Fraud by family...

Beccydogg1

I'm struggling to get hold of citizens advice so hoping someone here could advise me in the mean time...

Last month I had a default notice from a payday loan company requesting payment of 515.00 for an unpaid loan.

I did not take this loan out however, when checking my bank statements the transaction was processed into one of my accounts and was subsequently spent over time from the same account.

I do not use this particular account and do not carry the card. My only conclusion was that it was used by a member of my household. I gathered evidence to prove I was not the person to apply for the loan but I had no proof of who did.

The loan company opened a fraud investigation and are willing to close the matter by removing all interest accrued on the loan if I agree to pay the remaining balance of 100.00.

I am inclined to pay it as I am moving away in two weeks and will be unable to proceed very easily if the case remained open, however, I am in the mind set of 'why should I pay for something I did not take out?'

I have approached who it was I believed to have taken the money and they have denied it. It is family and I'm finding it difficult to consider going to the police...

Do I have a legal right to refuse to pay the balance? Or would it be in my best interest to just pay off the remaining balance and close the case?

Any advice would be most welcome at this point! Thank you.

gb12345

Beccydogg1 wrote: »

Do I have a legal right to refuse to pay the balance? Or would it be in my best interest to just pay off the remaining balance and close the case?

Not unless you can prove it was fraud - the fact the money went in to your account and was then spent from there makes it difficult to deny knowledge - the pay day loan company will assume it is an excuse to avoid repaying (they'll have heard it before when it is not true).

Your reluctance to report the fraud will also go against you.

McKneff

I think I would be inclined to pay up and move on.

Close any bank account that you don't use.

Have they agreed to take the default off your credit file I think you are in a good position to ask.

Tixy

How did the relative access your bank account and spend the money deposited in to your account?

Has this relative actually repaid all but the £100? and was this again through your bank account?

I would report them for fraud as you may find they have committed other fraud against you. Have you contacted your bank to inform them of the fraud on the account and asked them to close the account down/ stop the cards etc?

I'd also suggest checking your credit files to see if any other credit has been taken out in your name, and I'd consider applying for CIFAS registration to make it harder for anyone to take out further credit in your name.

I am inclined to pay it as I am moving away in two weeks and will be unable to proceed very easily if the case remained open, however, I am in the mind set of 'why should I pay for something I did not take out?'

In what way will you not be able to proceed with moving away? Do you mean because there will be a default on your credit file?

If a member of my family had committed fraud in my name I would report them to the police. If you decide that option isn't for you then I guess you would need to pay the debt.

I'd also clarify with the pdl company what paying £100 will result on your credit file. Will it mean there is no default entered, will there be a default that will be marked as settled? or will the entire entry be removed etc?

DCFC79

Id pay it but I have to ask how did said person withdraw the money ? Was it from an atm or in branch ? Do you keep the card in a safe place ? Who else knows its kept there ?

Beccydogg1

Thank you for your replies so far.

The family member had access to my account details as, a long time ago, they had wages deposited into my account.
As far as I was aware my card was stored safely and I did not realise it had been used. If it weren't for this I may never have realised. The account was only ever opened to deposit a chq and once it had cleared I had no reason to use it.

I have checked my credit report and there seems to be no further credit listed that I did not apply for, however loans had been enquired about using my details in the past (this was brought to my attention a few months ago from credit card/loan companies).

The reason I am concerned about pursuing this is because I am about to join the military and I will not be available to correspond with the company in due time and I fear I will miss deadlines and subsequently penalise myself even further.

I suppose it doesn't look good from the outside if I have no real proof that this person has been using my card unless I go to the police... It's a very tough decision to make...

The loan company have stated that they will remove any record of this loan from my credit file if I pay the remaining balance. Perhaps the best course of action is to do just that...

Money_maker

Beccydogg1 wrote: »

they will remove any record of this loan from my credit file if I pay the remaining balance. Perhaps the best course of action is to do just that...

Can someone comment on this? Sounds a little odd.

Beccydogg1

DCFC79 wrote: »

Id pay it but I have to ask how did said person withdraw the money ? Was it from an atm or in branch ? Do you keep the card in a safe place ? Who else knows its kept there ?

The thing is, and I know it's no excuse... Your 'safe place' is just that to people outside the home whom you do not trust.

I can't say for sure that my family didn't know where I kept my card. I also can't say for sure that they didn't know my PIN... Like I said, it's no excuse, but most families/couples have shared their PIN with someone they trusted at some point... In that respect, although they did use my card and account without my knowledge or permission, I don't really have a leg to stand on!

Suppose I answered my own question there then...

Beccydogg1

Money_maker wrote: »

Can someone comment on this? Sounds a little odd.

From my letter:

"Following our investigation, [loan company] have removed the interest accrued on the loan and additionally the payments already received, leaving the remaining balance of £100.00.
Once this payment has been received, [loan company] will be able to remove any record of this loan from your credit file."

DCFC79

Beccydogg1 wrote: »

Like I said, it's no excuse, but most families/couples have shared their PIN with someone they trusted at some point...

Yes thats true although your not meant to tell anyone else your PIN whoever they are.

Tixy

Given that they will remove the whole entry from your record then that may be best in your situation.

Can you threaten family member to own up and pay up or that you will take it to the police?

If you are going to be away from home for an extended period then I'd think very carefully about ensuring this cannot happen again (close any unused accounts / cut up old cards / change PINs etc).