Monthly cash into TSB account?

Ayupduck

I've been lending my very good friend money for a number of years, she's always been very irresponsible with her finances due to her multiple addictions and not putting money aside for school uniforms and such so over the years I've been helping her out with money every week and she pays me back using her monthly child benefit. Its turned into a viscous circle as once she's paid me back she's left with little money to feed her kids so she borrows money off me again and she can become quite demanding with it, I just can't say no, I hate seeing her kids go without. On child benefit day she has avoided me and I have had to go with her to the post office to get my money back, I asked her if she can transfer a monthly amount of £247.20 straight into my TSB-cash- account on benefits day as this would be more convenient for us both. I was wondering if this would cause any problems with my bank? she would deposit the money in cash into my account every month, she hasn't got a bank account to transfer it. Would my bank question this, we would have trail of monies but obviously no loan agreement.  She still has quite a few months left before she pays the whole sum off. Thank you.

etienneg

These days someone else cannot pay cash into your account. Deposits need to be made by the account holder using their card. (Don't even think of giving her your card to impersonate you!!!) The reason is that this is classic money laundering behaviour. There is no audit trail with cash - nobody knows where it has come from, so it could be fraud or drugs or any other such illegal activity as far as banks are concerned.

General_Grant

Santander and Nationwide have banned third party cash deposits but TSB still allow this as far as I know. 
However if a Post Office were used to pay in, the other person would need a TSB personalised payin slip (so from your pay-in book) and this might also be required at TSB branches.
How much does she owe in total?  Rather than receiving a repayment and then lending again every week, why not take less cash each week but say you can no longer lend any?  Then put her in touch with a money management service.

ETA:  I wrote the above without having seen etienneg's response.  Looks as though I am behind the times.

Ayupduck

etienneg said:

These days someone else cannot pay cash into your account. Deposits need to be made by the account holder using their card. (Don't even think of giving her your card to impersonate you!!!) The reason is that this is classic money laundering behaviour. There is no audit trail with cash - nobody knows where it has come from, so it could be fraud or drugs or any other such illegal activity as far as banks are concerned.

Oh I didn't realise this. My husband normally deals with the finances but he's away for 3 years. I just find it inconvenient having to pay her visits every 4 weeks as she can be difficult.

Ayupduck

General_Grant said:

How much does she owe in total?  Rather than receiving a repayment and then lending again every week, why not take less cash each week but say you can no longer lend any?  Then put her in touch with a money management service.

He only charges her half bubble now instead of double bubble. She's still being irresponsible with her finances.

Yorkshire_Pud

Ayupduck said:

General_Grant said:

How much does she owe in total?  Rather than receiving a repayment and then lending again every week, why not take less cash each week but say you can no longer lend any?  Then put her in touch with a money management service.

He only charges her half bubble now instead of double bubble. She's still being irresponsible with her finances.

What?

Who is the money lender, loan shark here?

Poor_Leno

she'd be better off with a credit card, plus less hassle for you.  
Wow...50% interest, that's quite a steep repayment demand for someone whose a very good friend!

ceredigion

Ayupduck said:

etienneg said:

These days someone else cannot pay cash into your account. Deposits need to be made by the account holder using their card. (Don't even think of giving her your card to impersonate you!!!) The reason is that this is classic money laundering behaviour. There is no audit trail with cash - nobody knows where it has come from, so it could be fraud or drugs or any other such illegal activity as far as banks are concerned.

Oh I didn't realise this. My husband normally deals with the finances but he's away for 3 years. I just find it inconvenient having to pay her visits every 4 weeks as she can be difficult.

Only 3 years !!!

Ayupduck

I was wondering if it would be feasible and try and open a basic bank account for her and have her £247.20 child benefit paid into it and with me being a dear friend would manage this account for her?,. My husband would normally take care of our finances so I'm like a fish out of water with this. I'm worried that my friend will stop making payments now my husband is away so I need some way to guarantee that payments continue as I also have a family to feed and clothe. I just feel my friend needs to take responsibly of her life and quit her addictions. She's been a very good and loyal friend for years and I do wish her the best, I really do.

Yorkshire_Pud

Ayupduck said:

I was wondering if it would be feasible and try and open a basic bank account for her and have her £247.20 child benefit paid into it and with me being a dear friend would manage this account for her?,. My husband would normally take care of our finances so I'm like a fish out of water with this. I'm worried that my friend will stop making payments now my husband is away so I need some way to guarantee that payments continue as I also have a family to feed and clothe. I just feel my friend needs to take responsibly of her life and quit her addictions. She's been a very good and loyal friend for years and I do wish her the best, I really do.

Best would be for your friend to contact CAB and Crimestoppers.

notveryeducated

Only lend money to somebody if you don't mind losing it.