Taking out a loan and then emigrating?

GEEGEE8

Hi there,

I have a friend who is going to do this, it's a 15k loan that they are taking out in the UK, and next week they are going to New Zealand/Australia for at least 2 years, but with the plan to stay out there. That person has already been out for a year working and so they know they like it out there, and plenty of work for them.

They have been asking me what could happen to them, as I've been bankrupt before.. but I just don't know what to say to them.

Obviously it's wrong and immoral, and I don't condone it.. but I'd like to make them aware of the possible consequences of it all.

They are taking it with a loan company, as opposed to a bank.

Can anyone advise of what could/would happen?

*This isn't for me by the way, I'm off to uni this year and couldn't get a 15k loan if I begged! It's a friend that I just don't want to see ruin their life*

euronorris

I thought that there was a debt collection agreement between AUS and the UK? I'm not sure how effective it is, but definitely should be considered.

Other than that, I'm really not sure. Sorry.

jon_boy75

if unpaid it will eventually become a bad debt, eventually show as a default, and eventually (maybe) end in a County Court Judgment. Then, after 6 years, from the date of the default or CCJ, it will drop off their credit file, they can come back, get another loan and do it again

if they really must go ahead, tell them to do it to Santander, or some other disgraceful bank

(ps: i dont condone this behaviour, but neither do i condone the behaviour of the banks)

Tixy

If they have any UK assets these could be at risk from baliffs once a CCJ has been granted. If they have a UK property then a charging order could be placed on it. A judge could grant a forced sale order on the property. Even if they don't have a property now, is there a chance they could inherit a property?

The creditor could wait for 5.5years from them defaulting before they take out the CCJ, which would then remain in place for 6years from that.
Also whilst courts rarely agree to extend a CCJ after 6years, one of the instances where they well might is if someone had been out of the UK as the creditor can justify why they have not been able to recover the money within 6years. So even if they came back in 15+years they could still find they are being chased for the money (and massive amounts of interest & charges).

In addition they could also be made bankrupt in their absence.

GEEGEE8

Thanks for the replies.

They have no assets at all, and no inheritance due unless someone suddenly died.

I don't think they really care about the CCJ or bankruptcy, I have tried to explain the effects but they are in the mindset that they won't be returning anyhow, so it doesn't matter to them.

I have told them to make the first 4 or 5 payments on the loan, so at least if they did get made bankrupt then it wouldn't look like fraud.. not sure if that will help or not though? Just worried they could get a BRO/BRU for taking money when they knew they weren't paying it back.

GEEGEE8

euronorris wrote: »

I thought that there was a debt collection agreement between AUS and the UK? I'm not sure how effective it is, but definitely should be considered.

Other than that, I'm really not sure. Sorry.

Thanks for the info.

Anyone know anything further about this?

50quidonRED

so how exactly are they going to be approved for 15k?

no assets
must have no job or income?

maybe im wrong , just cant see anyone giving out 15k willy nilly without the basics

Fiddlestick

GEEGEE8 wrote: »

I have told them to make the first 4 or 5 payments on the loan, so at least if they did get made bankrupt then it wouldn't look like fraud..

If they take the loan out with no intention of paying it back then it IS fraud.

And what if they don't get a long term visa or residence permit and have to return to the UK after their two years?

GEEGEE8

The person in question is a nurse, so yes they have a job here. They can get a job out there within a day or two, and they have already been offered sponsorship to work at a hospital for 5 yrs. Apparently that is a 5yr VISA then, so I've been told.

I know it's fraud, I can't do anything but advise them on the possible consequences. Although we all know the reason for taking the loan, it would be harder to prove if they made those 4/5 payments.

I'm sure that they would be granted residency based on the job and that they have lived out there for a year already. Not sure if your credit check plays a part in that though?

The loan has been approved and just the forms to be sent back now, hence why I'm asking on here as I don't want the person to make a mistake.

onlypaddy

This would be a huge mistake.

As people have said, the lender could keep this going on credit reports for around 13 years if they time things right, and possibly longer if courts allow it. For an amount of £15k this could happen. Gone Away Information Network (GAIN) will also kibosh any applications in the future. In my eyes, all this information on a credit report would make this person un-lendable to for the rest of their life. I'm not sure what information is shared between countries, but with modern electronics and the internet it wouldn't take too much effort for someone in Australia to find out the information if they wanted to.

Also, this is fraud at its most basic level - and if the lender was able to prove that the loan was taken out while the person was actively planning on emigrating to Australia when taking out the loan, and not planning on making repayments then it's not inconcivable that criminal fraud charges could be brought. The UK and Australia have an extradition treaty in place.

All in all, running away to the other side of the world doesn't mean you won't be found.

Gordon_Hose

I think it's disgusting that people would even consider doing that, maybe it's just me...?

People doing stuff like this ruin it for the rest of us. You should kick your "friend" squarely in the genitals and tell them not to be so stupid.