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  • FIRST POST
    • bertiewhite
    • By bertiewhite 17th Jan 17, 8:19 AM
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    bertiewhite
    Son's loan on credit file
    • #1
    • 17th Jan 17, 8:19 AM
    Son's loan on credit file 17th Jan 17 at 8:19 AM
    I've recently checked my credit report for the first time and found out that my Son's car HP shows up as a loan and is included in my overall long term debt.

    The HP was taken out for £15000 in 2014 and he asked me to be a guarantor. I can't remember why I was required - it may have been the loan amount or it may have been his age. He has now left home, he is over 21 and the loan amount now stands at £9000 so is it possible to hand over responsibility of the loan to him or am I tied in for the duration?

    He has always kept up repayments so is it actually better to have this loan on my credit report in this respect or would the fact that it adds to my overall debt be detrimental?
Page 1
    • Trentenders
    • By Trentenders 17th Jan 17, 9:10 AM
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    Trentenders
    • #2
    • 17th Jan 17, 9:10 AM
    • #2
    • 17th Jan 17, 9:10 AM
    Being on the hook for £9,000 of someone else's debt surely can't be considered a good rating factor for prospective lenders, so it's not helping your credit file (it may well be helping your son's, as are the regular payments and decreasing loan amount)

    The existing lender would only stand to lose by removing you from the loan, so I think that's a non-starter. Could your son perhaps look to refinance elsewhere on his own?
    • sourcrates
    • By sourcrates 17th Jan 17, 9:16 AM
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    sourcrates
    • #3
    • 17th Jan 17, 9:16 AM
    • #3
    • 17th Jan 17, 9:16 AM
    I wasn't aware guarantors for loans had anything recorded about that debt on there credit file ?

    I would query that with the CRA concerned.
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    • ashp
    • By ashp 17th Jan 17, 9:35 AM
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    • #4
    • 17th Jan 17, 9:35 AM
    • #4
    • 17th Jan 17, 9:35 AM
    I wasn't aware guarantors for loans had anything recorded about that debt on there credit file ?

    I would query that with the CRA concerned.
    Originally posted by sourcrates
    Agree with this. It should not be there providing he is all up to date payment wise (It is possible depending on the agreement) Do you have the same names? It's possible it could be showing on yours and not your sons if you have the same first and last name. Either way as above take it up with the CRA.
    Last edited by ashp; 17-01-2017 at 9:38 AM.
    • MrsTinks
    • By MrsTinks 17th Jan 17, 10:14 AM
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    • #5
    • 17th Jan 17, 10:14 AM
    • #5
    • 17th Jan 17, 10:14 AM
    Shamelessly stolen from Experians website:

    When you guarantee a credit agreement you are taking on a degree of responsibility for the debt, but not in quite the same way as entering a joint credit agreement. While the terms and conditions of guarantor agreements can vary, we wouldn’t expect to see a record of the agreement on the guarantor’s credit report (as would be the case with a joint account), unless of course the agreement defaulted. In that case, you may well see a default registered on your credit report too and, if payment was still not forthcoming, perhaps a county court judgment as well. So, as long as the family member pays the agreement on time every month – which I’m sure they will! – the debt will not show on your credit report and should, as a result, have no bearing on your own credit rating.
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    • MrsTinks
    • By MrsTinks 17th Jan 17, 10:17 AM
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    • #6
    • 17th Jan 17, 10:17 AM
    • #6
    • 17th Jan 17, 10:17 AM
    Interesting if you search different guarantor loan providers they don't agree- so amigo state it won't show on your file, yet others state they do. I suspect that this is down to the exact nature of the loan and if it's really a guarantor loan or if it's a sneaky joint loan disguised as a guarantor loan? Definitely challenge it though.
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    • bertiewhite
    • By bertiewhite 17th Jan 17, 11:15 AM
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    bertiewhite
    • #7
    • 17th Jan 17, 11:15 AM
    • #7
    • 17th Jan 17, 11:15 AM
    The credit report is through Clearscore (Experian?), the loan is through GMAC and he is actually my Stepson so our names are different but the address is the same from when he lived at home.

    My Stepdaughter's mobile Vodafone phone contract is also on my report. Again, there are no payment defaults but her address is different from mine on the report.
    • DCFC79
    • By DCFC79 17th Jan 17, 11:47 AM
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    • #8
    • 17th Jan 17, 11:47 AM
    • #8
    • 17th Jan 17, 11:47 AM
    The credit report is through Clearscore (Experian?), the loan is through GMAC and he is actually my Stepson so our names are different but the address is the same from when he lived at home.

    My Stepdaughter's mobile Vodafone phone contract is also on my report. Again, there are no payment defaults but her address is different from mine on the report.
    Originally posted by bertiewhite
    Why is your step daughters phone contract on your report, did she actually take out the contract ?
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • bertiewhite
    • By bertiewhite 17th Jan 17, 11:55 AM
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    bertiewhite
    • #9
    • 17th Jan 17, 11:55 AM
    • #9
    • 17th Jan 17, 11:55 AM
    Why is your step daughters phone contract on your report, did she actually take out the contract ?
    Originally posted by DCFC79
    I can't remember exactly why. It was 3 years ago now and she would've been 16 at the the time with a part time job. The payments were coming out of her bank account so maybe I was needed as a guarantor again? As far as I'm aware she is no longer on that contract but I'll double check with her. Again, I only registered with Clearscore a couple of days ago so I didn't realise that these accounts were still tied to me - I'm glad I know now.
    • MrsTinks
    • By MrsTinks 17th Jan 17, 12:16 PM
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    MrsTinks
    She wouldn't have been able to obtain a phone contract in her own name at 16. So I will assume you took it out for her or something strange happened there. Where the payments came out of makes no difference, at 16 she couldn't take out a credit agreement - that doesn't become possible till 18 unless she did't disclose her true age?

    Unless your step sons loan has defaulted then it shouldn't be on your file from what I can tell. That said, now he has a good history you may find that he can get a much better deal and without you as a guarantor - I would advise him to shop around for a better loan deal.
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    • DCFC79
    • By DCFC79 17th Jan 17, 12:50 PM
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    DCFC79
    She wouldn't have been able to obtain a phone contract in her own name at 16. So I will assume you took it out for her or something strange happened there. Where the payments came out of makes no difference, at 16 she couldn't take out a credit agreement - that doesn't become possible till 18 unless she did't disclose her true age?

    Unless your step sons loan has defaulted then it shouldn't be on your file from what I can tell. That said, now he has a good history you may find that he can get a much better deal and without you as a guarantor - I would advise him to shop around for a better loan deal.
    Originally posted by MrsTinks
    Thats what I was thinking re the phone contract.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • DCFC79
    • By DCFC79 17th Jan 17, 12:51 PM
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    DCFC79
    I can't remember exactly why. It was 3 years ago now and she would've been 16 at the the time with a part time job. The payments were coming out of her bank account so maybe I was needed as a guarantor again? As far as I'm aware she is no longer on that contract but I'll double check with her. Again, I only registered with Clearscore a couple of days ago so I didn't realise that these accounts were still tied to me - I'm glad I know now.
    Originally posted by bertiewhite
    Have you looked at your reports with Noodle and Experian ?
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • bertiewhite
    • By bertiewhite 13th Mar 17, 2:25 PM
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    bertiewhite
    Just an update on the stepdaughters mobile phone contract.

    I asked my SD if her phone was still in my name and if so that it was time for this arrangement to cease. A couple of days later she said that she'd contacted CarphoneWarehouse (who we originally had the contract with) and they said I could simply go in with a form of ID and get the contract transferred. I still wondered how the contract (taken out in 2012 for 18 months with Vodafone) was allowed to continue without my knowledge so I was looking forward to an interesting conversation with CPW.

    Anyway I was visiting her this weekend and suggested we both go to sort it out. Every excuse under the sun was brought up why we couldn't go so I became very suspicious and decided to phone them direct this morning.

    It turns out that the original contract ended early in 2012 and CPW no longer have a live account for my name. My next port of call was Vodafone direct who confirmed that they have not 1 but 2 contracts in my name, both taken out in October 2015 using my SD's address. When I asked how this was possible, the assistant said they would need to look into it as I should have been present so either someone at Vodafone has made a huge mistake or my name has been used fraudulently to not only extend 1 contract but also to take out another.

    I asked if this meant that the contract is void and could it be terminated immediately and was told that they will have to investigate but in the meantime both accounts have been suspended.

    I await a phonecall from Vodafone and an even more interesting one with my Stepdaughter.....
    • molerat
    • By molerat 13th Mar 17, 2:37 PM
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    molerat
    I doubt the first contract has been "extended", once the initial term ends the contract continues until cancelled as per the contract you signed. The second should not have been allowed though.
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    • bertiewhite
    • By bertiewhite 13th Mar 17, 2:49 PM
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    bertiewhite
    I doubt the first contract has been "extended", once the initial term ends the contract continues until cancelled as per the contract you signed. The second should not have been allowed though.
    Originally posted by molerat
    It hasn't which is why Vodafone themselves are concerned as to how this has happened. The original contract with CPW would have been a lowest price one just to get her a phone (being-a-willing-to-help-out-stepdad) but now the monthly payments are £28 for the phone contract and the 2nd is a mobile data plan at £12/month so the original contract with CPW was terminated. I could almost have understood if she had simply upgraded the phone online meaning that a new contract was in place but even then I'm sure a signature is required? Vodafone have stated that both contracts are new, taken out in October 2015 by which time I had been living on the opposite side of the country from her for 3 months!!!

    I did ask Vodafone if I didn't take the contract out myself will it be void but obviously until they find out what has happened, they can't say.
    • bertiewhite
    • By bertiewhite 25th Jul 17, 2:49 PM
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    bertiewhite
    A final update on the Vodafone issue.

    After a few weeks of discussion with Vodafone, this ended going to the Communications Ombudsman.

    Although they initially thought that Vodafone had acted fairly, further evidence was provided and coupled with the fact that Vodafone had made the situation extremely difficult to resolve, the Ombudsman decided that the contract should be terminated without penalty.

    Which is what I wanted in the first place.
    • Shakin Steve
    • By Shakin Steve 25th Jul 17, 6:14 PM
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    Shakin Steve
    A final update on the Vodafone issue.

    After a few weeks of discussion with Vodafone, this ended going to the Communications Ombudsman.

    Although they initially thought that Vodafone had acted fairly, further evidence was provided and coupled with the fact that Vodafone had made the situation extremely difficult to resolve, the Ombudsman decided that the contract should be terminated without penalty.

    Which is what I wanted in the first place.
    Originally posted by bertiewhite
    Thank you so much for updating the thread, that very seldom happens.
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