Loan taken out using home address

sorethumbs

Our student daughter has stupidly been using some of the 'payday' loan people whilst at Uni and has used our home address as 'her' address.

As she has no job (thanks for checking that 'QQ') we now have her arrears letters and default notices.

As we are concerned about our credit rating and debt collectors. Where would we stand if we don't pay it for her? Is the debt hers or will it be left to us to sort out as she has used our home address?

happycamel_2

It's her debt and her credit rating that will be shot. Your credit rating won't be affected and if a debt collector turns up just tell them she doesn't live there, even if it gets as far as a bailiff (v unlikely) there will be no consequences for you.

terryw

Credit ratings are upon the person not the address. Debt collectors may call to see her - merely give her present address after pointing out that she does not live at your address.

sorethumbs

Thanks for the matching answers people. We thought as much or hoped as much. We are unfortunately guarantors on her student accommodation which is also in arrears so will have to shell out on that - payday loans were something we were hoping we wouldn't have to also pay.

Tixy

Have you spoken to her about the debts? - would it be worth pointing her in the direction of this forum for advice on how she can try to get herself out of this mess?

Perhaps she can look for some work over the summer months?

Perhaps explain to her that those default notices will now affect her for the next 6 years, and could limit some of her options when she leaves Uni and enters the 'real world'.

sorethumbs

Unfortunately her world has now been consumed by living in the 'Big City' and she buries her head in the sand and we only find out when we receive these letters. She is studying to become a Barrister, having a bad credit rating is something I'm sure would affect this career.

She has been jobless since Christmas but is looking for work however we think 'paying debts' will be low on her priorities when any money starts coming in.

Until then we are left with being guarantors

DCFC79

Sounds like you need to have a sit down with her and explain the consequences of her actions and explain that paying the debts needs to further up the list.

sharp910sh

sorethumbs wrote: »

Unfortunately her world has now been consumed by living in the 'Big City' and she buries her head in the sand and we only find out when we receive these letters. She is studying to become a Barrister, having a bad credit rating is something I'm sure would affect this career.

She has been jobless since Christmas but is looking for work however we think 'paying debts' will be low on her priorities when any money starts coming in.

Until then we are left with being guarantors

You need to have a serious chat with her. Tell her straight. Or you will be footing the bill.

Lifeforms

You need to damage control yourself regarding being guarantor on her accommodation. As much as she is your daughter she is in the grown up world, and should be able to budget accordingly. It's harsh, but you should be taking the line of getting her to move somewhere cheaper, much cheaper if you wish to still be a guarantor for her, so you are left to pay less. This will only bring anguish on your family eventually, and just breeds that mummy and daddy will pay her debts forever.

sorethumbs

Wise words but not that easy, its like talking to a child when we cover these issues just sulks and says 'I know'. We have stressed the importance of finding a job for months now it seems.

We are probably at the point now of trying to remove my partners name from being guarantor although we're not sure if it can be done

[Deleted User]

sorethumbs wrote: »

We are probably at the point now of trying to remove my partners name from being guarantor although we're not sure if it can be done

Highly unlikely, unfortunately. They wanted guarantors as they suspected she wouldn't pay, so will want to keep as many options for getting their money back as possible.