Advice about loan needed please

toadyspud

Hi,

My nephew was granted an unsecured loan of £10,000 by Lloyds Bank, despite never being employed, no savings, and living in rented accommodation - he is 21. We were not aware of this, until a letter came through to his Mum's address stating that his loan payment is overdue. A previous loan (to a lending company not Lloyds) had late payments that were covered in the end by his Mum when she found out about them. I cannot understand why anyone in their right mind would have granted a loan, particularly of this size, to someone with no confirmed income/employment, a poor credit history and no means to support loan repayments. I already assume that he lied on the application, but when people are having problems getting loans of any amount, it does seem ridiculous that nothing was checked by the bank.
I am worried about his Mum (my sister), as she is on a limited income, and has long term health problems so does not need this added stress. Lloyds obviously won't speak about the account for confidentiality reasons, but was wondering if anyone had come across a similar situation. Any help would be greatly appreciated.

Gaz83

I agree with you that I can't see any mainstream lender lending money to someone with no income or employment and no means to repay it.

This situation has come up here on these forums a few times - it is often the case that the applicant has lied on the application form to get the money they want.

The loan isn't his mum's, it's his. By covering for him and making the payments the last time he did this, he's no incentive not to do it again. The only lesson he's learned is that his mum will bail him out if he messes up.

Ben8282

toadyspud wrote: »

Hi,

My nephew was granted an unsecured loan of £10,000 by Lloyds Bank, despite never being employed,

I cannot understand why anyone in their right mind would have granted a loan, particularly of this size, to someone with no confirmed income/employment, .

I can't understand it either.

Nebulous2

It's doubtful if you're being told the whole story.

There is some interesting, but painful advice for families, from charities involved with people who have addictions - look for articles on enabling, or enabling behaviour.

Basically the reason why most of us don't get into unmanageable debt is because we are aware of or may have even tasted the consequences. If family and friends take away the consequences there is less reason for the person to stop the damaging behaviour.

JayRitchie

toadyspud wrote: »

Hi,

My nephew was granted an unsecured loan of £10,000 by Lloyds Bank, despite never being employed, no savings, and living in rented accommodation - he is 21. We were not aware of this, until a letter came through to his Mum's address stating that his loan payment is overdue. A previous loan (to a lending company not Lloyds) had late payments that were covered in the end by his Mum when she found out about them. I cannot understand why anyone in their right mind would have granted a loan, particularly of this size, to someone with no confirmed income/employment, a poor credit history and no means to support loan repayments. I am worried about his Mum (my sister), as she is on a limited income, and has long term health problems so does not need this added stress. Lloyds obviously won't speak about the account for confidentiality reasons, but was wondering if anyone had come across a similar situation. Any help would be greatly appreciated.

Its not uncommon. He needs to get a job (or two) and start paying. His mother should not do anything - she cant afford to and its probably not a good idea anyway.

Caz3121

toadyspud wrote: »

I cannot understand why anyone in their right mind would have granted a loan, particularly of this size, to someone with no confirmed income/employment

what income did he put in the application form?....I suspect not the truth.
As an adult he should face the consequences of his actions. Mum bailing him out teaches nothing, it is not her problem.

Davy_Jones_II

As above, it seems likely that he committed fraud in his application. I’d start by looking into that.

boo_star

Another "I obtained money fraudulently" case, although at least the OP waited 12 years to post it, instead of the usual newbie accounts.