Help, will my lodgers debts affect me?

josephine33960

Hi

I'm looking for some advice, I currently rent out my spare room and after numerous terrible flatmates have found a guy I get on really well with. He has lived with me for about 9 months and always pays his rent on time, and will chip in for any bills within a couple of weeks. He has recently confessed to me that he is struggling with debts, this is something I completely understand as I am also in the process of paying off my debts. However I will always pay the minimum but I think he has been burying his head in the sand and there have been many calls from creditors to the house phone, I don't know the full extent of his debts but I believe there are a couple of credit cards, one loan and a large child support debt which the CSA are now activley chasing him for.

He is a great guy and I hate to be worrying about myself when he has problems, but can any of this have an affect on me? For example if baliffs come round can they take any of my things? Also can it have an affect on my credit rating or can the flat be credit blacklisted because of him? I don't think it can as everything is in my name the only things he is registered on is the council tax and electoral roll. Any advice would be appreciated.

Thanks

tek-monkey

josephine33960 wrote: »

and a large child support debt which the CSA are now activley chasing him for.

I wouldn't worry about that one, I've unfortunately dealt with two absent fathers and if they decide to not pay the CSA generally leave them alone for easier pickings. My GFs ex husband walked 6 years ago leaving a son, has never paid a penny in maintenance and now has a further 2 kids. He just refuses to pay, and the CSA have been completely unable to do anything about it.

I suspect they only go after people when the parent with custodial rights receives benefits, they don't seem fussed otherwise

poppysarah

The debts should be separate as they're different names.
You could do credit checks on yourself to find out what's listed to make sure there's no confusion.

cashndash

I'm no expert, but many, many years ago, my mum applied for a store card (for a store she actually worked in). She was refused!!

When she checked her credit rating, a traveller who lived locally had used our address (we lived in a pub) and he had debts. These were logged against the address and caused my mum these problems. That is why you are often asked to provide your address if you've lived somewhere for less than 3 or 5 years.

This was a long time ago and it may now have changed, but may be worth checking with CAB?

tek-monkey

I got refused a bank account by Natwest due to my bad credit history, at the age of 16.

startech

Debts are not marked against properties, they are against individuals. Your lodger's debts should not have a bearing on your own credit history.

crusty_toenail

have things changed startech?

My sis told me a house she lived in was blacklisted and she couldnt get a mortgage later on because of it and spent a long time trying to fix her credit record.

I also rent, and the previous renters seemed to be badly in debt and I wonder if I apply for a mortgage perhaps if I am going to be blacklisted because of the previous tenants!!!!!

welshy_2002

Debts used to sometimes get linked to properties (years ago), but this is no longer the case. There's no real mechanism for it anymore and if his debts were ever linked to your property, you would only have to inform the 3 credit scoring companies to get this altered..

As for creditors entering the property. No one is allowed to enter your flat. The only exeption is with a court order and with the police in attendance. Just get him to talk to them and tell them he's your tenant.

I know it's not as straight cut as this, but if he's getting chased and debt collectors are turning up, I'd be wondering how long until he cannot afford the rent. Can he not go back to his parents\family?

anselld

welshy_2002 wrote: »

Debts used to sometimes get linked to properties (years ago), but this is no longer the case. There's no real mechanism for it anymore and if his debts were ever linked to your property, you would only have to inform the 3 credit scoring companies to get this altered..

In that case why is there a section on "linked addresses" in your credit file? Mine still shows every address I have lived at and I had to get it changed to correct some I never lived at!

I agree it shouldn't affect your rating under a different name, but the address data is certainly recorded.

welshy_2002

anselld wrote: »

In that case why is there a section on "linked addresses" in your credit file? Mine still shows every address I have lived at and I had to get it changed to correct some I never lived at!

I agree it shouldn't affect your rating under a different name, but the address data is certainly recorded.

Taken from here

A linked address may be created when an account moves between addresses, such as when
you move house, or when a lender checks your records at your previous address, or if you tell
a credit reference agency about a previous or forwarding address.

A linked address may stay on your credit file as long as this information is relevant for credit
referencing purposes.

- That's the definition anwyay.

I'd agree it's not an exact science and to be honest, I'm no fan of the credit scoring companies. They charge me to get my own data

beaujolais-nouveau

josephine33960 wrote: »

He has recently confessed to me that he is struggling with debts... I think he has been burying his head in the sand and there have been many calls from creditors to the house phone, I don't know the full extent of his debts but I believe there are a couple of credit cards, one loan and a large child support debt ... can any of this have an affect on me?

He sounds as if he is in a very bad situation and allowing it to get worse. Aren't you worried that he will start nicking your stuff to sell down the pub or on eBay to alleviate his struggle? I would worry. Police would be no help to you, if he starts stealing from you, because he doesn't need to break in to nick your stuff.