Loan application fee - Myloans/Amigo loans

MunniMuncha

My ds aged 19 has been sent a loan application by amigo loans in the sum of £3000 over 12 months at an APR of 81%, to be guaranteed by a householder (which namely would be us). He only wanted to get about £20 to get him through til payday and it was only when it was too late that he realised the minimum amount for the loan was £3k. He knew he couldn't afford to pay this back and there was no way we would guarantee it anyway. Phoned up Amgio Loans and told them to cancel it.

However, in the meantime he has had a telephone call from his Bank's fraud department as in one day a company tried FIVE times to get an amount of £69.99 from his account in respect of 'setting up the loan'.

The Bank stopped the card and luckily has not been paid as he did not have money in his bank to pay that amount.

My question is does he need to do anymore now like write to the company or does he just ignore it. The Bank has issued a new card with a new number so they cannot get any money from his bank, but just wondered what the legal position is.

Many thanks for any help and assistance you are able to give

Apples2

Your son has been randomly dishing out his bank details all over the Internet.

You need to find out what he has been doing, which sites he went on etc. Cancelling and getting a new card doesn't always help. The bank can tell you specifically who was trying to withdraw the money.

The payment was authorised the second he pressed the "I'm an idiot" button so it is still possible it can be withdrawn.

Sounds like his bank are (so far) being very good.

poppasmurf_bewdley

Are there any companies on the internet that will lend £20 for a few days? I don't think so. I think it's about time you sat your son down and told him a few financial facts of life.

Start with not giving out debit card details over the internet to anyone who asks. Remind him, like I had to remind my own son, that anyone who asks for card details does so for only one thing - to draw money out of your account.

MunniMuncha

poppasmurf_bewdley wrote: »

Are there any companies on the internet that will lend £20 for a few days? I don't think so. I think it's about time you sat your son down and told him a few financial facts of life.

Start with not giving out debit card details over the internet to anyone who asks. Remind him, like I had to remind my own son, that anyone who asks for card details does so for only one thing - to draw money out of your account.

We have sat our son down many times and talked about finances, but unless you have a teenager you obviously don't know that they think they know it all. We are very good with money, but were not so at the age of 19, and are always talking to him about budgeting, only spending what he earns and not borrowing any money.

Yes you can get as little as £20 from places like Wonga and the likes - and that is what he thought he was applying for. Once he saw the loan minimum was £3000 he knew he couldn't afford it and didn't want that amount, but by then the damage had been done.

Apples2 wrote: »

Your son has been randomly dishing out his bank details all over the Internet.

You need to find out what he has been doing, which sites he went on etc. Cancelling and getting a new card doesn't always help. The bank can tell you specifically who was trying to withdraw the money.

The payment was authorised the second he pressed the "I'm an idiot" button so it is still possible it can be withdrawn.

Sounds like his bank are (so far) being very good.

He cannot remember the name of the sites, but we know that it was applied for through My Loans and passed onto Amigo. He knows he has been foolish and hopefully he will have learnt his lesson. We have spelt out the implications to him and now he knows what they are - would closing the account and opening up a new one stop this once and for all? Also how can they take out money from a card number that has been cancelled? Surely that is why the Bank stops cards when they are being used fraudulently, or in the case of my son, so monies cannot be withdrawn from the account?

Beckyy

The card has changed, but the account he authorised it from hasn't - same account number and sort code etc. just a different card.

Get him to check his emails/junk emails or history to try and find the website. Maybe it will be a harsh lesson learned.

R_P_W

Im no expert but the fee someone is trying to take from his account - he has probably agreed to someones T&Cs on a website somewhere. I think if you write to who ever it is within a certain timescale it can be refunded (but I think it is somethign like 7 days)?

You may have to pay the fee and just move on

worried48

If he really thought he was borrowing from Wonga, when actually he was filling in an application for a loan broker, I would say he has an urgent need for a course in functional English apart from anything else.

Kayalana99

I'd cancel the account asap - these people stop at nothing to get thier money back. Also I would try and sort it out & not just ignore it but in mean time you don't want them to have any account details - even with a new card.


And don't worry about the 'you should of taught him better' my Dad taught me everything thier is to know about finance but my sister just didn't have any of it - never took to it etc wouldn't listen....Had to bail her out of £1000 debt last year.

You can try your hardest but all children are never the same!! :-)

Apples2

You can get a full refund within 14 days. After 14 days you can get a refund minus £5 (which is all their governing bodies consider their input is worth (too high if you ask me))

Knowing who took the money is kinda critical though!!!

MunniMuncha

Many thanks for your replies - we now know who took the money and have sent a letter requesting the refund.

He has realised his mistake, and those of you who have felt it was a good idea to misjudge/criticise my son, can you please have some thought for those youngsters who are starting out in the big wide world and maybe not as literite/financially aware as obviously you were at that age have some compassion!

Dabooka

MunniMuncha wrote: »

Many thanks for your replies - we now know who took the money and have sent a letter requesting the refund.

He has realised his mistake, and those of you who have felt it was a good idea to misjudge/criticise my son, can you please have some thought for those youngsters who are starting out in the big wide world and maybe not as literite/financially aware as obviously you were at that age have some compassion!

Criticism is sometimes due you know. And don't bring compassion into it either, i fail to see how that has a bearing on the issue at hand.

Anyway, bullet dodged and lesson learned so all good, eh?