Friends salary into my account?

ldubois

Hi There,

My friend is in a bit of trouble, has asked me a favour, and I wanted to ask some advice. As I understand it, he is in credit card debt to about £5000 - he has a credit card with the same bank he has a current account with. He has taken a variety of advice and discussed it a lot with his bank, but is looking at sequestration. He is concerned that if his next wage gets paid into his account, his bank may be able to take it all towards his credit card debt, and has asked if he could have his salary paid into my account for one month while he opens a basic account with another bank.

I am okay with this as I have an account I don't use, so it would be fine. I'm happy to allow it for this month (he needs to let his employer know the new details by the 14th March, hence the rush), but make it clear he can't do it the next. If I do say it's okay, will I be liable in any way, or in any dodgy ground legally? I'm guessing it's not fraudulent or anything, but I am concerned about credit rating, for example, or anything coming back on me.

I should say I do trust him, he says he's taken advice on it all and has spoken to debt advice places. I am also comfortable with telling him it can be for one month only, but want to be sure there's not any long term issues that could arise from a small bit of assistance - we're looking at moving house in the next couple of years, for example, and would be very distressed if my credit rating were to be affected.

For the sake of clarity, the account I would let him use has no other money paid into or taken out of it, and has a small overdraft. He would not have any access to it anyway, the idea being that I'll meet him after pay day and give him some cash.

Any advice that could be offered would be great.

Many thanks,
Lewis

GingerFurball_2

ldubois wrote: »

Hi There,

My friend is in a bit of trouble, has asked me a favour, and I wanted to ask some advice. As I understand it, he is in credit card debt to about £5000 - he has a credit card with the same bank he has a current account with. He has taken a variety of advice and discussed it a lot with his bank, but is looking at sequestration. He is concerned that if his next wage gets paid into his account, his bank may be able to take it all towards his credit card debt, and has asked if he could have his salary paid into my account for one month while he opens a basic account with another bank.

I am okay with this as I have an account I don't use, so it would be fine. I'm happy to allow it for this month (he needs to let his employer know the new details by the 14th March, hence the rush), but make it clear he can't do it the next. If I do say it's okay, will I be liable in any way, or in any dodgy ground legally? I'm guessing it's not fraudulent or anything, but I am concerned about credit rating, for example, or anything coming back on me.

I should say I do trust him, he says he's taken advice on it all and has spoken to debt advice places. I am also comfortable with telling him it can be for one month only, but want to be sure there's not any long term issues that could arise from a small bit of assistance - we're looking at moving house in the next couple of years, for example, and would be very distressed if my credit rating were to be affected.

For the sake of clarity, the account I would let him use has no other money paid into or taken out of it, and has a small overdraft. He would not have any access to it anyway, the idea being that I'll meet him after pay day and give him some cash.

Any advice that could be offered would be great.

Many thanks,
Lewis

I wouldn't forsee any issue with regards to fraud or anything like that. Just provide your mate with cash and write him a cheque/transfer him the money once he gets a bank account elsewhere.

thenudeone

Strictly speaking you would be breaking the bank's rules designed to prevent money laundering, although it's unlikely to come to light.

innovate

No problem if you trust your mate, and if your mate won't let you down.

It all depends on your relationship , and the nature of the transactions.

agrinnall

Much of the risk is actually on your friend,as once the money is in your account it is your money and if you decided not to pay it to him he'd struggle to make a case to get hold of it. I'm sure you wouldn't do that, just pointing out that the risks aren't just for you.

iAMaLONDONER

thenudeone wrote: »

Strictly speaking you would be breaking the bank's rules designed to prevent money laundering, although it's unlikely to come to light.

How would he do that? There's nothing wrong as far I can see- providing the OP's friend is earning an honest wage!

CLAPTON

thenudeone wrote: »

Strictly speaking you would be breaking the bank's rules designed to prevent money laundering, although it's unlikely to come to light.

why is that?

teffers

It's worth noting that Lloyds CASH accounts (basic bank account) can be set up same day (in branch) and account details are given there and then.

ldubois

Thanks all, good to see that no-one's immediately replied saying 'my god don't do it!' Lloyds was a good tip, alas we don't seem to have a Lloyds in Edinburgh.

It's just a bit of a pain for him as I think the disagreement with his bank has come to a head just this week, and payroll details need to be changed by the 14th.

I think I'll say yes, but say I'm only comfortable doing it for one month.

Out of curiousity, for the people saying I'd be breaking the banks rules, what would the potential comeback on that be? That my account would be closed?

Thanks again though, advice much appreciated!

Kayalana99

ldubois wrote: »

Thanks all, good to see that no-one's immediately replied saying 'my god don't do it!' Lloyds was a good tip, alas we don't seem to have a Lloyds in Edinburgh.

It's just a bit of a pain for him as I think the disagreement with his bank has come to a head just this week, and payroll details need to be changed by the 14th.

I think I'll say yes, but say I'm only comfortable doing it for one month.

Out of curiousity, for the people saying I'd be breaking the banks rules, what would the potential comeback on that be? That my account would be closed?

Thanks again though, advice much appreciated!

No it's fine, no come back unless you gave him your card / bank details.

System

There are no Lloyds in Scotland; BOS or TSB offer the same account /service.

RBS, Clydesdale, Barclays and Nationwide will all give out account details the same day too if that helps.

IMO It's unrealistic for a bank to notice 1 extra monthly salary credit.