How to prevent Son keep applying to payday lenders

Marksfish

My 18 year old Son was on an apprenticeship (£2.68 per hour slave driving really). I have since found out he had a payday loan with Wonga recently. We made him pay it off straight away. We then found out he had one with Quickquid which we think he has paid off. He has received letters from a company called Peachy (stooping so low as to have to snoop on his post now) and putting his sim in my spare phone (his is broken and he wanted to borrow one) has shown several applications to other payday lenders. He currently now has no job and will not talk to us about the loan situation.

Do these companies not credit check? Can they not see the amount of applications he is making, his credit score isn't great as he also defaulted on his Barclaycard.

I just can't get into his head how he is affecting his future and how much grief we are also going to get. He also gave up his job last week, so has no way of paying these loans back now. Is there something I can have added to the house records (like a notice of correction) so that if a lender does check him, it will automatically have to be referred? Problem is, I don't really want it affecting me as we are due to re- mortgage later this year.

Other than throwing him out of the house, there is not much else I can do, but would be grateful to hear any constructive suggestions that don't tell me what a bad parent I am..

Thanks

Sinhanada

Hi

Not really sure how you would go about this. Certainly do not use your card details to pay these loans off for him though whatever you do. I can certainly sympathize with you and hope you do manage to correct this.

Unfortunately in my experience they do not do sufficient checks when offering out loans and go off the details that people put into the websites.

fevlo

His loans and credit history have no bearing on your credit file unless you are financially associated to him in some way such as a joing loan or bank account.

Talking from experance here having had multiple payday loans that I couldnt pay off, your son might just have to learn the hard way.
Perhaps show him this thread and tell him to take advice from someone who has been there, done it, baught the payday loan t-shirt, paid thousands back in intrest (and I mean Thousands !) and has a credit report litterd with payday loans and defaults.

It ends up this way in so many cases and just the presence of payday loans on his credit file is enough to prevent him from getting mainstream credit for the next 6 years.

Ive just got to say one thing....Opening his post and looking at his phone records without him knowing is not cool, its happened to me and the outcome will never be good.

lynz68

Your sons credit rating will not affect you. Credit rating is personal not attached to the household.

I am not aware of anything you can do to stop him applying for payday loans but eventually even they will say no.

Your son is young and probably does not have a clue what to do and being a parent you are probably the last person he wants to speak to. I'm guessing he is embarrassed about the whole situation.

Believe me I know it's hard I have a 22yr old and 17 yr old myself but try and remain calm and offer to try and help him sort out, but don't pay anything for him or will not learn. Maybe try and find out how much he owes overall and point him in the direction of one of the free debt charities. Have a look at the debtfreewannabe board.

DCFC79

It wont go by address either if thats what you meant by Is there something I can have added to the house records. There's nothing you can do as he is 18 and classed as an adult, maybe he needs to learn the hard way.

What has he been spending the money on ?
Why has he given up his job ? ok it was £2.68 per hour butan apprentice and was learning.

Going through the post wont help.

duchy

He's eighteen
Although you obviously still think he is a child-he isn't........ Would you snoop through any other adult's private business ?
You can advise him, you can ask him to leave if you don't approve of how he is conducting his life ...both are legal...... opening his post however is not.

It's not a case of bad parenting -it's a case of telling an adult in your home what is and isn't acceptable -and following through.
As for the snooping -that's how huge family rifts can start -if he were to say to friends and family that living with you was intolerable because of your constant snooping in his finances.....you wouldn't really have a defence. These things have a habit of escalating- be careful as even if he's currently driving you nuts I'm sure that isn't what you want.

shortcrust

First off, credit reports are for individuals, not addresses, so your report won't be trashed by his behaviour. Apply for all the £2 credit reports to check so you can stop worrying about your re-mortgage.

Just my take, but I really think that people need to learn these things the hard way. Put a roof over his head and feed him if he's hungry, but let him sort the mess out. Nothing terrible will happen to him and nothing terrible will happen to you apart from lots of letters and phone calls. If he doesn't repay the debts he'll find that he's made life very difficult for himself for a few years and will hopefully realise that there are serious consequences to reckless borrowing. He's not ruined his life, but he'll get it into his head when he can't do some of the things his mates can do. In six years or so his slate will be clean again, and better that that happens at 24 than 34. That's the risk if you do all the work for him now.

InsideInsurance

Hes an adult, I would somewhat support throwing him out but then I think kids live at home far too long these days - I am shocked at the fact a number of my school friends (mid 30s) have never left their parents house.

That rant aside, he is adult whether you like it or not and so there is nothing you can do to stop him. Trying to treat him like a kid will make him more likely to act like a kid and try to go against you.

Let him take out the loans, let him have debt collectors chasing him etc. As others have said, it wont impact your credit rating, only his. Realistically on £2.68 an hour he isnt going to be getting a mortgage any time soon anyway and much better he learn how to be responsible whilst it doesnt matter than when he's got a wife or kid that'll also be impacted by it.

Voyager2002

I must say, giving up his job is a good deal more serious than the Payday loans.

The best practical help you can give him is to tell him how to avoid bank charges. The lenders will make repeated attempts to take payment from his bank account, and if there is no money in it then the bank will charge for this. So he needs to make arrangements with his bank to prevent this problem.

As for the payday lenders, they will pester him for while; they have already ruined his credit record for the next six years; they will threaten to take him to court but are unlikely to do so since he has no money with which to pay them. In the end they will go away: let's hope that he will learn from the experience.

trying_to_stay_afloat

I'm usually more of a lurker but had to reply to you as I posted the very same about my then 18yr old son last year.
He worked full time but on NMW and started taking out payday loans to go out socialising and buying games etc.


I checked with the CAB and they confirmed that the loans have no connection to you or your address and if he couldn't pay them back then the bailiffs could not seize our goods etc.


I had a long chat with him and basically told him the impact on credit reports for him when it came to renting and buying things on credit and also pointed out that I would not let him starve but would not bail him out in any other way as he was an adult and had to take responsibility.


A year on and he has paid everything back and has moved out into his own flat. He says he has learnt his lesson and I believe him.


I think if I had bailed him out he would keep making the same mistake and never learn. Stay strong and just support him emotionally not financially. Hopefully you will have the same happy ending.
Best of luck

fevlo

trying_to_stay_afloat wrote: »

I'm usually more of a lurker but had to reply to you as I posted the very same about my then 18yr old son last year.
He worked full time but on NMW and started taking out payday loans to go out socialising and buying games etc.


I checked with the CAB and they confirmed that the loans have no connection to you or your address and if he couldn't pay them back then the bailiffs could not seize our goods etc.


I had a long chat with him and basically told him the impact on credit reports for him when it came to renting and buying things on credit and also pointed out that I would not let him starve but would not bail him out in any other way as he was an adult and had to take responsibility.


A year on and he has paid everything back and has moved out into his own flat. He says he has learnt his lesson and I believe him.


I think if I had bailed him out he would keep making the same mistake and never learn. Stay strong and just support him emotionally not financially. Hopefully you will have the same happy ending.
Best of luck

That sounds like great advice
Support to help him deal with the PDL's on his own
Sounds like the best way forward