Issued Credit Cards whilst on benefiti

c8ndice

Yes it is possible for people on benefits to obtain bank loans, just as they can obtain credit cards, and a full current account with an overdraft.

PasturesNew

Some people on benefits get more than many working people. The fact they were on benefits hasn't been taken in isolation as a yes/no answer to credit. Indeed, some benefits income has been allowable to apply for mortgages.

It is the adult responsibility of people to cut their own cloth accordingly. The income they declared must have been considered sufficient, they must have been happy. So you can't blame the CC companies entirely without knowing the full details to check for fraudulent behaviour on either side.

carlita

M_Wootton wrote: »

I have since found out that they were 1500 pound overdrawn on their bank account and were approached instore as to having a loan for 2000 to clear their overdraft and have some spending money for themselves, she pointed out to the clerk that although she was working, the work in fact was voluntary and she did not recieve any payment for, this did not deter the bank from processing the application. so my question still stands is it possible for people on benefits to obtain bank loans.

did they not think ~ how are we going to pay back £2000 if we can't afford to pay back £1500?

you say they are "dim" can you expand on that? as it may help people understand :eek:

cifpower

If this person is so "dim" maybe someone should enact a Power of Attorney so control can be taken of the person's finances.

PROLIANT

Spoke to a rep today from the bank and apparently they view benefit income as more regular and stable than an employed person with a salary!
If they are on JSA then I doubt the bonk would lend them anything however they may get DLA so that is more of a permenant thing I suppose.

savagej

As some posted earlier about it being fraud I doubt that is the case. Some lenders such as GE Capital specifically state employed part time at leat 16 hours or on an invalidity benefit. So it all depends who the company is and what their lending criteria are.

pigsty213

My partner is disabled and on benefits. He wishes to apply for a credit card, at the moment he has to rely on me or his mum to pay for large purchases, he wants to have more insurance when purchasing a product than when paying by debit card!

As my partner and I don't live together I'm not sure if he can be an additional cardholder on any of my cards. I am not always with him when he wishes to make purchases.

He would only use the card in emergencies not regularly.

What card do you suggest he applies for and is likely to get?

Many thanks

dmg24

pigsty213 wrote: »

My partner is disabled and on benefits. He wishes to apply for a credit card, at the moment he has to rely on me or his mum to pay for large purchases, he wants to have more insurance when purchasing a product than when paying by debit card!

As my partner and I don't live together I'm not sure if he can be an additional cardholder on any of my cards. I am not always with him when he wishes to make purchases.

He would only use the card in emergencies not regularly.

What card do you suggest he applies for and is likely to get?

Many thanks

This would depend on how much income he has from benefits, and what his credit record is like.

[Deleted User]

M_Wootton wrote: »

Tthey are not the sharpest tools in the box and are somewhat a dim couple

"A fool and his money are easily parted"...

churchrat

[quote=PROLIANT;170 if they are not adult enough to take responsibility for their actions or have some form of social or mental disorder then they need seek professional help maybe starting with their GP.

I am sorry if this is not the cure you were hoping for but the fact of the matter is somebody is to blame, possibly both parties if protocol was not followed.
I find it very hard to believe the bank did not query employment status and income as it is mandatory in all credit application you fill in...And I have filled in quite a few.[/quote]

you would think that it is easy to get help if you are "dim" and cannot control your own money, but that is far from the case. I help a cousin, who has been assessed as having a learning disabiltiy and so is officaily "dim". He also has his own house, left to him by his mother.

He has been subjected to several "scams" both legal and illegal, since her death in 2000. I say scams when talking about the legal ones because it is obviuos when talking to him that he has learning difficulties, this does not prevent him from being "offered" countless loans etc by his bank (perhaps who see a nice fat easy commision). I am now a counter signatory to his account, which is very difficult as I live miles away from him.

It is not as easy as you would imagine to get power of atterny over someones life, and nor would I want to, I wanted a socail worker to offer independent help, but none are available. In short, it is very easy for someone who is "dim" to get themselves into a mess and find that there is very little help for them. This does not mean that they are irresponsible or fraudulent, just that they do not understand all the ramifications of thier actions.

To the OP--they will need more help than you can give them, and I would say that CAB are the best bet, but please make sure that they understand what is being said to them. Some local councils offer advice to peolpe in debt and on benefits, perhaps check your local website. You said that your friend worked for a local charity--could they help?
good luck with this, it can be difficult.