business address to you.

If this is your only debt then I would advise you keep the repayments up, as that will avoid any court actions, but if the amount is to high, or there are multiple debts, then I would suggest giving one of the following three organisations a call, who specialise in dealing with these sorts of issues:

PayPlan: Is a national organisation with approaching 20 years of experience in dealing with all kinds of financial situations, no matter how bad they are.
Their advice and help starts with a simple phone call to 0800 280 2816

NDL: Is an organisation that advises you on solutions that are available to you, you can contact them on 0808 808 4000

CCCS Is an organisation that advises you on available solutions with your financial problems. You can contact them on 0800 138 1111

By t0m86
#307233 Thank you for your honest reply Tim.

I appreciate entirely that the money I borrowed was my responsibility. I have come to terms with this now and have been repaying the loan on a monthly basis for a while. I borrowed the money, I spent the money, I shall pay the money back...simple as that. I just hate being tarred with the same brush as people who obtained easy credit to live well outside their means wasting it on cars, holidays and boozing!

As a young person you often rely on your piers to offer advice and support, I don't feel I was provided any of this by NatWest. It was a case of 'how much do you want?' (having initially asked for £20k only to be told 'we'll try for £15k') which to a young person is not what I would call responsible lending, especially in a time of economic uncertainty. They surely have a responsibility to look at each individual case and offer their knowledge on whether or not the business is viable. I appreciate that this isn't how the system works but...shouldn't it be?

I think the recent Channel 4 program 'the bank of Dave' highlights the issue that lending has lost its personal touch. A proper business manager would never have lent me the money, regardless of the personal information I provided, to get a tick in the box, he would more than likely dissuaded me from starting the business before it was fully thought out.

To confirm what you said, if I keep paying my regular payments the business loan should never appear on my file and in 2-3 years I should be able to apply for finance at a reasonable rate again?

Needless to say I am much more shrewd with my lending now, and will put a lot more planning into my next business venture, all great entrepreneurs fail the first time round....don't they?

Thanks again