Parents took out loan in my name...

LegacyUser

Hello,

Looking for legal advice as much as anything else...just back from visiting my parents, collected my mail etc and, upon getting home, opened my mail to find that, apparently, I had taken out a loan of €500.

Being a student and all (with very little cash) who swears by *not* taking loans, I knew this wasn't mine instantly and, instantly suspecting the worst, rang my parents. They just confirmed what I had guessed and yes - indeed - they had taken out a loan in my name without any authorisation.

So, here are my questions... can I rectify this? How does this impact my credit rating?

I feel really betrayed by my parents, and the worst thing is that my boyfriend was standing nearby when I opened the letter and thus, found out, and is now incensed. I really feel as though I'm stuck between a rock and a hard place. Any advice?

hullaballoo

Well, for a start, don't ever look for legal advice on a message board on the internet. You can imagine how much of a disaster that could be if the advice you got was wrong.

Go and get a solicitor for that. All solicitors are obliged to give free legal advice, so just go to your solicitor (definitely not your parent's one) and talk to him or her about it.

Did your parents not give you an excuse/reason/apology?

If they repay the loan properly, there should be no effect on your credit rating.

However, on the principle of the thing, all parties involved are at fault--your parents and the bank--so if I were you, I'd march down to the bank and demand a) an explanation and b) to have the situation rectified. There's no reason for the bank to have given your parents a loan in your name. None at all.

Go to your solicitor, get his advice, and then go to the bank and sort it out.

As for your parents, that depends on your relationship with them, but you have every right to be annoyed and give them a hard time about it. If I were your boyfriend, I'd be having some serious words with your parents.

LegacyUser

Thanks for the reply 'Hullaballoo'...

I'll be sure to go to a solicitor...there's a barrister on my campus who I'm fairly close with, might even pop into him if I can.

I should point out that it isn't an actual bank that gave them the loan, but some personal credit company which I've never been affiliated with. It's actually kind of scary that my parents, which could've been any stranger, since my parents have no form of I.D. on my behalf, could register for a loan in my name...

Again, thanks for the reply - I just feel weirdly betrayed by my parents, my credit rating is something that I don't want to be screwing with, since I just turned 18 a few months ago, and I loathe these agencies that take 25%... and I'm just really upset about it all... Thanks for listening, it helped, I'll be sure to act on your advice (despite saying not to ask for advice on the internet )

daiixi

woah, major fraud being committed by your folx..

I'd demand your folx pay the loan back ASAP, demand answers from your bank, re-direct your mail and (depending on how strongly you feel over this betrayal of trust by your folx) call the Garda.

this will affect your credit rating in two ways:

1. if they pay back the loan properly, it will do nothing but improve your credit rating;

2. if they fail to pay back the loan, it will adversely affect your credit rating.

leeroybrown

My suggestion:

1) Find out why your parents took out the loan, how they got it authorised and make sure they pay it back.

2) Call in to your bank branch and make an official complaint. You could also consider making a complaint to IFSRA.

You don't give any background to this situation. Based on the information you havn't included should decide how seriously you'll treat this from a legal point of view.

I wouldn't go straight to a solicitor as this will cost you money when there are cost free alternatives thay you can pursue first.

py2006

Hmmm, all sounds a bit too drastic to me!

I suggest talking to you parents first and ask them whats going on and why they did it etc!

I know its a bad thing to do but its €500 and not €50,000! I know thats not the point but take that into consideration as I think going down the legal route might be a bit much. After all they are your parents!

tuxy

daiixi wrote:

I'd demand your folx pay the loan back ASAP, demand answers from your bank

what could the bank possibly have to say on the matter? they dont give out free legal advice, you need a solicitor for that.

Canis Lupus

agrees with PY2006.

Firstly you don't tell us why you haven't asked your parents why they took out the loan. Maybe talk to them first would be a good place to start.

Secondly, how in the name of Betsy did your parents take a loan out in your name. Maybe it's just me but I would have thought that impossible otherwise every tom dick and harry would be at it.

Finally talk to someone in the know but €500 ain't the end of the world so don't go do anything totally silly, they are your folks at the end of the day.

Savman

How in the hell did they get a loan in your name? Defies belief tbh.

Moreso, are they that stuck for €500?!?!? ffs I'll lend it to them meself
I mean you're a student, usually its the other way around, the mind boggles...

Don't try and sue yer ma and da, a massive fight should do the trick (so they know how serious you are) and find out which stoopid credit company gave them money, and how exactly they got it (cheque?? surely it'd be put into your bank a/c or cheque with your name on it?)

dingding

The bank that gave the loan are probably in breach of the money laundering legislation. I was a signitorary on a club account, had to bring drivers license and 2 bills into bank just to sign on an account.

Defies belief that they got away with it.

complain to the banks head office. and the regulator.

ziggy

This post has been deleted.

Zillah

Do you people even listen? It wasn't a bank, it was a personal credit loan company. Its not like she can walk into the front of AIB and demand answers or anything.

tuxy

Zillah wrote:

Do you people even listen? It wasn't a bank, it was a personal credit loan company. Its not like she can walk into the front of AIB and demand answers or anything.

thank you, this is one reason why you should not ask for advice on the net, people will give answers after only reading half the story.

WhiteWashMan

well, someone somewhere is committing fraud.
dont you still need to sign a loan form these days?

i would havwe a serious sit down withthe parents and find what the hell is happening.
while im sure your parents have a good reason, id still want to know what it is, and id still want to cover my arse in case something happened. you know, a signed letter saying that they had done it. just in case...

Victor

Talk to your parents, hear them out.

I saw a cartoon once, it should and young man and his father. The caption was "Right son, you are 18 now, you are a man. You owe your mother and I $210,000".

They did a bad thing, that doesn't make them bad people. Sort it with your parents, if they do anything like this again, report them.

The Sweeper

...are you 100% certain that your parents actively committed fraud and took out a loan, or could you possibly have misread what was posted to you? Seriously - credit companies will constantly offer to throw money at you - they'll send you cheques you can write against your credit cards and all sorts of things.

Are you definitley in debt to the tune of €500, a loaned sum authorised, taken and presumably spent by your parents? Or could they have just put through an application for you for a credit card for college, or somesuch, and now the credit company are bombarding you with offers of cash?

LundiMardi

eh, i'm sorry, but you can't just take a loan out in someone elses name ok? I think you need to calm yourself and talk to you PARENTS! not a solicitor ffs!:rolleyes:

The thing i can think of is that they took out a credit union loan, if you were under 18 then i don't think you need to sign anything, just them, i think!

Other than that, if they took out a loan, your signature would have to be there, so they forged your signature....

Wrong? Yes. Fraud? Yes.

Would you be stupid to go to a solicitor BEFORE confronting your parents? Yes.

Victor

hullaballoo wrote:

All solicitors are obliged to give free legal advice

No they are not obliged, although many will give a free first consultation.

[Jackass]

I work in a bank...its very simple really...

call them, say there appears to be a mistake on your account, they'll tell you its a loan, you ask for a copy of the documents you signed to authorise it and a copy of your ID they have on record...

If they have neither, request the balance be cleared, as this has nothing to do with you...

If they have both, you have a copy of the fraudulant documents...tell them you never signed those...that's not you, and request the balance be cleared.

Either way (regardless of the fact they're your parents) this is a banking error...you didn't loan money, so you don't owe money.

(assuming you're over 18 and the account is in your name alone)

LundiMardi

DubGuy wrote:

I work in a bank...its very simple really...

call them, say there appears to be a mistake on your account, they'll tell you its a loan, you ask for a copy of the documents you signed to authorise it and a copy of your ID they have on record...

If they have neither, request the balance be cleared, as this has nothing to do with you...

If they have both, you have a copy of the fraudulant documents...tell them you never signed those...that's not you, and request the balance be cleared.

Either way (regardless of the fact they're your parents) this is a banking error...you didn't loan money, so you don't owe money.

(assuming you're over 18 and the account is in your name alone)

yes, but i think the bank will be legally obliged to contact the police, hence the parents are done for fraud..

[Jackass]

true, but put a copy of those documents infront of them, and its a pretty good threat to pay off the balance

padser

There are two options imo.

You have not taken out the loan. Go to bank/lending institution and show them the letter they sent you. Tell them you had nothing to do with this. They do not have your signiture and had no authorisation to lend you money etc. Also demand that they remove all record of you from their systems (under the data protection act) and any credit history they have started on you. Make sure that they erase all record of the transaction from your personal record and this should ensure there is no effect on your credit rating.

The downside of this is that it will leave your parent in a world of Sh1t. That kind of fraud is serious and the bank/lending instiution will certainly go after them.


If you dont want to do this due to the trouble it will cause for your parents then you need to ensure they pay back the loan on time.


NB my personal opinion, and you should go to a solicitor to check this, is that now that you know about the fraud, if you do nothing except ensure your parents pay it back etc then you are in effect acquiescing to what happened. This would, i feel, leave you in a much weaker legal position if you were to object at a later date.

padser

hullaballoo wrote:

All solicitors are obliged to give free legal advice,

I didnt know this. Are you sure? To what extent?

Dave!

Minesajackdaniels wrote:

...are you 100% certain that your parents actively committed fraud and took out a loan, or could you possibly have misread what was posted to you? Seriously - credit companies will constantly offer to throw money at you - they'll send you cheques you can write against your credit cards and all sorts of things.

Are you definitley in debt to the tune of €500, a loaned sum authorised, taken and presumably spent by your parents? Or could they have just put through an application for you for a credit card for college, or somesuch, and now the credit company are bombarding you with offers of cash?

She said that she rang up the parents and they confirmed it.

This is a peculiar situation isn't it! Firstly, what did they need a loan of €500 for that couldn't wait...? Are you having a wedding or something and they went overboard on their own money? And secondly, how did they manage it without your authorisation?

Sounds very iffy

You should sit down with them (without the boyfriend) and find out all the details... maybe they wanted to surprise you with something... maybe they're in some financial difficulty... who knows? That's the first thing you should do -- forget about the bank, a solicitor, and the Gardaí for the moment! Find out the details before you do anything rash that could land your folks in alot of trouble.

Good luck and let us know what happens

[Jackass]

padser wrote:

NB my personal opinion, and you should go to a solicitor to check this, is that now that you know about the fraud, if you do nothing except ensure your parents pay it back etc then you are in effect acquiescing to what happened. This would, i feel, leave you in a much weaker legal position if you were to object at a later date.

Very good point.

daiixi

tuxy wrote:

thank you, this is one reason why you should not ask for advice on the net, people will give answers after only reading half the story.

*shrug* the OP's second post didn't show up for some reason when I posted my reply so the clarification that it wasn't a bank wasn't there. simple.

rsynnott

Ms. Money... wrote:

I should point out that it isn't an actual bank that gave them the loan, but some personal credit company which I've never been affiliated with.

Run, don't walk, to your closest solicitor.

dingding

Extract from www.ifsra.ie the financial services regulator coad of conduct for lending institutions.

Regardless on if it is a bank or other lender, they come under the regulator. The lending institute in your case has been neglectfull in point 2 and point 3.

As a previous poster said, you should contact the lending institute and threthen the ifsra on them.

A credit institution shall ensure in providing its banking services to consumers that
it:
1. acts honestly, fairly and reasonably in conducting its business activities;
2. acts with due skill, care and diligence in its dealings with consumers. In
particular, it must not recklessly, negligently or deliberately mislead a consumer as to the perceived advantages or disadvantages of any banking service provided;
3. has and effectively employs the resources and procedures that are necessary for
the proper performance of its business activities;
4. will, on request, assist a consumer in understanding the service or product that
the consumer has chosen from its product range;
5. makes adequate disclosure of relevant material information, including charges, in accordance with the relevant statutory provisions;
6. corrects errors and handles complaints speedily and efficiently. Where a
complainant is not satisfied with the outcome of the credit institution’s internal investigation into his/her complaint, the credit institution shall ensure that the complainant is notified of his/her right to refer the matter to the Ombudsman for Credit Institutions, or in the case of charges imposed for services to consumers and consumer issues generally, to the Director of Consumer Affairs;

LegacyUser

daiixi wrote:

*shrug* the OP's second post didn't show up for some reason when I posted my reply so the clarification that it wasn't a bank wasn't there. simple.

Yeah, it needed to be authorised before it showed up...not a problem!

I'll try and deal with all your queries in an orderly fashion . Firstly, I had already established contact with my parents - hence how I knew they did it and how I knew that it was indeed a loan.

Why did they do it? It seems as though my dads business is going down the tubes and they needed a pre-christmas boost... the loan is dated 21/12, so this checks out.

Padser - you've illustrated my main concern... I'm worried that I would be, in effect, aiding what constitutes fraud, especially if anything went wrong (e.g. they decide not to pay).

How did they do it? According to them, they simply filled out the application - in my name - and dad signed it, again, in my name.

Finally, no, I'm not gonna ship my parents off to the police for this, I love my parents and...ultimately... I'm just a little disappointed that they didn't consult me, a little concerned that they needed this money so badly and a little betrayed that they decided potentially smudging my name was worth €500. I'm not angry though. I'm not sure what this says about me.

Thanks for all the advice everybody, I'll be sure to let you know what my course of action is - gonna ponder over it tonight.

Savman

this all sounds too weird, perhaps the original poster should clarify how the parents got it and from what company. It may not be as malicious as we all think, especially considering it wasn't a bank who would make you prove your identity before giving you a penny.

To the OP, can you PM me your name address and pps number, I'm short a few quid

cuckoo

What would be the scenario if the roles were reversed? How would your parents react if you had forged one of their signatures and stolen their identity to get your hands on some money?

And...is this the only time they've done it - and will they do it again? For a 'boost' at easter, or valentine's day?

I may sound a little harsh - but i'm presuming you spent christmas with them and have spoken to them several times since the 21/12, and they let you find out about this loan by opening an envelope? Imho either your parents are very financially naive, or they haven't copped on that you're now an adult and that they don't get to make decisions for you anymore, or sign forms on your behalf (with whatever signature, your father admits to signing your name?!?!?).

Good luck sorting all this out with them.

rsynnott

Did they explain why at all? And what sort of financial institution is involved?

RainyDay

Money... wrote:

How did they do it? According to them, they simply filled out the application - in my name - and dad signed it, again, in my name.

It's not that simple - To open any account (including a loan account) with any regulated financial institution, they would need to show two forms of id, one photo-id and one utility bill or other bank statement. If they didn't do this, either the lender is breaking regulations, or (worse still) the lender is an unregulated door-to-door type money lender. Check the list of regulated lenders with IFSRA.

This is potentially a very serious problem. Why did they apply in your name? If you are a student, you probably don't have much of a credit record. Are their own credit records already ruined?

Xterminator

Money... wrote:

I'm worried that I would be, in effect, aiding what constitutes fraud, especially if anything went wrong (e.g. they decide not to pay).

Finally, no, I'm not gonna ship my parents off to the police for this, I love my parents and...ultimately... I'm just a little disappointed that they didn't consult me, a little concerned that they needed this money so badly and a little betrayed that they decided potentially smudging my name was worth €500.

Hi,

1st up.

As long as they pay the loan back, your credit status will actually be enhanced, not damaged. I am guessing that your parents credit rating is down the tubes along with their business.

I do think what they did was wrong, and judging from your calm enough reaction, you probabaly would have tried to help them out had they approached you.

However thats the crux. They were likelly too embarrased to approach you, and took this way to try to get over the christmas, without the 'shame' of admitting they were in a bad way.

I would feel a fair iut of pity for them, and i reccomend you just tell them your dissapointed they didnt tell you the problem , instead of going behind your back, and let that be the end of it.

Ask them to let you know if theres any difficulties meeting the repayments, before they're overdue, and let it go!

As somone rightly pointed out, if you added up the cost of bringing you up .. twould be a bargain for €500

X

Talliesin

Once they pay it back it will if anything be good for your credit rating (lenders like people that get into debt and then pay the loan back, that's how lenders make their money). Long term you need to explain that it's not acceptable to you so that it doesn't become a way they deal with the next slightly larger emergency, and then the next one, and then the next...

LundiMardi

i'm sorry, but if a business is going down the tubes you don't take a loan of only 500 euro...

Victor

OP, be conscious that your parents have given this company your details, if you apply for a loan in the future and the details don't match, there may be a problem.

LundiMardi wrote:

i'm sorry, but if a business is going down the tubes you don't take a loan of only 500 euro...

You mean "what else have they done?"?

Chucky the tree

LundiMardi wrote:

i'm sorry, but if a business is going down the tubes you don't take a loan of only 500 euro...

I dont think they took the loan out to save the business, but to try and give the family a decent christmas. I guess the money was for presents, food etc.

blorg

They are your parents and it's only €500. Talk to them and get it sorted out and paid back, no need to involve a solicitor etc (which is unlikely to cost less than the amount BTW.)

Esel

tuxy wrote:

thank you, this is one reason why you should not ask for advice on the net, people will give answers after only reading half the story.

tuxy wrote:

what could the bank possibly have to say on the matter? they dont give out free legal advice, you need a solicitor for that.

You have just proved your point!

Or maybe it's because anonymous posts are delayed for vetting? The eventual date/time/position of the anonymous post is confusing.

OP, you are a victim (albeit small-scale) of identity theft.

Once bitten, twice shy.

Fool me once, shame on you; fool me twice, shame on me. Etc. etc.

Miss Fluff

If paid back in full it will only improve your credit rating. I'd make them perfectly aware that they could be done for fraud should you choose to report them. It may be only €500 but forgery and gaining money by fraudulent means is a serious offence. Get them to clear the debt as soon as possible and treat you with a bit more respect in future. Unreal....

Savman

just get 'em to pay you back 8.9% interest;)

LegacyUser

Trouble is, this is your family. These are the people you'll still be messily loving 50 years from now. So while you have to stop them wrecking your life, you also have to avoid humiliating them and getting them in trouble.

I wish I knew an easy way out of it.

Maybe a start would be to get them George Hook's autobiography, where he talks about his life, which was an endless series of emergencies where he'd borrow from friends to save his business, etc, etc - until he got sense.

Maybe, too, you might go and talk to groups like Gamblers Anonymous, get a handle on how to sort this out more effectively and more long-term?

What a horrible dilemma - you're caught between love and morality, a nasty, pinching kind of a catch.