18 year gets old bank loan

DaisyClaire

cameron_milne wrote: »

I'll say it again I am looking for advice and perhaps a straw to cling to that can get me out of this mess, but I think I'm barking up the wrong tree. There must be another way I appreciate what you are all saying but I know all that dont need to hear it over and over again !

Aaarrhhhh, right...you are the 18 year old aren't you?

This is one of those 'I have this friend' scenarios!

ZootHornRollo

i think this thread should really be titled "how to take out a bank loan then wriggle out of paying it back"

Incisor

cameron_milne wrote: »

You havnt been paying attention have you ?

To be fair, as you raised the matter in the first place, and you have had good honest answers, it only matters whether you have paid attention. You are the grandfather of the £5000 loan problem.

blue_haddock

I think the whole problem here is the fact the OP is as she suggests clinging to an idea that someone will come up with a way to get her son out of the predicament he is in without paying back the loan. The problem being there isn't any realistic way to do this.

He applied for a loan and based on the info given the bank approved the loan and gave him the money. He has then presumably spent the money and has not made a repayment, the only way out of this really is for him to contact the bank and agree some kind of plan with the bank to pay off the loan.

Incisor

cameron_milne wrote: »

You chose to miss the point or you cant see it cos' you are to intent on preaching and moralising the fact is an 18 year old borrowed £5000 without a credit record and a regular income stream from a mainstream bank there must be something wrong if that can happen in this day and age no matter what info he gave the bank surely they have a duty of due diligence. You dont have to reply if you are going to tell me what a naughty boy he is again in a diifferent way I already know that

Then, as nobody blames the banks, the only option is to blame the parents.

waddy80

Warning cameron milne-some advice but some you might not like!

I'm not sure on RBS policy, but with some banks it is not essential to have permanent contracted employment. If the banks only lent to people who had permanent contracts there would be a lot of people excluded from getting a loan.

If the 18 year old had held an account with RBS for a while, the turnover going through the account previously would probably have satisfied the banks internal credit score.

As a lending officer at another High street bank, I have lent money to lots of responsible 18 year olds with no problem. I try to spend as much time with them as possible and advise them how to budget. I believe that a lot of money management could be taught in schools, as it is not covered at present. But I was taught by my parents, and I believe this really helped me.

How did he apply for the loan? It could have been an internet or phone application. In which case he may not have realised what he had done.

I would suggest that the 18 year old contacts the citizens advice bureau, if he cannot afford his loan.

I also agree with other posters, who have said that the parent should not be taking such a pro-active view to sort this out. I would have been devasted if my mum/dad dragged me to the bank to sort out my finances. I have dealt with 'pushy parents' in the past, and we always see them again. Mainly because the 'child' never learns how to deal with things themselves solets things get so bad that mum/dad has to sort it out.

Also your attitude to other posters has been quite horrible and maybe you should try and calm down.

Oh, and your chances of proving the bank was in the wrong - extremely slim. Your more likely to prove that the 18 year old gave incorrect information at the time of application.

MrsTinks

OP please listen to Waddy... and in fact all the other posters.
You might not like the advise but you asked and they answered.
It happens that I agree with them. If indeed your son gave them false information to get the loan then you're helping him into a whole new world of hurt by trying to pass the blame on to the bank and drawing attention to it...
He's 18 - he's a grown lad, and unless he's of diminished responcibility in a legal sense then the bank has not done anything against the law. Whether morally they should lend to 18 year olds is not the same as legally... I had a loan at 18 and I wasn't bringing in a fortune, heck I had a mortgage at 19! But although I am still in debt I have NEVER missed a payment!
Does my parents know about my debt? Yup - but it's MY debt and although my dad offered to pay it off for me some years ago I thanked him but this was MY lesson to learn.
You won't get the loan overturned or whatever - he has to pay this back one way or another - unfortunately because he's missing payments he'll now have marked his credit record for the next ooooo 6 years...
That means if he learns his lesson he will never have credit problems again after he's 24 - I'll bet you most of us here wish we'd had that lesson at £5000 and 18 years old!!!
Support him by all means, but he has to clean up his own mess. You should be there to help him learn the lessons but not to bail him out.

If you want advise it will always be freely given on any MSE forum, but that doesn't mean you should turn your anger on those posting answers just because they are not the answers you want to read.

Good luck & remember be nice to all money savers... (yup that's quoting Martin...)

MrsT

prudentsaving42

I'm 18 and will have a £17,000 student loan by the end of my course, I've got loads of overdrafts and high-limit credit cards. So it's not exactly about HOW he got it, but WHY? Did he buy a car? Get married? Spend it on booze? If he still has any assets or belongings he might be able to sell them on and repay a portion, eventually he could get into an agreement and payment plan with the bank to repay the outstanding balance according to his income and abilities.

Unfortunately the bank will not write off his loan as it was legal, is enforcable debt and he was consenting.

Andyf33

As an adult myself (although the wife might argue with me on that point) I am responsible for the commitments I make. Your son is no different to anyone else on here who has ever taken out a loan.

Having said that I am a father of 3 and wouldnt want my kids to struggle and would therefore probably make a deal and help them out. How about you commit to making half the monthly payments if he gets a permanent job and meets the other half. Then once the loan is repaid he continues making payments to you (at the same rate he was with his half of the loan repayment) until he has paid you back for the half of the loan you took on.

I will probably get slated for this advice but at the end of the day I would rather help out my kids than see them struggle whilst the bank makes money from them.

inmypocketnottheirs

Bet we do not hear any more from the OP!