Loan taken out by family member

andyuk101_2

Not the usual type of post around loans to/from family members

Around 3 years ago my step father took out a loan on my behal, he could secure a loan at 9.9% (married, home owner, no debt etc etc) whereas i was offered 19.9% (some debt from uni, rented, moved home recently etc etc)

The loan was for a car purchase and was for £8k - on the application form my step father put car purchase and bought a car for me that i had already picked out - registered in my name

For the last 3 years ive transferred an amount equivalent to the loan payments to his account and then he has paid the loan by DD

Recently ive started making additional payments, directly to the loan account (it has an acc no and SC and accepts payments in) however my step father has received a number of calls from the fraud prevention team at the bank wanting to speak to him

I don't 'think' we've done anything wrong here but i am concerned as to why the fraud team want to get in touch

Emmzi

if it is fixed loan you won't be able to make part overpayments, just repay the whole lot at once. They may be checking for money laundering as it's an irregularity on this kind of account.

planning303

Wasn't the law changed recently so that banks had to accept overpayments and recalculate the interest accordingly?

Emmzi

IF they take overpayments they have to reduce the interest. but they don't have to accept overpayments.

andyuk101_2

Ah starts to make sense now - i was under the impression that you could make partial overpayments to all loans taken out in the last few years and that interest would be recalculated accordingly

Think ill just get SF to request a settlement amount and see if the partial overpayments have been accepted and then settle in full

Thanks

AMILLIONDOLLARS

I think your Step Father is very lucky to have you as his Son, time and time again we see when this type of lending doesn't work out, well done for wanting to clear this debt more quickly.:T You set a shining example to others:beer:

AMD

redpete

andyuk101 wrote: »

I don't 'think' we've done anything wrong here but i am concerned as to why the fraud team want to get in touch

Quickest and best way to find out what they are concerned about is for your step father to call them and ask what they want. If asked where the money is coming from he can just say that another family member ishelping to pay the loan off.

It would of course have been better to check what the Ts&Cs for that loan are regarding overpayments before making any.

rdwarr

He should call them now! What if the calls are about something totally unrelated?

andyuk101_2

rdwarr wrote: »

He should call them now! What if the calls are about something totally unrelated?

I think its unlikely, my SF only use this account for the loan payments and cut up the debit card a while ago, no other products or services from that bank

SF said he would ring tomorrow and get a settlement figure and ill transfer that money to him so he can make the overpayment, hopefully no issues with the overpayments i've already made

Thanks all

andyuk101_2

AMILLIONDOLLARS wrote: »

I think your Step Father is very lucky to have you as his Son, time and time again we see when this type of lending doesn't work out, well done for wanting to clear this debt more quickly.:T You set a shining example to others:beer:

AMD

Thanks - My SF doesnt know it yet but it was always my intention to make a gift of 3 months worth of loan payments as a thank you, he wouldn't accept a straight cash gift but this felt like a reasonable way of showing my gratitude

jonesMUFCforever

I think the problem lies with a 3rd party paying into the loan.
The simplest thing to do is phone the bank and explain.