Issued Credit Cards whilst on benefiti

darcyvuqua

if it the bank they do bank with they will assess the customer on regularity of payments into it and amounts if they see a payment pattern and that it is regular they will see that as a income!

M_Wootton_2

There is the problem then they have their benefits paid into the bank, so if that is a banking assumption, surely they should still ask questions pertaining to employment. I wonder how many people on benefits have had this happen to them.

M_Wootton_2

darcyvuqua wrote: »

how are they getting ripped off!!!!!!!!

I do not mean they are getting ripped off by the banks, they usually get ripped off when buying certain items, that all. ie they would buy something on someones say so, if they purchased a car that was falling to bits but the owner told them it was a reliable car and that would be it, they would buy it.

Ember999

M_Wootton wrote: »

They were offered the loan and card in-store, questions were asked of them but none pertaining to if they worked or not, they are not the sharpest tools in the box and are somewhat a dim couple when it comes to things they do not understand, they are too trusting and always get ripped off. could i have a more constructive reply please as this is causing a lot of stress.

I have never heard of a credit card application that doesn't either ask for the employer details or ask for a figure which represents a joint family income! Whoever is giving you this information is telling porkies if you ask me. It seems they maybe 'lied' on the application and if it transpires that they were indeed on 'benefits' when they applied and the lender was unaware of this, so could not make a uniformed choice as to their likelihood of repaying the debt, it amounts to FRAUD :mad:

Ember999

M_Wootton wrote: »

Hi again, is it practice for banks to issue loans to people on benefits and dont ask for employment history, it seems a tad strange when i apply for a loan i have to give details of employment etc?

You are correct - all loan applications and credit card applications include a request for information regarding employment and income.

NickX

M_Wootton wrote: »

Hi again, is it practice for banks to issue loans to people on benefits and dont ask for employment history, it seems a tad strange when i apply for a loan i have to give details of employment etc?

I think people are generally asked for employment and salary details when they apply for credit. Are you sure that these people were not asked ?

However, circumstances do change, someone earning £100k per year could apply for credit, then lose their job the next week and be on benefits.

Its not a foolproof system, although I am surprised they were approved for credit if they were only on benefits at the time of application.

cifpower

M_Wootton wrote: »

There is the problem then they have their benefits paid into the bank, so if that is a banking assumption, surely they should still ask questions pertaining to employment. I wonder how many people on benefits have had this happen to them.

I live on benefits (IB, IS, DLA) due to a mental condition (bi-polar) and have 2 credit cards and several other credit agreements. I have handled these accounts responsibly and have never missed a payment. When I have a high spell I have, in the past, spent a lot of money on things I do not need (X Box 360 for example) but end up selling them on ebay or taking them back for a refund.

What I'm trying to say I suppose is that being on benefits should not preclude you from applying for credit IMO if you can behave responsibly.

Ember999

carlita wrote: »

did they apply for the cards? did they fill in the proper info?

did they spend the money? did it make them feel suicidal spending the money they couldn'tpay back?

unless someone from the bank came round and forced them at gun point to spend the money surely they are the ones to blame?

This is the very reason that loan companies and credit card companies 'credit check' people.....people like this like to obtain credit but rarely if ever pay it back...and these new 'legislations' are giving non-creditworthy people a fine excuse to try to wriggle out of paying back what they borrowed...it's wrong! Creditworthy people will pay back what they borrow at all costs....and funnily enough they are the one's who can still get credit right now, in the worst financial market ever...I wonder why eh?

Ember999

cifpower wrote: »

I live on benefits (IB, IS, DLA) due to a mental condition (bi-polar) and have 2 credit cards and several other credit agreements. I have handled these accounts responsibly and have never missed a payment. When I have a high spell I have, in the past, spent a lot of money on things I do not need (X Box 360 for example) but end up selling them on ebay or taking them back for a refund.

Well done you! Your credit history will reflect that you have handled your accounts well and that you pay back what you borrow. Not all people on benefits borrow and try to wriggle out of what they pay back and I am sure you are a great example to others by your responsible attitude to borrowing money :T

M_Wootton_2

NickX wrote: »

I think people are generally asked for employment and salary details when they apply for credit. Are you sure that these people were not asked ?

However, circumstances do change, someone earning £100k per year could apply for credit, then lose their job the next week and be on benefits.

Its not a foolproof system, although I am surprised they were approved for credit if they were only on benefits at the time of application.

Well thats my point they said they were, and these people are as straight as they come and would not lie, especially to me, I will be seeing them soon to ascertain more information, if the bank did issue a loan without asking employment details would they be able to do anything about this.