A little white lie?

erasmus_2

Hi folks,

I have been looking for a loan to consolidate my unsecured personal debt. When I applied for a loan they dismissed my application because I told them I wanted to consolidate my overdraft / credit card debts.

However, when I applied 3 months later for the same amount, I said it was for home improvements (it isn't). The loan has been agreed even though I'm using the loan for consolidating my debts.

Now my wife is worried that they are going to recall the loan back early as they will be able to see that I have paid off my credit cards & overdraft with it.

[Deleted User]

whos to say thats what you used the loan for?for all they know you could have won £10,000 on the lottery,whilst i would never advise lying in this way now you have i wouldnt lose any sleep over it,1000`s of other have told the same lie,and worse

ReadingTim

I would suggest that as long as you make the payments as agreed on the new loan, the bank would have no reason to recall the loan.

However, please make sure that you use the new debt to repay old debt, rather than add to it!

opinions4u

They won't call the loan in. Keep paying it and nothing will happen.

What you've done is to commit an act of fraud though. Obtaining money by deception.

_Andy_

Fraud is bad, mmkay?

poppasmurf_bewdley

opinions4u wrote: »

What you've done is to commit an act of fraud though. Obtaining money by deception.

Are you sure?

If I borrowed £5k from my bank to buy a car, and then bought a caravan instead, would that be fraud?

If I borrowed £5k to buy a new kitchen, and then just decided to put the money into my bank account and not spend it at all, would that be fraud?

_Andy_

The OP clearly made a fraudulent application - 1) He said it was for HI knowing damn well it was for DC and 2) Knew damn well that they'd declined him based on loan purpose prior.

As has been said, nothing's going to come of it but it's still fraud.

tell_it_how_it_is

Not that he'll need to, but if he had to he could just say that his wife changed her mind as to what it'd be used for ... that's what women do all the time after all (tin hat time lol)

ReadingTim

poppasmurf_bewdley wrote: »

Are you sure?

If I borrowed £5k from my bank to buy a car, and then bought a caravan instead, would that be fraud?

If I borrowed £5k to buy a new kitchen, and then just decided to put the money into my bank account and not spend it at all, would that be fraud?

Afraid so - seems to fall under s.2 of the Fraud Act 2006 - "Fraud by false representation" - where a person makes "any representation as to fact or law...express or implied" which they know to be untrue or misleading.

Furthermore, echoing the law will probably be some statement in the loan T&Cs along these lines: "[if] we find out that any fact or information which you provided to us, or representation made to us by you or on your behalf, was materially incorrect or misleading, we will have the right to demand immediate payment of the unpaid balance of the total amount payable"

As stated before, nothing's likely to come of it, so the OP should just concentrate on making the repayments, and try and be a little more honest in future...

skintandscared_2

I'd imagine the only possible repercussion COULD be if the loan was with the same bank as the mortgage, and the "home improvements" could be expected to increase the property value, but house prices fluctuate all the time and I don't imagine for one second that the mortgage lender would care in the least, unless the OP was about to sell or default on the mortgage.