19/10/2005 10:59:00
A UK bank has been lambasted for forcing a couple to pay back more than £170,000 on a £35,000 debt.
The issue was raised in Parliament by Glasgow MP Tom Harris who described the actions of Halifax-Bank of Scotland (HBOS) as "heartless and unethical".
Robert Masterton and his wife, from Pollokshaws, Glasgow amassed debts of £35,000 following the collapse of their luxury car business in 1994, reports the Herald.
Mr Masterton had to convert the debt into a personal overdraft because he had agreed to act as guarantor for the firm's loans.
However, HBOS rejected his application to convert the overdraft into a fixed rate loan, forcing Mr Masterton to pay up to £11,000 a year on bank charges.
In 1999, the bank did approve a £50,000 ten-year loan to cover the debt and outstanding charges.
Mr Masterton said: "Even a loan shark would have let me go by now.
"We have suffered over ten years of hell."
"I could have declared myself bankrupt ten years ago, but I could not stand the shame.
"I took responsibility for my debts and this is the way HBOS has treated me."
Mr Harris used the case in Parliament as an example of why the government should implement the Consumer Credit Bill.
Under the bill a new scheme would be implemented to resolve credit disputes and bring in fairer charges for customers with large unserviceable debts.
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