Serious debt problem after payday loans given to 17 yr old

13claire

Before he met me my boyfriend was going through a tough time and took out multiple payday and logbook loans.

for the past 2 years he's been trying to pay them off but he's been struggling with most months the repayments taking almost all his monthly incomes.
The past 3 months he's been signed off work due to depression and also a stomach illness that is yet undiagnosed and he's currently going through tests. This now means he can't pay back his monthly repayments

Hes stuck his head in the sand a bit its just all to much for him.
I think the best way would be to consolidate the money and perhaps take out another more sensible loan or credit card with 0% for a year or something so he can pay back all these loans that are charging him £80 interest a month a least to make it more manageable.
As you can imagine his credit score is awful so is anyone ben going to give him anymore credit or is he just stuck now?

Thanks

TBagpuss

I would suggest that he speak to Stepchange http://www.stepchange.org/ who can offer free advice and help in dealing with the debt -

I very much doubt he is going to be able to get a 0% deal but it's possible he may be able to consolidate the debt into a more manageable amount (assuming he is also willing and able to stop taking out fresh borrowing) if he looks at more reputable lenders, depending on how much he owes altogether, and whether he has defaults etc.

Does he have any assets?

It may be that he needs to sit down and work out his income and outgoings, and then make offers to the creditors to pay the debts at a more manageable rate. Stepchange or the CAB may be able to help him with template letters.

Obviously any kind of debt management plan or bankruptcy would have a significant impact on his credit for a long time to come, but if he has no assets and limited income it may be that he will need to consider those possibilities now rather than later.

How much does he owe altogether? Does he have a car or any other items which he could sell to clear the debt and get himself straightened out?

heartbreak_star

If he is determined to get a loan, can you take one out for him and he repays you?

If not, I'd definitely speak to one of the debt charities.

HBS x

dealer_wins

If he was lent money when he was 17 this is actually illegal. Im not sure whether he would be done for fraud or the PDL would be done for illegal lending though?

I guess it depends if he lied on the application form about his age.

Caladan

dealer_wins wrote: »

If he was lent money when he was 17 this is actually illegal. Im not sure whether he would be done for fraud or the PDL would be done for illegal lending though?

I guess it depends if he lied on the application form about his age.

Sorry to correct you here, but it's not illegal to lend to a 17 year old. A company can lend to a 5 year old if they want.

However, a contract signed by a 17 year old (or younger) is not enforceable. Therefore, although he can borrow, he is not legally obliged to pay it back.

This is why no one in their right mind lends to under 18s. You need to be 18 to be legally liable under the terms of a contract.

That's my understanding anyway.


Edit - This is taken from the CAB website:
Debt

As a child or young person, you cannot normally be taken to court for debt. This is because you cannot be legally held to a contract you make when you are under 18. However, there are some exceptions to this rule. You can be held legally responsible for any debts you run up to buy things that you need like food, shelter or clothing.

There may be other debts you can be held legally responsible for. If in doubt, consult an experienced adviser, for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by e-mail, click on nearest CAB.

As a parent you are not usually under any obligation to pay the debts of your child. However, if you acted as a guarantor for a contract they entered into, you will be responsible for any debts under the agreement.

For more information on debt, see Help with debt.

http://www.adviceguide.org.uk/wales/debt_w/young_people_money_and_consumer_rights.htm#debt

marliepanda

PeacefulWaters wrote: »

He lied about his age to obtain credit.

They may not be able to enforce the debt but they could sure ask the police to investigate his fraud.

Will it not be likely to be lots of separate loans now, as they always roll over etc, I doubt it will still be the same loan from when he was 17 knowing the way these companies operate.

Edi81

heartbreak_star wrote: »

If he is determined to get a loan, can you take one out for him and he repays you?

If not, I'd definitely speak to one of the debt charities.

HBS x

Do not take out a loan on his behalf. There are countless stories on here about people that have done this and it's all gone horribly wrong.

He needs to speak to a debt charity.

spacey2012

If he was 17 any contract he signed is null and void.

The Fraud issue is a separate matter.

Anoneemoose

spacey2012 wrote: »

If he was 17 any contract he signed is null and void.

The Fraud issue is a separate matter.

Whar about if he renewed any of the contracts after his 18th birthday?

Antimoron

heartbreak_star wrote: »

If he is determined to get a loan, can you take one out for him and he repays you?

If not, I'd definitely speak to one of the debt charities.

HBS x

Astonishing beyond belief.

How have you been on this forum so long, yet suggest someone take out a loan for someone else? Especially one who doesn't have a history of reliably paying back?

Who becomes liable for it?

Edi81

Anti moron - I know! Unbelievably stupid suggestion!