Sister's husband has used her name for business mobile contract

Kraftwerk

Hi

Not too sure if this is the correct part of the forum to post this.
Please move if it isn't. Thanks

Just wondering if this is allowed to happen?
My sister has just found out that her husband was refused credit to get a business mobile phone contract and used her name instead, for two mobiles.
The payments are coming out of the business account.

Can she be in trouble in any way?
Can she cancel the contract?

Surely my sister would have had to sign the contract?

As you may have guessed I do not understand how these contracts work and if it's different for businesses or using family member names etc.

Thanks

Yorkie1

If he has made an application for credit (i.e. mobile phone accounts) in her name, he has committed the criminal offence of fraud.

If the bills are not paid, she will be the one who is pursued for the non-payment and risks her credit record. She may also be investigated for joint involvement in the fraud (not saying she was involved, but that there might be an investigation if things go wrong and the company looks to see what happened).

As for cancelling the contract, that will depend on the T&Cs of the contract - there may be monthly standing charges for the duration of the contract, even if calls aren't made on it.

What would her OH do if she did cancel the contracts - presumably it might jeopardise the business if they couldn't have the contracts? He really has put her in an impossible position.

Kraftwerk

Thanks for the reply

Just found out a bit more from my sister:

He actually got the contract online, but used my sister's name for the credit check, as his credit check was not good.

She said he came home from work and said:
'By the way I used your name to be able to get credit for two mobile phones.....'

My sister did not think much of it as he deals with all the bills, and she has no involvement in the business.

The contract is for 18 months which has only started in the last few months.

The package arrived in the post with my sister's name on the package.

Does this still mean he has committed fraud?

mountainofdebt

But if the phones are on a business tariff then shouldn't the phone contract be in the name of the Company especially if the costs are to come out of the company business account?

earthstorm

Kraftwerk wrote: »

Does this still mean he has committed fraud?

Yes. He used another persons name to get credit that he knew he would not get under his own name.

whey is he a bad credit risk ( non payment on credit agreements) which means your sister is 100% liable for the contract.

I suggest that you sister contact the provider or credit company and explain what he has done and have the contract made null and void.

globetraveller

and it would make you wonder what else is in her name.

earthstorm

mountainofdebt wrote: »

But if the phones are on a business tariff then shouldn't the phone contract be in the name of the Company especially if the costs are to come out of the company business account?

This is only required if the company is a limited company/partnership. If they are a sole trader then it can be in your name as you are the business

Kraftwerk

earthstorm wrote: »

This is only required if the company is a limited company/partnership. If they are a sole trader then it can be in your name as you are the business

We thought that it was his business, but found out from his son that it looks like my sister's husband's father is the owner, or it's in his father's name (I don't really understand what is going on there!).

Yorkie1

earthstorm wrote: »

I suggest that you sister contact the provider or credit company and explain what he has done and have the contract made null and void.

The trouble with doing this (and I don't necessarily disagree with the suggestion) is that it brings risks of its own, hence my reference earlier to an almost impossible position.

The company may refer the fraud to the police.

The company may - additionally or instead - place a fraud marker against his name or, even worse, against her name. This would make it almost impossible to get credit in the future. This would extend to insurance or perhaps bank accounts.

I would agree with cancelling - or just not using - the two current phones, but would fear the consequences of actually admitting the truth to the company.

The further knock-on impact is that the failed credit check on his credit record will be recorded, making it harder for him to get credit from another firm in the near future. The speed at which his credit record may be repaired will depend on the details of the problems with his credit record.

I don't understand the details about who legally owns the company, but I would suggest letting them know about this as they may possibly face a risk if the company is investigated at any point, or markers put against all names associated with the company (is it in financial difficulties?).

Kraftwerk

I should add that she has left him recently (and no she is not trying to get back at him, she is not that sort of person), but I am trying to help her out and make sure she is not going to be hurt any more.

My sister is seeing a lawyer tomorrow and will be mentioning all of this.

What is the best way to go about this then, concerning the phone contract?

Tiddlywinks

Kraftwerk wrote: »

My sister is seeing a lawyer tomorrow and will be mentioning all of this.

What is the best way to go about this then, concerning the phone contract?

Rather than canvas opinion on here based on limited information -where any responses will be guesswork from most of us - your sister should take the professional advice provided tomorrow.