Paying back payday loans

bumbleberry68

My son has got himself into some bother with various payday loan companies plus a bank overdraft he can't afford, plus a massive O2 final bill. Things finally came to a head and I took him to the CAB, he has done as the CAB said to do, he has closed his bank account and written to all the debt people.

He now doesn't have a bank account and I am having his money paid into a bank account I don't use and having just started a job today, he will have to sit down on pay day to try to get him used to working out what he has to pay out of his wages. Needs serious money management help.

Is there any way payday loan companies or other debts can be paid without going through my bank account? I don't want my name associated with these debts, I'm worried it will affect my credit in the future too. There must be another way for people that can't get bank accounts (as he can't now).

Any advice would be gratefully appreciated.

[Deleted User]

He should be able to open a basic bank account. Has he asked his previous bank about one?

You're right to keep your account details away from them. It wouldn't affect your credit history, but they could take repeated payments if needed.

bumbleberry68

he has asked for a bank account with just a cashpoint card but was refused. He must not have a bank account that he can use as visa or on the internet or he will probably do the same thing again. He hasn't learnt how to manage his money yet, he was getting JSA and spending the £55 the first night he got it.

So I need a different way of paying it that doesn't involve me, can these prepay cards you can get let payments like that be taken from them?

SeduLOUs

He must be able to open a basic bank account. Try a different bank. A girl at my work was up to her eyeballs in payday loan debt and council tax CCJ and was asking to be paid in cash as she couldn't open a bank account. I walked to RBS with her, and they allowed her to open a basic bank account the same day.

I appreciate that you are worried he will do it all again, but he does need some sort of bank account or it will likely cause a lot of difficulties around benefit payments and wages.

He needs to learn to grow up with money. I know you are trying to help, but holding his funds for him won't teach him anything.

As previously stated, payment of the loans from your bank account will not have any adverse effect on your credit file, however I would not risk it as the companies may request more money in future should he continue to take out loans.

Perhaps getting some software like YNAB (free trial for 30 days and cheap to buy afterwards) will help him to work out what he's got and what he hasn't. Help him, but don't do it for him.

Tixy

He definitely needs to open a new basic bank account. Not with the same bank as the original debts but with a different bank.

I would agree that taking control of his money won't help him learn about money/debts/responsibility at all. However if you did want to do this for a while (and he agreed) then you could keep hold of the new bank card and he could let you reset the online banking password so you can access it and he can not.

Personally I would be more inclined to let him spend his JSA or paypacket on the first day if he chooses to -but then refuse to lend him any money or buy him anything for the next 2 weeks. He'll presumably soon learn to budget or accept he will be staying in a lot.

If you do want to pay the debts from your account - send the payments from your bank account via online banking/standing order (this would be preferable to setting up a DD or going on to the creditors websites and filling in your bank/card details).

bargainbetty

Nationwide also do a basic account. Make sure you ask for a basic account, and specify that they are not being asked for an overdraft, chequebook, card etc. If you just apply for a bank account, they automatically assume you want a regular one.

Well done for helping him but not bailing him out! He needs to learn that once his money is gone, it's gone, and he is young enough to learn for it and move on.

bumbleberry68

Ive just got in touch with christians against poverty as they do counselling and open an account that he pays into each month and then the payments go out from that account. I do let him spend his money in the first day but then if he can't get to work because he can't afford the ferry, do I say tough, you'll just have to lose your job then? Then he has no job and living here rent free, can't move out cos he has no money for a deposit for a place, can't chuck him out on the streets.

Yes I know I have to let him do this himself and I will, just need to get things set up.

iolanthe07

Well you could always pay for the ferry yourself and pack him some sandwiches for his lunch. It would be silly for him to lose his job because he can't afford the ferry.

SeduLOUs

bumbleberry68 wrote: »

Ive just got in touch with christians against poverty as they do counselling and open an account that he pays into each month and then the payments go out from that account. I do let him spend his money in the first day but then if he can't get to work because he can't afford the ferry, do I say tough, you'll just have to lose your job then? Then he has no job and living here rent free, can't move out cos he has no money for a deposit for a place, can't chuck him out on the streets.

Yes I know I have to let him do this himself and I will, just need to get things set up.

Sorry but it sounds like he knows he can get away with it. If he can't get to work because he's spent all of his money mum will sort him out as she won't allow him to lose his job!!

In that situation you should only 'lend' him the money he needs, and make him pay it back to you when he gets paid. Otherwise he's just going to continue to take you for a ride.

If he still can't get it into his head, and persists with deliberately running out of money and expecting you to bail him out, I'd give him a final warning, and the next time I'd tell him to phone work and explain that he hasn't budgeted enough money to allow him to get to work.

I agree it shouldn't have to come to that, but he can't expect you to sort everything out for him forever, so perhaps losing his job would be the final kick up the bum he needs. It's certainly better to lose his job with a roof over his head than when he's out on his own anyway, and hopefully he would learn a valuable lesson from it.

bumbleberry68

I wouldn't just give him the money he would pay me back. He's already lost one job due to a multitude of sins! And hasn't learnt from that, never learns from anything, but I don't bail him out, when he was working I never leant him any money, I have only leant it to him since he is on JSA recently e.g., we had the paramedics out and he couldn't go to his signing on, it took them 2 weeks to send the sick form to him to fill out so he hasn't had JSA for 2 weeks while they are reviewing the form. So I leant him the money he would get, when he gets it backdated he will give me the money back, also he won't get paid from this new job for about 5 weeks and he hasn't got 5 weeks of JSA left. But he will pay me back out of his first wage packet. I also haven't paid any debts or will I, I took him to the CAB. I don't just hand money to him left right and centre, I don't have money to do that, I've just finished uni course so I have no income atm.

As a parent I just want to help him and by that I mean help him to manage his money better.

bumbleberry68

He is taking sandwiches to work and Im lending him the money until he gets paid to get 5 day ferry pass each week. What I am referring to if I let him have his wages paid into a bank account he opens, he spends it all in the first week or 2, then can't get the ferry for the rest of the month. He is having his wages paid into an account in my name and I will give him weekly pay, rather than letting him have the whole month in one go