Loans on behalf of a third party

jazzye

Hi, My Parents (Who have a very bad credit history and can't get any form of credit now) have asked me to take out a £3000 loan on their behalf. Obviousley it would be in my name, and the bank would think it was for me, yet the money would actually be going to them. I was just wondering, what is the legality of this? It it actually allowed?
Thanks in Advance

sportage1kia

Hi there
I am not certain if its legal or not, try looking at other threads
I do know that you would have to make the payments on your parents behalf and that if you missed, if it would go on your credit history, also you may have problems with your bank. Sorry can,t help you more, but maybe other threads can.
Regards

KimYeovil

There's no legal problem (other than it's your loan and you're the one who will make the repayments (and since it's your credit history, yes, you should make the payments - don't give your parents access to pay in directly to the loan. Just let them give the money to you whenever and make the regular payments yourself.)) Of course, you have to make sure you can afford the payments when your parents are late or skip a payment.

CLAPTON

yes there is no legal reason why you can't take out a loan in your name and give the money to anyone you want

but think before you do this.

you will be legally responsible for paying the debt back.... can you comfortably afford this if your parents can't pay?

why do they have poor credit history.. presumably because they haven't repaid debts in the past?

what other debts do they have?

why do they need / want this money?


why can't they live within their means?

you may be doing them no favours by helping