no income but I got a credit card!

Mrs_Ryan

I used to work for capital one. I have seen them give stupid credit limits to people with no income. They take into account any household income therefore I bet he's given them the household income rather than his own.

reclusive46

Mrs_Ryan wrote: »

I used to work for capital one. I have seen them give stupid credit limits to people with no income. They take into account any household income therefore I bet he's given them the household income rather than his own.

Indeed. American Express do the same thing.

YorkshireBoy

reclusive46 wrote: »

Indeed. American Express do the same thing.

If you mean they take "household income", they qualify this by saying, on the application form...

"I have an Annual Household Income of £20,000 (ie. your personal income plus partner's income.)"

The income of parents, siblings, etc is not what they're asking for. Indeed, passing off this as "household income" would be 'deception to gain a pecuniary advantage', ie fraud.

bankhater_1965

molly22 wrote: »

my son (19) has recently applied for and received a Capital One credit card with a £1200 limit. (all unbeknown to me)
he is a student at college and has no job. = No income.
he then bought an old classic car with his credit card.
(he already has a car, which i bought and fund, so he can get to college)
the new purchase has no MOT, and although it drove here it is now dead.
My main worry is, he has no way of paying anything off this credit card.
and another card arrived today, (assume this is for the upgrade he will need for insurance, at least an extra £1000 on top of the £1300 ive already paid) again from capital one, with a credit limit of £500. (i have cut it up)
i have no idea how he is obtaining these cards, although they do have a high interest rate of 25.5%, so obviously not that difficult.
I'm thinking when he defaults as he will do, my address will be blacklisted, i've always had an excellent credit rating, never spending what i couldn't afford.
obviously i haven't passed my experiences on very well!

any ideas what i can do?

i thought lenders had a obligation to sensible lending with new regulations ?? perhaps they still rule the roost then!!, if so this proves the desperation of financail organisations to upbeat there profits on abig scale , soley to keep funding there bonuses and a clear example of doing so at someone elses misery

blitzboy

molly22 wrote: »

i totally agree, but as his mother that is
any ideas what i can do to help him see that what he has done is wrong?
he will be helped financially so that isnt really the issue here, its the moral side of things thats a problem.

Find an article somewhere about someone committing credit card fraud and the punishment they received and print it off for him. I'm sure it wont be too hard to find one on google.

There is no way he would have got this card without committing fraud

callum9999

bankhater_1965 wrote: »

i thought lenders had a obligation to sensible lending with new regulations ?? perhaps they still rule the roost then!!, if so this proves the desperation of financail organisations to upbeat there profits on abig scale , soley to keep funding there bonuses and a clear example of doing so at someone elses misery

It proves nothing of the sort...

PrincessPlaty

I got one of those pre approved letters through from Vanquis the other day offering me a credit card.

What it actually says is

Your ANNUAL household income (before tax)
This is the total yearly income including benefits and grants for all members in you household)

Before we start jumping to conclusions about the OP's son, there is a chance that if the Capital One form state the same or similar then he has NOT committed fraud in order to obtain the credit.

YorkshireBoy

PrincessPlaty wrote: »

Before we start jumping to conclusions about the OP's son, there is a chance that if the Capital One form state the same or similar then he has NOT committed fraud in order to obtain the credit.

On the other hand, he'd still have to enter his occupation as "student" and know what his parents' total income was...and none of my kids could answer that question remotely accurately! Furthermore, it doesn't sound like he asked his mum.

But for the moment we'll give him the benefit of the doubt.

[Deleted User]

molly22 wrote: »

i totally agree, but as his mother that is what i do.
i can makes excuses for him whatever he does.:)
but i do know this is wrong.
any ideas what i can do to help him see that what he has done is wrong?
he will be helped financially so that isnt really the issue here, its the moral side of things thats a problem.

his take is, he is at college and will get a good job so whats a thousand pounds?
so scary, im lost as to what to say to him.

personally i`d give him 2 choices,give up college and get a full time job so he can re-pay his debts,if he wont then kick him out !
tough love i know

izools

I think that would only teach him not to trust his mother.

However refusing to help and allowing the debt to default and result in debt collection activity would certainly help as it would be a mess he has to find his way out of and if that means giving up his EMA to pay the debt collection agency, so be it. Lesson learned.

Plus once the account defaults (or even falls in to arrears) he won't be able to obtain credit for some time to come - it is better to learn these lessons as early as possible!