FA helped my parents get a loan using false details!

rezarf

Hi,
My father passed away recently and my brothers and I have been helping my mother sort out the finances.

While doing this we discovered that they had taken out a loan to consolidate some debt.

Upon looking a bit further, and my mother telling me about when they applied for the loan, a few things are dodgy to say the least.

The main thing is that at the time my mum was not working and the financial advisor that helped them secure the loan, told my mother that she would have to pretend she was working to be accepted for the loan. He gave false details about her working as florist for a couple of years and that not to worry as he had the address and details for it and that it would all check out.

Where does my mother stand with this as it all sounds very illegal, obviously she doesn’t want to get in trouble.

She is currently waiting on the life insurance paying out as has planned to pay the loan off, if the redemption amount is within reason as the rates for the loan are very bad. Then use the remaining amount to make a dent in the remaining mortgage balance.

All advice welcome.
Rezarf.

chanz4

if they signed it, just as ilegal I wold keep quiet

rezarf

chanz4 wrote: »

if they signed it, just as ilegal I wold keep quiet

....

They must have signed it as they got the loan, I just thought that the FA must have knew they wouldn't get the loan unless they gave false info. He gets his commission and my parents get a rubbish loan.

Rezarf

[Deleted User]

The problem is that she committed fraud to get the loan, however encouraged she may have been by the adviser. Unfortunately it seems her desire to get the loan was greater than her desire to ensure the application was honest. She probably doesn't want to go through the trauma that would bring if it comes to light.

debtcutter

Agree with the last couple of comments.

Although she may have been given incredibly poor and illegal advice from a professional FA, she would have had to sign an agreement that stated something along the lines of "I certify that everything I've stated is true to my knowledge." Trying to take action against the FA will almost definitely end up causing her more harm than good.

What exactly are you thinking will happen? I don't think there's any chance of getting the loan written off because of it. After all, it's not the loan company's fault and the FA would almost definitely deny it and claim he was mislead.

Good luck with getting a decent settlement figure. Worth checking back here once you've got it to make sure it all adds up and they're not charging you a penalty that's higher than allowed!

opinions4u

Your parents appear to have been willing parties to a fraud.

Do you want to highlight it?

rezarf

Hi,

Thanks all for replying.

As i expected the answer would be. Definitely don't want my Mother to have to deal with any more stuff.

Once the redemption figure comes in I will post hear again to see if it sounds about right.

I just can't believe that an FA would advise this, worst thing is that I have been informed that he was due to come out a few months ago to access the finances and help prepare a will, but never turned up and when my Mother called them he couldn't make it as he had a dentist appointment.

Will be in touch.

Rezarf

somethingcorporate

You need to stop pushing all the blame onto the FA and start apportioning it correctly.

Your parents are as much party to this fraud as the FA was so they share a fair portion of the responsibility. Thinking otherwise is likely a misrepresentation of the truth.

Sorry if that is harsh but your parents are likely guilty of fraud.

andy.m_2

While you may considert he loan to be rubbish, did it help them at all?
They obviously thought it would.

Let sleeping dogs lie with this one

paddyrg

It may be worth tipping a quiet nod to the FSA with the name of the advisor.

chesky

paddyrg wrote: »

It may be worth tipping a quiet nod to the FSA with the name of the advisor.

I'd think very carefully before doing that - goodness knows what can of worms you might open, including the actions of your parents.