Forms to produce when signing loan papers?

The_Dark_Defender

Hi,

I recently got approved for a personal loan of 7k. Bank asked me whether I was in permanent employment. I've been working for the same company since May 2007 and will be working until December 2008 at least. After this point it's a bit iffy as to what I'll be doing. My position is best described as contractor but I told the bank permanent. How big a mistake was this?

Following on from this, when I turn up at the bank will I be asked to produce any employment contract? Or is the fact that I've been approved enough at this stage?


Thanks in advance,

DD.

Mr_Angry_6

I think it is "approved" subject to satisfactory refrences. You current employer will probably be asked to supply a reference for you.

I don't know if they inform the Bank that your employment is contractual or permanent? Or whether that information would influence the loan decision. If the Bank was being diligent, it would spot you put a fradulent claim in, saying you were permanent, and not contract.

Your call.

The_Dark_Defender

Well it was a very informal chat over the phone to my local bank. For example, at the end of the conversation (basically sounded like she had all the info she needed) she just asked me whether the job was permanent ("and it's a permanent job, isn't it" were her exact words). I wasn't prepared and just went 'well yes' and she didn't say a thing after that.

I've messed this one up big time


Edit: What I'm saying is that I didn't actually go in with the intention of giving 'false' information. I was caught on the hop basically.

The_Dark_Defender

Anyone else got any opinions on this? Wrecking my head now

The_Dark_Defender

Bumpy bump. Really need some other advice on this situation as I need to sort it out asap.

Thanks.

The_Dark_Defender

Nobody at all?

duff67

The Bank needs to satisfy itself that you can repay. Hence the permanent employment question.

For all intense and purposes you are in permanent employment if you work for the same employer in an open ended agreement, so to speak. However if you know this is DEFINATELY going to end and then the future is unclear.....then why apply for a loan longer than your known income period ??

If your current income is going into the bank on a monthly basis (automatically - not cash) you won't be asked for wage slips eg proof. The decision will be made on that income remaining constant which you have already confirmed.

Mores the question on your repayment method if job ends - you shouldn't anticipate getting into difficulty later in life, just cause it gives you what you need now.

Also Loan Protector will be void, if you take it out, on the subject of job loss. If you claim the bank will then check your contact and if an end date is evident...then you knew and can't claim.


In escence if your happy funds will continue and you can repay, then leave as you've indicated.

Does this help......

The_Dark_Defender

Thanks for the reply.

The current project I'm working on is ending sometime early next year. There may/may not be another job after this (working for an accountantcy firm). What I do know is that I'll be there till the beginning of next year. I'm in their good books so if there's another job I'd be confident that they'd take me on. If not, I'll be on the job hunt again. Will they notice this? And if so, will they be making an enquires if they see that my wages have suddenly stopped?

My current income is going into my account automatically on a monthly basis. I do not have any loan protection.

I'm confident that I'll have the funds to repay the loan over the 3 year period (I can sell various items if times get desperate - e.g. Car). My main concern is that I'll get in serious bother over the whole permanent employment lark. I don't know whether I'll be putting my foot in it if I ring them up now and let them know that I was sorta mistaken in saying 'permanent'.


Looking forward to any more feedback, cheers.

jonesMUFCforever

I think what you want to hear is that you are not in permanent employment.
You are on a contract.
IMO you should not proceed with this loan especially if you have agreed to PPI because it will not pay out and you will have wasted your money.

The_Dark_Defender

I haven't agreed to PPI. Should I ring the bank and inform them that I was incorrect in saying that I was in permanent employment? What is the best way to phrase this? Will this have any negative consequences or will it be okay because I realised my error before I signed any papers?

jonesMUFCforever

The_Dark_Defender wrote: »

I haven't agreed to PPI. Should I ring the bank and inform them that I was incorrect in saying that I was in permanent employment? What is the best way to phrase this? Will this have any negative consequences or will it be okay because I realised my error before I signed any papers?

Yes I think you should.
If they still want to lend you the money (and they might) fair enough but you would be in the clear so to speak.
IMO you are very close to committing a fraud at the moment.