Stopping paydayloans

[gaz17]

My son keeps on getting payday loans does any one know of a way to stop him getting any more my son wasnt even on the electrol register and was able to get a loan so they cant be doing proper checks,the thing is he gets loans from different places but there doesnt seem to be a proper checks as some months he has upwards of £500 from 3 different lenders.he started getting loans before he was 18 we contacted loan company but they werent bothered as long as they got there money

[natscat84]

If your son was getting loans before he was 18, then he must have been using fraudulent details.

Report it to the police - a nice spell in the nick for fraud might stop him from applying for them, plus a CIFAS mark will mean lenders won't touch him with a bargepole in the future

[Eonel]

I am sure a spell in the nick is not realistically what a father would have in mind for his son.

There is nothing you can do to stop another adult from taking payday loans and getting into debt.

He has a life-lesson coming when he can not pay it back. He will get a default on his credit record and then no-one will lend to him again for six years.

& that is the silver lining for you and him. Learning the life lesson at 18 means by his mid-20s (when people are willing to lend to him again) he will know the consequences of borrowing irresponsibly.

My only advice to you is that you must not bail him out under any circumstances. The quicker he defaults & learns the lesson, the better.

[BugsyBrowne]

Originally Posted by natscat84

If your son was getting loans before he was 18, then he must have been using fraudulent details.

Report it to the police - a nice spell in the nick for fraud might stop him from applying for them, plus a CIFAS mark will mean lenders won't touch him with a bargepole in the future

Don't talk silly, the chances of someone spending time in the nick for a fraudulent payday loan application is zilch

[jason1231972]

Originally Posted by BugsyBrowne

Don't talk silly, the chances of someone spending time in the nick for a fraudulent payday loan application is zilch

That was my thought, too!

Even if his 'fraud' was reported via the proper channels (why??!), it would be extraordinarly unlikely to result in criminal trouble of any kind.

gaz17, regarding this:

my son wasnt even on the electrol register and was able to get a loan so they cant be doing proper checks

Lenders don't have to check that applicants are on the ER. The good ones with good rates do, because it's an extra piece of proof that the borrower does indeed live at the address they say they do (though it's easy to stay registered at an old address, such as parents), and negates credit risk to some extent.

Payday lenders aren't as concerned about credit risk as such - their rates are so high because they know from the outset that a large proportion of their borrowers just won't pay. So the ones who do pay cover the losses incurred from the ones who rip them off.

[jon1965]

Yet payday loans and their so called associations say they are responsible and do checks. Well they may do but not sure what notice they take of them. PDL companies need regulating and hopefully now the OFT are investigating they will be

[27col]

Just make sure that you don't bail him out when it all goes t**s up. He needs to learn that all actions have consequences. He will not learn this if there is someone there to help out.

[poppy10]

He's not a child any more, he makes his own decisions and takes responsibility for the consequences. You've given him all the help and advice you can, now it's up to him - if he wants to end up drowning in debt then that's his decision

[Miss_Spendalot]

Originally Posted by poppy10

He's not a child any more, he makes his own decisions and takes responsibility for the consequences. You've given him all the help and advice you can, now it's up to him - if he wants to end up drowning in debt then that's his decision

I have to agree with Poppy here, No matter what you say to your son he will most likely presume to know better. Sometimes with young people there is absolutely nothing you can do to stop their damaging behaviour.. I also agree that you really should not help him out of the debt he is going to get himself in as he will learn nothing but 'If I get into trouble then somebody else will bail me out'.

It is so hard as he is your son and you want to protect him but the truth is he will do what he wants regardless, keep telling him that this is not the right way forward but other then that you need to admit that there is nothing you can do.

Good luck and do not feel guilt or get yourself stressed out for a situation that you cannot possibly control x

[jon1965]

Originally Posted by poppy10

He's not a child any more, he makes his own decisions and takes responsibility for the consequences. You've given him all the help and advice you can, now it's up to him - if he wants to end up drowning in debt then that's his decision

Don't we all stay children to some extent in our parents eyes.
You know your son better than anyone here so hopefully you can be detached enough to know what will be best for him.
It's odd that while I went to my parents for little bits of help I have never told them about my debts, partly because i was always afraid my Dad would have been so disappointed in me . At least your son was able to tell you

[27col]

If you do bail him out the only result will be that you will be seen as a soft touch forever, and the Payday loans will continue, as sure as little eggs.

[MonkeyMad]

Originally Posted by jon1965

Yet payday loans and their so called associations say they are responsible and do checks. Well they may do but not sure what notice they take of them. PDL companies need regulating and hopefully now the OFT are investigating they will be

I'm no PDL fan, but don't turn it round and blame lack of regulation for your son spanking away his cash. If they take the risk of not checking Electoral Rolls thats their business and risk. I don't want this country to turn into a financial police state where it takes 6 months to get a loan whilst all known databases are checked to assess my situation brought about because of a steadfast band of numpties who cannot run their finances themselves.

[jon1965]

Originally Posted by MonkeyMad

I'm no PDL fan, but don't turn it round and blame lack of regulation for your son spanking away his cash. If they take the risk of not checking Electoral Rolls thats their business and risk. I don't want this country to turn into a financial police state where it takes 6 months to get a loan whilst all known databases are checked to assess my situation brought about because of a steadfast band of numpties who cannot run their finances themselves.

Maybe read the start of the thread, this guy was not even 18 when he first applied and he wasn't on the electoral register. There was probably an element of deception on his part but the PDL companies are equally responsible.
That was my issue, clear breaches of guidelines and their own policies yet as the OP said, they didn't give two hoots so long as they got their money.
Not doing identity checks should be enough to jhave their CCL taken away

[LLouiseR]

Its not illegal for someone to borrow money under the age of 18
Its not illegal for a company to lend money to someone under 18.
It is not advisable for either parties in my opinion, but thats not my decision.
Your son could still be held liable for the debt - see the CAB's website.

You can report them to the Office of Fair Trading, but they wont do anything in individual cases. They may, if they get enough complaints, start investigating their behaviour.
There will always be someone somewhere willing to lend money to anyone at a price. I don't think that its possible for you to protect your son from them all. I would agree wholeheartedly with the other posters - don't bail him out, if he's not realsed the consequences of his actions then he will keep making the same mistakes. Its a steep learning curve.

[jon1965]

Actually the OFT are taking complaints about PDL companies as part of their investigation. They won't act on the individual cases but the more the merrier

[iaintw]

http://www.oft.gov.uk/OFTwork/credit...liance-review/ << go here

[MonkeyMad]

Originally Posted by jon1965

Maybe read the start of the thread, this guy was not even 18 when he first applied and he wasn't on the electoral register. SNIP

I did read it. I see nothing to deflect me from my original assessment. Sometimes you just have to face the fact that 50% of the population are of below average financial intelligence, and the only way they could be protected from themselves is removal of their bank accounts from their own control. But then that would be an infringement of their liberty wouldn't it?