Apologies but this is urgent....

Al2008

Apolgies for posting this in here, it is in a way to with becoming debt free as my son is using this to clear payday loans etc....here it goes;

I have today recieved a credit agreement and direct debit form for a loan which I have taken out for my son as he is unable to get one. From the paperwork it is ok that it is going to be paid into his account as this is stated on the front letter. It is only a single application and I have signed the credit agreement. However, the direct debit is required to come out of his account and this is what I have put on the dd form. However, on this it states first customer signature and 2nd (if applicable). He has completed it with his bank details and signed it and I have signed the credit agreement, as he is not on the loan will it being his bank details and signature on the dd form cause any problems, or can you generally get a loan repaid from any account (in this case a Halifax).

Thanks in advance for any replies.

never-in-doubt

Al2008 wrote: »

Apolgies for posting this in here, it is in a way to with becoming debt free as my son is using this to clear payday loans etc....here it goes;

I have today recieved a credit agreement and direct debit form for a loan which I have taken out for my son as he is unable to get one. From the paperwork it is ok that it is going to be paid into his account as this is stated on the front letter. It is only a single application and I have signed the credit agreement. However, the direct debit is required to come out of his account and this is what I have put on the dd form. However, on this it states first customer signature and 2nd (if applicable). He has completed it with his bank details and signed it and I have signed the credit agreement, as he is not on the loan will it being his bank details and signature on the dd form cause any problems, or can you generally get a loan repaid from any account (in this case a Halifax).

Thanks in advance for any replies.

Usually the loan comes out of an account with the holding bank, unless you do not have an account. So you have a bank account with them and a loan, you'd use your bank details on the DD - and then the son would simply FP the same to you when it goes out or the day before....

That is the norm, anyway.

fatbelly

Or I guess you could set it up with the payments coming out of your account. Then cancel the d/d and replace it with a s/o from your son's account. As long as the payment comes in the bank has nothing to complain about.

If the payment stops coming in of course, you're liable. Which is why we don't recommend this sort of arrangement for debt-free wannabees.

DarkConvict

Just to add weight to fatbelly, much like I see on here and the mobiles forums, people take out contracts/loans for someone else. They end up not paying you/the bank, and the bank chases and destorys your credit file as you are the one listed. And it happens with family more than you would think it would. You must take these warning under strong consideration. Be very careful. Regardless of who pays, YOU are taking out the credit.

Al2008

Many thanks for the replies. To give him his due I have got a loan out previous and has paid it back fine.

I have already sent the form off, with his details on direct debit form do you think this will be ok or will it not be accepted based on this? Thanks.

DarkConvict

If they are unhappy with any of the details they will let you know. Its not unusual what you are doing so I do not think it will be an issue.