Family memeber ran £15k debt in my name!!

32_Briggsy

I've been a home owner for 5 years and went into my bank yesterday to apply to re-mortgage my house after splitting from my partner. To my shock and horror I was refused any credit from my bank, they were unable to tell me the reasons why, but advised me to look on experion to see my credit file. The advisor in the bank was confused as my income is more than sufficient to cover the money I'm looking to raise, I've never missed any mortgage payments and never been in areas / overdraft. My rating with the bank is A1.


So I got home and loaded up my credit file to find I'm £15k in debt! £10k loan and £5k credit card!! Then it clicked, about 10/15 years ago I was young and naively let me uncle pay his wages into a bank account that I now never use, its still in my old address. I totally forgot about it. But somehow he's been able to run this debt up. Now I'm stuck in no mans land as I cant raise any funds to pay my partner off the mortgage. I spoke to my uncle and he's come clean, he knows he's got this debt and willing to hold his hands up and claim fraud. He's pretty much passing this account as his own, he gets his wages paid into it and his bills come out of it too, but its in my name. Can anyone advise where I stand legally.

Money_maker

Did you allow him access to get money out as well as pay it in?

PasturesNew

Legally, there is only ONE route. You have to officially have him charged with fraud and for him to go to court and be convicted of it.

No company will rewrite your history just because he says he did it.

Only the police/a charge of fraud, can clear the records and give you what you want ... a clear file.

That's the only way to resolve the problem you have.

Tough .... but don't blame the system, blame your uncle. YOU wouldn't be taking him to court.... everything he did was his choice. It's HIS fault, not yours, you have to take that route as it's the only way to clear your name.

Angry_kittens

The first step is to contact the bank and explain the situation, ask for the account to be frozen at least so nothing else can happen. I'd then contact the Police and get a crime reference number, if he is willing to come clean then it should be dealt with relatively easy, and you should be able to get your credit file expunged.

Legally there is nothing wrong with letting someone have their wages paid into your account (unless the intent was nefarious - say avoiding tax), so if your permission started and ended here then it should not affect the outcome.

Candyapple

32_Briggsy wrote: »

I've been a home owner for 5 years and went into my bank yesterday to apply to re-mortgage my house after splitting from my partner. To my shock and horror I was refused any credit from my bank, they were unable to tell me the reasons why, but advised me to look on experion to see my credit file. The advisor in the bank was confused as my income is more than sufficient to cover the money I'm looking to raise, I've never missed any mortgage payments and never been in areas / overdraft. My rating with the bank is A1.


So I got home and loaded up my credit file to find I'm £15k in debt! £10k loan and £5k credit card!! Then it clicked, about 10/15 years ago I was young and naively let me uncle pay his wages into a bank account that I now never use, its still in my old address. I totally forgot about it. But somehow he's been able to run this debt up. Now I'm stuck in no mans land as I cant raise any funds to pay my partner off the mortgage. I spoke to my uncle and he's come clean, he knows he's got this debt and willing to hold his hands up and claim fraud. He's pretty much passing this account as his own, he gets his wages paid into it and his bills come out of it too, but its in my name. Can anyone advise where I stand legally.

So did your uncle live at your old address then? Otherwise how else was he able to receive the credit card and run up the debt?

Angry_kittens wrote: »

The first step is to contact the bank and explain the situation, ask for the account to be frozen at least so nothing else can happen. I'd then contact the Police and get a crime reference number, if he is willing to come clean then it should be dealt with relatively easy, and you should be able to get your credit file expunged.

Legally there is nothing wrong with letting someone have their wages paid into your account (unless the intent was nefarious - say avoiding tax), so if your permission started and ended here then it should not affect the outcome.

The advice above should be taken with a huge pinch of salt. OP you have been complicit in first party fraud by allowing your uncle access to your account and no doubt your worries have only just begun because as soon as the bank get wind of this they will likely hit you with a Cat 6 or 7 CIFAS marker. Then you'll truly be screwed for the next 6 years.

CIFAS Categories Explained
0 Protective Registration -- Recorded at the request of the person named.
1 False Identity Fraud -- Use of a false name with an address.
2 Victim of Impersonation -- Use, by another person, of this name and/or address.
3 Application Fraud (Facility Granted) -- Use of name reasonably believed to be genuine, but with one or more material falsehoods in personal details or other relevant information -; the facility was granted.
4 Application Fraud (Facility Refused) -- Use of a name reasonably believed to be genuine, but with one or more material falsehoods in personal details or other relevant information -; the facility was refused.
5 Conversion -- Conversion (disposal or sale) of goods (to which the hirer/buyer does not have title) under a hire purchase, conditional sale, contract hire, leasing or rental agreement.
6 First Party Fraud -- Opening an account or other facility for a fraudulent purpose, or the fraudulent misuse of an account or facility.
7 Aiding & Abetting -- Aiding, abetting or assisting, or conspiring with, another or others to fraudulently procure credit, or other facilities, or hire products or services.
8 Insurance Claims Fraud -- The making of a claim(s) under one or more insurance policy (ies) with one or more material falsehoods or by presenting a false or forged document.

32_Briggsy

I totally understand the consequences I know find myself in. I naively allowed my uncle to use a used bank account of mine to pay in his wages and totally forgot about it. He did have a card for the account. I was totally unaware he opened a credit card account and has a £10k loan with the bank.

By the sounds of the above post the outcome doesn't sound good, even if I wasn't fully aware of the damage he was doing in my name. I'm totally at a end as to what to do next? Contact, bank first? Or the police? Both.

With my main bank I use where my wages, bills and mortgage are with, surely this will not be stopped also?

32_Briggsy

Use a unused*

Hiddenidenity

You risk your current bank being stopped if you get a CIFAS marker against you.

Im not sure what the best advice is honestly, if you hadn't given him the card and permission to use the account then obviously the police would be the first and best step. However you essentially allowed it to happen even though you didn't know.

Why did he need to use your account? Nearly anyone can get a basic account.

Secondly can he pay the debt back?

32_Briggsy

From what I remember at the time, he says he couldn't have his own bank as he wasn't on the electoral register.

I believe he can pay it back yes.

Candyapple

Read:
http://forums.moneysavingexpert.com/showthread.php?t=5679442&highlight=cifas

You still didn't answer the question as to how your uncle managed to get hold of a new credit card.

You have 2 choices here:
1. Since the debts have presumably defaulted by now, wait for 6 years until the default date ends and then they will drop off your files. Also hope and pray that neither company starts CCJ proceedings against you in that time.

OR

1. Contact your bank and tell them that your bank account has been compromised as you gave your uncle permission to use it and he has now taken on more debt in your name. The bank will likely issue a CIFAS against you, but you might get lucky and they just close down your banking facility and leave it at that.

2. Contact Action Fraud and let them know your uncle has committed ID theft.

3. Await for Action Fraud to give you a crime reference number. Use this to contact the credit card company and the loan company and ask them to remove the debts/accounts from your credit file.

4. If you go down this second route the credit card and loan debt should hopefully be removed, however you may or may not get stuck with a CIFAS for the next 6 years in the process.

Even if your uncle can repay the debt - it's too late if the accounts are already defaulted. All that will happen is the default will be marked as satisfied and still means you won't be able to re-mortgage anytime soon.

Candyapple

Forgot to add, you should check all 3 of your files to make sure he hasn't taken out anything else in your name:

The free versions to check your credit files are below:
Experian: https://www.moneysavingexpert.com/creditclub
Equifax: https://www.clearscore.com
Call Credit: https://www.noddle.co.uk