Bank Loan to elderly People

B

Bentley

Guest
An elderly relative of mine aged almost eighty years managed to secure a loan of €40,000 euros six months age. He was retired twenty years ago and was on an income of approx €30,000 euros and he had a dependent spouse. He died very suddenly eight weeks ago and his widow has only just found out about the loan. There is an outstanding balance of €25,000 euros due on this loan and on death the balance in the couples bank account was €35000 of which €7000 was spent on funeral expenses.
I have tried as a near relative to find out details of this loan eg what collateral was given and how could an elderly person be given such a loan without any insurance being taken out. I have not had any of my calls to the bank manager returned.
Could anyone advise what is the normal guidelines for the issuing of loans to elderly people and where should I go from here. i suspect the money was used to purchase shares which have now lost their value. Surely elderly people should receive independent financial advise before embarking on risky ventures like this.
 
The finanacial ombudsman is probably your best port of call. if you can't get anywhere with the bank in question. He will investigate and bring a case against the bank if necessary. Here is their website:
[broken link removed]
 
I suspect they obtained a lifeloan from BOI. In order to obtain a lifeloan the deceased's wife would need to consent to the loan. A lifeloan is secured against the couple's family home and usually only becomes repayable when they both pass away or have both moved out of the house for more than 6 months,

BOI were giving out life loans in the last few months so maybe this is a possibility.
 
Thank yoy for your reply. i will certainly check out that option.
 
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