| T O P I C R E V I E W |
| vacs |
Posted - 08 October 2008 : 19:32:03
ANYONE KNOW IF YOU CAN GET DONE FOR FRAUD IF YOU DONT EVEN MAKE THE 1ST LOAN PAYMENT AND GO BR BEFORE 1ST PAYMENT DATE AS WELCOME FINANCE SAY THEY HAVE A GOOD FRAUD CASE AS I TOOK OUT A LOAN KNOWING FULL WELL I COULD NOT PAY AND GOING BANKRUPT THEY ALSO SAID IT IS A PRISON SENTANCE FOR THIS KIND OF FRAUD. |
| 15 L A T E S T R E P L I E S (Newest First) |
| pix1 |
Posted - 10 October 2008 : 14:10:12
Critical questions for VACS;
1) What is the amount of the loan?
2) When was it taken out?
3) Is there any money left?
4) Was the correct information given on the loan application form?
Even if it could be proved that you deliberately took out the loan with no intention of repaying it and then going BR to write it off I very much doubt you would go to prison particularly as (I hope!) it would be a first offence. Prison are chock a block with murderers doing bits of life sentences and burglars who are not on community orders. There won't be space for you. People like Gerald Ronson get sent to open prisons for multi million pound frauds so I think it unlikely you would be sent to prison. Also, the police will not want to go round arresting people for loan fraud. They have bigger fish to fry.
No, you have done nothing wrong and make sure no one gets you to admit any wrongdoing.
There may be a danger of a BRO, though. The OR might ask you to account for the money from the loan. If it has gone on things deemed essentail items of expenditure it will look better than if it has gone on non essential items.
I'd like to say send the loan company a token payment but you can't as the OR is now dealing with your finances and any payment to one creditor would be deeemed preferential.
Best of luck. We're all sweating it out here on this forum! |
| JulianDonnelly |
Posted - 09 October 2008 : 13:26:39
hi Vacs,
If you've already gone BR, it is illegal to pay the creditors directly as all payments have to go through the OR/trustee. I'm afraid you're just going to have to play the waiting game nowe and see how things pan out.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| vacs |
Posted - 09 October 2008 : 13:16:32
SO WHAT DO YOU THINK I SHOULD DO AS I HAVE ALREADY GONR BR SHOULD I GET MY HUSBAND TO PAY A COUPLE OF INSTALLMENTS FOR ME OR WILL I BE SEEN TO PAY OFF CERTAIN CREDITORS AND STILL GET INTO TROUBLE |
| Reviva UK |
Posted - 09 October 2008 : 09:59:36
Maxing out the credit cards before going Br is a big no no.#
The Official Receiver will review one's conduct during the period prior to br to get an understanding of what the money was spent on.
If the money has been used to repay other debts ( balance transfers etc ) then that is understandable HOWEVER if someone has gone on a spending spree then they are likely to qualify for a BRU because they "took out credit with the knowledge that they would be unable to repay the debt".
in some circumstances I have seen the OR ask for products recently purchased - such as TV's expensive computers etc etc .
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
| Needafriend |
Posted - 09 October 2008 : 09:54:01
Hi Veryworried and Vacs
I certainly hope that you can get this sorted out for you both. Its a worrying and stressful time at best without this hanging over your heads.
Let us know how things pan out and keep posting, we are here when you need us.
All the best, your virtual friend
Jo x
Your Mother Hen :-)
Please visit my blog for info on how I got here and other information to guide you through from my experience called:
"Mother Hen's New Debt Free Life with Links and added info on Bankruptcy!" available to view at:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
| Almost there |
Posted - 09 October 2008 : 09:36:17
What about people who max their credit cards before boing BR, and I know many do, is that considered fraud? I had various credit cards with plenty of leeway on them, but never took them to their limit, I did read on here somewhere that alot of people do this before going BR. |
| Reviva UK |
Posted - 09 October 2008 : 09:18:29
Always better to be safe rather than sorry.
You would also do well to speak to a number of companies that offer debt solutions - and diarise the calls - so that you can clearly identify on the SOA that you have done everythig possible to check out ALL the alternatives.
This would show that you haven't just rushed into Br.
Rushing is never a good thing.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
| Almost there |
Posted - 09 October 2008 : 09:04:36
Presumably the same would apply in my case then, mine being a Halifax loan which I took out in August with a 3 month repayment holiday, 1st payment is going out on the 1st Nov, so really you would definetly advise me to wait until Jan before going BR, even though I will be running up an overdraft. If I make the 3 payments, will that mean that it definetly won't be regarded as fraud. Sandie |
| John |
Posted - 09 October 2008 : 08:16:14
Hi
as noted in Winchester78's post.
If the lender reports your action to the police you may well be arrested I'm afraid. To take out credit with no intention or means to repay is fraud and therefore a criminal act. The repercussions will entirely depend on how much and what the money was used for. In the case of a payday loan I'm guessing the amount was comparitively low and it's entirely possible the lender has dropped the action. If they haven't then I'm sure you will be hearing more as fraud is fraud irrespective of the amount.
The payday loan company have a decision to make as all of their customers are in difficulty and if word gets out that they prosecute everyone that defaults they could lose their business overnight.
With a high street lender the situation is entirely different. The fraud aspect still applies and the lender will not have the same concerns whether or not to prosecute. Your saving grace is that you have not spent the money on yourself as if this was the case the consequence could well be a custodial sentence.
As far as the OR is concerned, it is not for them to alert police and prosecute as you don't owe the OR anything. I expect they may contact the particular lender on the subject who would then need to make their own decision in respect of possible prosecution.
The point being that not having paid a minimum 2 or 3 payments to any such borrowings does constitute fraud.What happens is in the laps of the lender and the court as the police have little choice but to pursue the matter once it is reported.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| Needafriend |
Posted - 08 October 2008 : 21:03:51
Hi Vacs
I dont know what to say really other than really it will be down to the OR.
I dont know if you can be done for fraud, maybe one of the others may have a better idea.
Im sorry mate, i hope you get it sorted.
LOL
Jo x
Your Mother Hen :-)
Please visit my blog for info on how I got here and other information to guide you through from my experience called:
"Mother Hen's New Debt Free Life with Links and added info on Bankruptcy!" available to view at:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
| Almost there |
Posted - 08 October 2008 : 20:48:19
This is just the sort of thing that has been bugging me, I took out a loan with the Halifax and I used it to pay my credit card and overdraft which were also with the Halifax, the reason I did it was to save on some of the interest which is lower on the loan then on the credit card and overdraft, but it looks like that was a big mistake to make. I make my first payment in Nov, at the time of taking out the loan BR had crossed my mind but I didn't take out the loan with the intention of never paying any of it back it was simply for the reasons given above, and the money that I borrowed has gone back in the same pot, if you see what I mean, now I realise I cannot afford it, but Halifax phoned me offering me the loan and it seemed like a good idea at the time. However, I have been told that it would be classed as fraud if I go BR now without making any payments, but what do I do, continue running up another overdraft? What would the implications be? prison, will I be handcufted and sent down for the next few years or will I get a BRU, nobody will tell me. Thing is, I have spoken to people who have been BR in the past, one of them ran up £70,000 of debts on drugs and fast women, he went BR in 2000 and didn't even get a BRO, he in fact went BR again in 2007 and is now discharged with a full bank account, it just doesn't seem fair, I also know someone else who took their family of 6 people to Spain on a luxury holiday and then went BR on their return and they have got away with it.
Sorry, I am letting off steam, feel better now. Sorry for hijacking this thread also. Thanks for listening Sandie xx |
| vacs |
Posted - 08 October 2008 : 20:28:29
hope your right I am sick with worry quite confident about it all at first the the OR rings about my appointment ( i have got to go and have a face to face interveiw as i was a ltd company)well i think thats the reason then after the phone call, you start questioning yourself what if!!!!! The money was spent on an overdraft |
| vacs |
Posted - 08 October 2008 : 20:25:33
SORRY DID'T EXPLAIN TOO WELL, ALREADY GONE BR. AND MY OR INTERVEIW IS 20TH OCTOBER, REALLY WORRIED ABOUT WHAY THEY WILL SAY, ABOUT THIS, BUT AT TIME OF TAKING THIS LOAN OUT, I HAD NO IDEA THAT I WAS ACUALLY GOING TO DO IT. IT WAS THE FINAL STRAW AS MY HUSBAND FOUND OUT ABOUT MY DEBTS AS HE OPENED ONE OF MY LETTERS THAT WAS FROM WELCOME FINANCE, AND THATS WHEN IT ALL KICKED OFF AND I THEN HAD NO CHOICE BUT TO GO BR THERE AND THEN. YOU KNOW WHAT ITS LIKE YOU ALL SORT OF HOPE YOU WIN THE LOTTERY OR A DISTANT AUNT YOU NEVER KNEW ABOUT COMES FROM HEAVEN BUT THEY NEVER DO. |
| WINCHESTER78 |
Posted - 08 October 2008 : 20:16:38
Hi Vacs Hope your well?
I was in the same sitution as you I had a payday loan which I didnt repay due to my BR.I was arrested after the company alledged fraud.After I week no further action was taken.
My thoughts in your case are;
o Nobody uses Welcome Finance out of choice.There the place we go when noone else will loan to us.
o They lent to you after doing all there checks.As long as you didnt lie on the application form there is no fraud there.
o If you did plan on BR before getting the loan with them then YES , ur actions could be questioned.
oWhat did you spend the loan on?
o My gut feeling after dealing with Welcome is that you spoke to a pissed off salesperson which wont be getting his/her commission! |
| Needafriend |
Posted - 08 October 2008 : 20:16:30
HI Vacs
Im not sure, what does the contract say. I know the OR def will not be impressed with that as we try to say to people to try and make 3 payments to the loans or cards before BR, otherwise your on the right track for a BRU and that could now be extended if like welcome have said you took a loan knowing you were going BR so had no real means to pay it.
I hope you get it sorted out.
When is it you go BR.
Jo x
Your Mother Hen :-)
Please visit my blog for info on how I got here and other information to guide you through from my experience called:
"Mother Hen's New Debt Free Life with Links and added info on Bankruptcy!" available to view at:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
