Help. Niece entering into credit agreements she can't afford at her parent's address

easy

My niece is 20 years old, but quite immature, and very irresponsible.

She is just about to finish college, and is spending some time living at her boyfriend's flat, and some at her parent's home. Currently she has no income, and unfortunately rather poor prospects.

She has begun to open up credit agreements, giving her parents address each time. She has been refused an argos card, but has been allowed a phone contract (on which she has run up a £92 bill in one month), and says she has just signed a broadband contract, for broadband at her boyfriend's flat, but with her parent's address as the billing address. Apparently this will cost £1100 over 2 years, and they wanted it because it offered a 'free' laptop.

My sister (her mum) has tried to talk to her about NOT doing this, but she just argues and leaves. Meanwhile my sister is sick with worry about what it will do to their credit record.

Is there any way she can dissociate their address from these contracts?

Pssst

Mum needs to ring the big two credit ref agencies Experian/Equifax and make enquiries about dissociation. also if any mail is received from the companies involved,she needs to return it unopened marked not at this address.

MrsTinks

Just did a long reply and clicked the wrong button *sigh*
OK shorter version - people have credit records - addresses don't. Unless your sister and her daughter have joint financial products their records should not be linked and so your nieces bad debts should not affect your sister. If anything shows up on the credit file you can easily request it's removal.
If she wants to really be sure she can look into a CIFAS protection of her credit file - makes it harder to get credit (basically means creditors have to do more checks before they can approve an application in her name) for a fraudster.

So long as her daughter lives with her however I suspect there is little she can do to stop her taking out these agreements much as she will regret them later...

easy

Thanks Mrs Tine. I'll get my sis to check her records.

I looked at the CIFAS website, but can't see it's relevant in this instance. I don't think my niece is claiming to be her mother (but it is a possibility, I'll pass your info on)

sooz

Direct her (or get her mum to) to this website, specifically the DFW board. Let her read just how hard some people are working to try to clear debts of the sort she is making for herself.
If she really insists, let her keep making her own mistakes, but don't be there to bail her out.
Hopefully your sister will feel better knowing that it wont affect her own credit rating.

easy

sooz wrote: »

Direct her (or get her mum to) to this website, specifically the DFW board. Let her read just how hard some people are working to try to clear debts of the sort she is making for herself.
If she really insists, let her keep making her own mistakes, but don't be there to bail her out.
Hopefully your sister will feel better knowing that it wont affect her own credit rating.

Oh sooz, she's at the stage where she won't take any advice, and I think that would include looking on here.
She has decided she doesn't want to live with her parents any more. She's asked them to write a letter stating they are throwing her out, so she can get benefits to pay some rent to get her own flat. My sister has refused to comply with this request.

sooz

Your poor sister. Hopefully it's like toddlerhood...a horrible stage that she will eventually grow out of & become nice normal human being again.

myrnahaz

How does she manage to get these credit agreements if she has no income? Is she lying on the forms?

easy

myrnahaz wrote: »

How does she manage to get these credit agreements if she has no income? Is she lying on the forms?

We have no idea, but quite probably.

Mind you, I say she has no income, but actually I forgot. She works at a pub/restaurant part time, so she does have a small unreliable income.

MrsTinks

easy wrote: »

Oh sooz, she's at the stage where she won't take any advice, and I think that would include looking on here.
She has decided she doesn't want to live with her parents any more. She's asked them to write a letter stating they are throwing her out, so she can get benefits to pay some rent to get her own flat. My sister has refused to comply with this request.

Good for your sister! It sounds like your niece has some harsh lessons to learn and possibly is being led slightly astray by her boyfriend at the moment... want it all but don't want to pay for it...

Mini_Bear

this will be an expensive learnin curve. i guess all you can do is reassure your sis her credit file wont be affected.
it must be horrible seein ur niece ruin her youth through debt and know it will take years to pay it off not to mention all the stress.
best thing wud b for ur niece to move out then ur sis wont hav 2 deal with the baliffs etc. but lyin to the council about gettin kicked out of home is pretty irresponsible.
good luck to her, if banks are silly enough to lend to her then let them!