Finance Express?? Who is this likely to be??

Therese1

I may be back for more advice .... If and when my brother actually asks me for help...! In the meantime...I'm just trying to get a bit prepped by finding out what I can first...

82yr old Mum just off the phone to me in a panic saying she has had several calls for my 59 yr old brother from this co. He lives at home, working, low pay, no dependants etc. they just keep saying they'll try later.

He is very private and I know little of his finances (though I know he has been in debt in the past but I've no idea of details) however, Mum says he's been asking when I'll be round so hopefully that means he wants my help.(I will wait to be asked) ...

So...is this a payday loan or debt recovery?

All mum knows is that he said recently that he has snookered himself cos he's made a mistake (this is a FIRST...it has ALWAYS been the banks fault/mistake in the past���� never his!! )

I may be putting 2&2 together and getting 6 but could he be in a DMP and underestimated his budget and has left himself short? If so is it adjustable??

Sorry for the vague ramble...he and I are at opposite ends of every spectrum ...financially AND family...he's oldest I'm youngest...of 10!!

Heffi1

A quick google search brought this back https://www.expressfinanceloans.co.uk/ there are about 770,000 results just from adding in Finance Express, so it looks like a payday loan company.

NHS_worker_bee

It rather sounds like a payday loan company. My younger brother (lives at home) was in a similar sounding situation, he told my mum the frequent phone calls were just sales calls but I knew they were too persistent for sales calls.

Luckily we intercepted the calls, forced him to confess it was a payday loan (it was - with PDUK - but the company who rang were a debt collection company the loan had been sold on to).

It's paid and sorted now. Hopefully he has learnt a lesson. My advice from our family's experience would be to have that awkward conversation about money/personal finances/debts sooner rather than later, so you can get whatever it is sorted before the amount owed escalates. Best wishes.

Therese1

Thanks for your responses....yes...it is payday loans !! However the reason he wanted me was to be guarantor for a loan to pay this off!! .£1500....at 60% over 3years!!!!!!

In my wisdom ....you may shoot me down....but I have responded with a 'no...I'd rather lend you this myself for 15% for 2 years!! I can afford this and it's obviously much better than anything I can earn in any bank....it gets him out of a HUGE hole....but I'm also aware than maybe I'm baling him too easily?!

This is for sure ....he will HATE being in debt to me (not had a response yet) AND he know that direct debit is a MUST.... And that this is a once only offer!! However he doesn't need to know that I can afford to lose it (that's the theory of lending anyone money I think)

Am I being really cheeky at asking for 15% or just daft and naive at getting involved?? We are not a very communicative family so I have no idea if I'm the only one!!!

sourcrates

Hi,
Its natural that you should want to help out, but if its just the one payday loan, he does not have to pay this back in one lump sum, oh yes they may say he does, but that's not true, he can come to an affordable arrangement with them and pay them back himself over time, further borrowing, even from family, is not really the way to deal with it, it can lead to even more debt and more trouble, from how you describe him, he doesn't sound the type to be asking strangers for help, or probably too clued up on his rights, so advising he get help from that direction may not be too much help !!

dancingfairy

Ouch. Personally I would be wary. Is this his only debt? Are you sure? Can he afford to repay you? Can you afford to lend him this money? What if he doesn't repay you? Can you afford to lose the money or possibly have to go to court? Is he capable of budgeting? If he overspends on a day to day basis then he will just wrack up more debt. You bailing him out may not teach him a lesson.
He might be better off speaking to a debt charity such as National Debtline or Stepchange who are free, impartial and can go through his options with him. If he has to default and it wrecks his credit rating and has to make a payment plan it may stop him getting into a mess again in the future as he won't be able to get credit for a while.
df

-taff

If he's not going to pay them back, what makes you think he'll pay you?

Therese1

Thank you all....I hear you loud and clear! Bear with me please....but give me your thoughts too to keep me on track!


I have made the offer (by email) so I feel that it is unfair/unreasonable to renege.....however, am I in a position to set some conditions or not (as far as they are not legally binding etc) e.g.....
"I am doing this to help you and not to release you to take on more debt. I want you to agree to this before I give you money...

- pay off the payday co immediately and in full
- set up direct debit to me and no excuses bar being made redundant
- use any spare to pay other debts and not just to spend (I don't know how much the pdl is)
- don't ask me for another loan

I know it's not worth the paper it's written on but sets out my stall? I would never go to court (and I can afford the risk but he doesn't need to know that) Family dynamics play a part....I'm the youngest but probably most financially savvy of all of us which I think grates on some of my siblings. Not right or wrong but I won't ever be allowed to be anything other than "the baby". That's why I don't feel in a position to sit him down and ask all his circumstances etc. he is intelligent enough to know the theory...clearly can't work the practice but that's not my responsibility is it (unless he actually asks me to go thro it with him)

Btw all been by text/email cos he works shifts and I'm often working away....

Thanks

Therese1

Presumably with a 60% interest rate he doesn't have good credit??? I can't bear anyone having to pay that amount!!

NHS_worker_bee

Therese1 wrote: »

- set up direct debit to me and no excuses bar being made redundant

I think he will only be able to set up a standing order from his account to your account, not a direct debit. He could cancel the standing order at any time and you wouldn't be able to reinforce the repayments, you would be relying on him to do the right thing.

So (as others have said) the question is, do you trust him?