It is a serious couple who meet in the courtroom in Møre og Romsdal this week. In 2013, they came from Romania to Molde for the first time and settled down. Nine years later, they have a loan of over NOK 7 million, and are unable to pay it back. Most of the debt comes from loans granted by Sparebank 1 SMN. – The bank should never have given them these loans in light of the couple’s income and debts. I think that’s irresponsible, says their lawyer, Ingvild Slettebø. There are strict rules for how big a loan you can get from the bank. The Financial Agreements Act states that banks are obliged to advise against loans for which customers will not be able to pay installments. The goal of the rules is to prevent people from becoming debt slaves in the face of banks eager to lend. Associate attorney Anne Ellingsgård and attorney Ingvild Slettebø. They claim the bank lent far too much to the couple. Photo: Roar Strøm / news Received loan after loan The financial problems for the Romanian couple did not start until after a few years in Norway. In the spring of 2014, the couple received a loan of NOK 1.5 million for a shared flat. Two years later, they asked for a loan almost twice as large for another house – with extensive renovation needs. Then things got worse for the married couple. They got a car loan, took out credit card debt to renovate, got a loan for yet another flat – and in the end had more than 7 million in debt. This is said to have happened despite the fact that only one of them was in permanent work, and that their expenses were rising dangerously. The lawyer for the married couple claims that the bank has deliberately entered the wrong figures in several of the assessments of whether the married couple were to receive new loans: NOK 430,000 in annual salary for the husband, who was unemployed Expenses for only one child, despite the couple having two Too high income from a flat they rented out Too low municipal taxes, insurance and childcare Lack of information about existing home loans Lack of information about credit card debt and consumer loans Claims the bank advised against loans Sparebank 1 SMN rejects that they should write off parts of the loan or pay compensation to the couple. Maren Sofie Abelseth, who is the bank’s legal representative, said in court that it is up to the individual to assess whether they should take out a loan, and pointed out that the couple are highly educated. She also claimed that the bank twice advised the couple against taking out a loan. She does not wish to answer questions from news and does not wish to be photographed during the trial. Legal representative Maren Sofie Abelseth represents Sparebank 1 SMN in court. She does not wish to comment on the case to news. Photo: Synnøve Hole / news – Shouldn’t be possible Experts from various parties have repeatedly warned both banks and customers about high loans. The lending regulations state that banks cannot lend more than five times as much as the loan applicant owes. Subject director Jorge B. Jensen at the Consumer Council has been asked how he considers lending over NOK 6 million to a customer with an income of just over NOK 500,000. He emphasizes that he does not know the specific case in Molde, but speaks on a general basis. – Today, it should not be possible for a bank to grant loans and credit that amount to 11-12 times the household’s income. In that case, it will be a bad credit assessment and a breach of the lending regulations, says Jensen. – But don’t the customers themselves also have a responsibility? – It is the bank that carries out the credit assessment and they must ensure that it is carried out correctly. The bank is the professional party and relies on far more expertise than the loan applicants. It takes quite a lot for a bank to be released from this responsibility, he says. Subject director Jorge B. Jensen at the Consumer Council believes that the bank has a great responsibility in guiding its customers. Photo: The Consumer Council Debt increases for the family The couple in Molde is today left with a debt of over NOK 7 million, which is constantly increasing. They fear that they will become debt slaves for the rest of their lives. In addition to the loan from the bank, they have taken out large credit card loans and claim it has been absolutely necessary, among other things to be able to pay installments to the bank. Now they demand that Sparebank 1 SMN must cancel parts of their loan, possibly pay out compensation. – The married couple have done the best they can based on the circumstances they have found themselves in and tried to solve it in the best possible way, says their lawyer, Ingvild Slettebø. On Thursday, the couple will explain themselves to the Møre og Romsdal district court. Sparebank 1 SMN’s branch in Molde. Photo: Roar Strøm / news
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Lit NOK 500,000 – got a loan from the bank of over NOK 6 million – news Møre og Romsdal – Local news, TV and radio
