Parent took out a loan for home improvements but changed their mind

wannaask

My mother took out a loan to help me out with debt. The reason stated on the loan application was 'home improvements'. She was considering getting home improvements but decided to help me instead and we will sort out home improvements over time. Can she or I get into trouble for this?

Ebe_Scrooge

Technically it could be construed as fraud.  In reality there's almost zero chance of the lender even finding out, let alone doing anything about it.  As long as the repayments are all made on time, I really wouldn't worry about it.

wannaask

Ebe_Scrooge said:

Technically it could be construed as fraud.  In reality there's almost zero chance of the lender even finding out, let alone doing anything about it.  As long as the repayments are all made on time, I really wouldn't worry about it.

I don't want my mom to face any consequences of this, should she call the bank to tell them that she is using it for a different purpose? I have the money in my account and not paid anything yet. Would the bank ask for the funds to be returned if she were to notify them?

Ebe_Scrooge

I honestly wouldn't bother.  The likelihood of getting into trouble is remote in the extreme.  If you did phone them up, one of 2 things could happen.  Either they'll say "don't worry about it".  Or they'll ask for the funds (plus any accrued interest) to be returned, and possibly a fraud marker placed on your mum's file.

I applaud your honesty, but in this instance - if it were me - I'd let sleeping dogs lie.  But do make sure that all repayments are kept up to date.

Sncjw

So effectively you consolidating your debt but risking your parents credit file now. 

I would give it back to them and let them use it for home improvements.

Then get yourself on the debt free wannabe page and post an soa to get yourself out of debt without dragging others into it 

aoleks

1. your mom did NOT take out a loan for home improvements and then decided to help you out, your mom took a loan in her name to help you...

2. the actual reason on the form is one of those trivial things, like telling them whether you rent furnished or unfurnished. might have had some value a while back, but it's not really one not to sleep over

3. the bank couldn't care less about your loan. approved means they checked everything there is to check and what you do with that money, frankly, is entirely your business. there might be something in their contract saying you can't use it for x, but that doesn't trump your free will .

4. the word "fraud" in one of the comments above makes it sound a lot more serious, significant and scary than it is. a typo in a form is not a fraud, a wrong click is not fraud, changing your mind is not fraud so simply go about your life and everything will be fine!

0 risk!

maisie_cat

I took out a loan for my brother and used home improvements. The loan was repaid by me with no issues although my brother didn't pay it all back.
From your mother's perspective the bigger risk is you not paying it back and her being lumbered.