Fraud on loan application

Clau32

Hi everyone! I have been through a terrible patch this last 3.5 years. I realised with the help of domestic abuse services that my husband was abusive. I left him with they help and started to build a new life. I was them on maternity leave and took a loan to start buying basic furniture and white goods as I left only with our clothes and the children. 8 months later I lost my job as the company refused to be flexible on hours. I started to go deep into depression and debt. My union appointed a solicitor and we took my former employer to court. Struggling with debt I applied for a loan to pay the 2 credit cards and what was remaining of the previous loan. I was then left with less than a £1000 on my account. With hopes of winning in court and fighting depression and social anxiety I spent on those 2 cards again. Used my overdraft to pay for the minimum payments and the loan hopping to win the court case and pay it all off. I lost the court case today. I’m panicking as when I applied for the loan I did not update my records with the bank. Just didn’t seem important at the time. I went to the bank when I change jobs in 2012 to get mortgage advice and to update my records. The adviser started to fill in the new details but as I didn’t have the address of the HR, which is not where I worked, he didn’t do it and said that I didn’t need to bother about doing it, that what counted was my wage. On the day, with the despair I saw the name of my previous company there and old wage and still clicked APPLY. Now I won’t have the money to pay the loan that was in fact £14000+high interest = £22000. Plus 2 credit cards and overdraft =£27000 in total. I’m back at work but on low income as can only do 20 hours having 2 small children and I get benefit to complement the rent. Can / will I be accused of fraud? What shall I do? I’m thinking in applying for BR but worried about the loan application please please advice, I’m so worried.

Ben8282

I personally believe it highly unlikely that anybody will accuse you of fraud at this point.
Can you please clarify when you made the loan application in question.

Clau32

It was September last year. I was waiting for the hearing at the employment tribunal that September and it got postponed. Took a whole year for another date. The hearing was September/2019. I got the result today. The lender HSBC dropped in half the credit availability in my credit card saying they looked into my account and they are a responsible lender etc. Just after I had use £6500 of the loan to pay the card. At that stage I was on benefit for a year and all benefits payments coming into my HSBC current account. So in my head they knew them I had no other income and I was no longer on the 34K wage I used to have while working.

Clau32

Ps. I have never delay payments until last month when I simply couldn’t do anymore. It was too much and making my rent late. So I prioritise keep up to date with rent and council tax etc

Clive_Woody

I would suggest you call one of the free debt charities (such as Stepchange) who will be able to talk you through your options and even help with negotiating with your creditors.

Ben8282

I can't imagine anybody will accuse you of fraud at this point. They won't be llooking for it.
But as has been suggested above you do need help with your situation.
Also, when discussing your problem with anybody, limit what you say to being unable to meet your credit commitments as a result of loosing your well paid job and having to take a much lower paid one. Omit all the rest of the story. Good luck.

boo_star

Clive_Woody wrote: »

I would suggest you call one of the free debt charities (such as Stepchange) who will be able to talk you through your options and even help with negotiating with your creditors.

Are you still buying this crap?

It's complete horsemanure.

Clive_Woody

boo_star wrote: »

Are you still buying this crap?

It's complete horsemanure.

You speak from experience?

phillw

Ben8282 wrote: »

Also, when discussing your problem with anybody, limit what you say to being unable to meet your credit commitments as a result of loosing your well paid job and having to take a much lower paid one. Omit all the rest of the story.

Yeah, life story isn't important. They have no way of knowing whether it's even true.
All it tells them is you want them to feel sorry for you & people who work with people in debt hear so many stories that they can't afford to for their own mental health.

Don't focus on the past or what could happen in the future, focus on what is in front of you.

I'm a little puzzled about a loan application that prefilled in employer and salary, I've never seen that before. If I were in your situation and they brought it up then I would probably say that I didn't notice the salary figure on the web page. Most T&C say you are supposed to inform lenders of drops in income, but again say sorry for not realizing.