Latest news with #BankofMum
Daily Mail
a day ago
- Business
- Daily Mail
Barefoot Investor issues urgent warning over huge debt mistake: 'Financial jeopardy'
The Barefoot Investor has slammed a mother for continuously helping her son crawl out of debt and claimed she has robbed him of the chance to grow up. Distraught mum Helen wrote to Scott Pape claiming her son was a 'financial disaster'. She explained she has paid off countless loans of his to 'keep him afloat', but now a consultant has advised him to borrow even more money from his family to pay his debts so that he could 'start again'. 'For eight years, I've been his safety net,' Helen wrote in a column for the Daily Telegraph. 'I'm emotionally exhausted, financially drained, and now he's asking me to take out a loan in my name.' The mother, who is in her 60s, begged the Barefoot Investor for advice on how to help her son without sacrificing her own financial, emotional and mental health. 'I can't keep doing this. Please - how do I help him without sacrificing myself?' Helen wrote. In his reply, Mr Pape said she would not like his response - adding he did not even like his own response but was going to give it to her anyway. 'Helen, you are failing as a mum,' Mr Pape wrote. 'By continually bailing him out for the past eight years you've robbed him of the chance to grow up. Worse, you've put your own financial future in jeopardy doing it!' Mr Pape advised Helen to inform her son that the 'Bank of Mum' was officially closed and that she could not take out a loan or lend him any more money. He added she needed to stop rescuing him from his money troubles as it would be detrimental to his life and recommended he call free financial counsellors for help. 'No exceptions. 'No' is a complete sentence,' Mr Pape wrote. 'If you keep rescuing him, he'll end up being a 50 year old flailing around with his financial floaties on, waiting for his mummy to rescue him from the shallow end of life. 'Suggest that he call a free financial counsellor via the National Debt Helpline (1800 007 007), and that they'll help him sort out his mess. 'You're a kind woman, and a loving mum. But right now Helen, you're killing him with kindness.' Data has shown the Bank of Mum and Dad has seen a shift from helping loved ones purchase their first property to assisting with everyday living expenses amid the cost of living crisis. Global financial services company UBS surveyed 1,000 adults and found roughly half had received money from or had given money to family members in the past year. The data, released in January this year, revealed the most common form of financial aid - usually provided by parents - was helping with cash payments. The majority of funds given to adult children from their parents or their grandparents was used on everyday living expenses including insurance, petrol, bills and groceries. The second most common use of family-provided funds was for mortgage interest payments followed by helping a family member to purchase a home. Of those surveyed who were given financial assistance from a family member, 70 per cent said they received cash from their parents for housing and living expenses. Meanwhile, 15 per cent said they received money from their grandparents to help cover their bills. The research also found the total amount of financial gifts had increased with most exceeding $100,000, while some were even above $200,000.
Telegraph
12-04-2025
- Business
- Telegraph
‘I sent my son a £200k house deposit, but Santander took £5k'
Has a company treated you unfairly? Our Consumer Champion is available to help. For how to contact her click here. Dear Katie, On March 3, I visited my local Santander branch and asked for £200,000 to be sent from my account to my son's GBP account in Zurich, Switzerland. I paid the £25 fee and was told that the funds would land overnight. However, this did not happen. I made multiple attempts to get Santander to sort it out, and then when the funds did finally arrive, they were presented in Swiss Francs, having suffered significant exchange rate and handling fees. On March 6, I complained to Santander that the money had been sent via the wrong route (the one that triggers a currency conversion rather than a straight transfer, which is far cheaper to do). I was told that the complaints team would be in touch within three to five working days, as this had been flagged as urgent. However, no one called. It was only on Friday, March 14 when I phoned repeatedly that I was able to make contact with someone. The lady promised 'prompt action', but another three days have now passed – nothing has been done and no one has been in touch. If my son accepts the funds into his account, he will lose another £4,700.30 due to conversion rates and fees. My son needs this money soon to help him purchase a home in Zurich. The funds are an advance from the Bank of Mum on his inheritance as – while I really do not want to play the 'poor me' point – I deal with advanced, incurable cancer. – PE, via email Dear PE, Your receipt shows the transaction was made in Swiss Francs, which is in line with Santander's usual policy. When you visited the Bristol branch for the second time, two days later, you advised that your son had not received the expected funds, as the receiving bank could not deposit the Swiss Francs into his account. At this point, Santander became aware that you initially intended to send the funds in pounds. In order for the money to be applied to your son's account, it was converted from Swiss Francs to pounds, with the currency conversion rate reducing the amount of pounds he received by £4,702.30. Following my involvement, Santander has now arranged to send this amount back to you, as well as £300 to acknowledge that it could have resolved this issue sooner. It has also reimbursed your original £25 transaction fee. I hope your son is able to now proceed with his house purchase, and I wish you all the very best with your cancer management. A Santander spokesman said: 'At the time, Mrs E made her international transfer it was not clear that she wanted the payment to be made in GBP. Mrs E clarified this two days after the transfer was made, when it became clear that, due to currency conversion rates, her son would receive less than she intended. 'We're sorry we did not act sooner to review this once she raised it with us, and we can confirm that we have now arranged for the shortfall to be sent to her son, as well as offering an additional £300 for the delay in reviewing her complaint, alongside a further £25 to reimburse the transaction fees.'
