Latest news with #SarahDavidson
Metro
4 days ago
- Business
- Metro
I loaned my parents a few hundred quid — then they stole thousands
'I know people will judge my mum and dad for what I'm about to tell you, or call me stupid for letting it happen – but we all feel terrible already and really just need advice.' Financially responsible Lily, 25, has just found out her credit rate has plummeted. The reason? Her parents have technically 'stolen' from her, taking out a spiralling loan in her name. In the latest instalment of Metro's Money Problem, personal finance journalist and consumer champion Sarah Davidson gives some no-nonsense advice. The problem… Lily says: 'About two years ago, my parents' rent went up at the same time as their car broke down, and they needed some money but had been refused credit. I was at uni and only working part-time, which barely covered my own rent and living expenses. I did have a good credit score though, and when I asked how I could help out, my mum suggested I could take out a payday loan of a few hundred pounds. 'I'm of the opinion that you do what you can for your family, so I agreed – and as promised, they paid it back on time. The issue is that they then kept borrowing small amounts each month (which the company seemed to allow without any additional checks). 'The high interest rate got them further and further into debt and it snowballed into the thousands, which they couldn't afford so ended up defaulting on. 'I didn't find out until I checked my credit report recently, as I've now graduated and started saving to buy a house. Even though I'm angry at them (mostly for not telling me) I could see how ashamed my mum and dad were about what they did. Up Next 'Is there any way I can fix this without getting them into trouble?' The advice… Oh Lily. The road to hell is paved with good intentions. I don't think you're stupid for 'letting' this happen. It's a bitter pill to swallow, but in the eyes of the law, your parents stole from you. That's a criminal offence and you're a victim. If you're not okay with that, you need to report it to the police. If you are okay with that, then covering the cost of that theft is on you. It's also up to you to work out how to deal with what your mum and dad did. If you had lost money as a result of another person taking a loan out in your name without your knowledge, you would normally take the following steps: Report it to Action Fraud, the police department that deals with financial crimes. You can do this online, by calling 101, or by calling their fraud or cybercrime specialists on 0300 123 2040. When you submit a report you will receive a police crime reference number. Report the incident to the payday lender, including the amounts and dates of the additional advances taken without your knowledge and your crime reference number. The company will either agree to reimburse you for the money taken, agree to a part payment or refuse to cover your losses. If you're unhappy with this outcome, you can make a complaint to the company. If you're still unhappy, you can wait eight weeks (usually) and then make a further complaint to the Financial Ombudsman Service. However, your question is whether there is any way you can 'fix this without getting them into trouble', which I'm guessing means getting your money back and/or getting this black mark struck from your credit record. Sorry, Lily. No can do. The bottom line is that unless you report the crime to the police, you are accepting that 'you' took the loans and failed to repay them. That gives you no recourse to get your money back and no grounds to challenge the damage it's done to your credit score. If you don't want to dob your mum and dad in, then you need to forgive the past and focus on mending the future. To have any hope of that happening, you need to be comfortable accepting that – in the eyes of the law and of the lender – this is your problem to fix. You haven't said whether you've had any letters or contact about the default, other than that you saw it on your credit file. You need to talk to your parents to find out why not – have they changed the contact details on your account with the payday lender? Have they had emails, calls or letters? Once you've got all the facts and paperwork from your parents, here's what I'd suggest: Contact the payday lender to find out how much debt you owe and ask them if it's possible to agree a repayment plan with smaller monthly amounts that you can afford. Just be aware, they don't have to agree to this. Also make sure they have your correct contact details. If you have savings (you mention you're saving for a house), you could use them to clear the debt and then start rebuilding your credit score. Be realistic: the first will be a labour of love and the second will take time. Don't be tempted to use a credit card or another expensive loan to pay off this debt. However, if you can afford to take a fixed term loan and pay it off monthly at a lower interest rate, this could keep interest costs down. There are lenders that offer responsible loans for this type of situation – try searching credit unions and community finance in your area. Campaign group Fair4all Finance invests money into responsible lenders across the UK – you can find a list on their website. Your payday lender may already have referred you to a debt collection agency. If this is the case, the lender can give you their details – or your parents might have these already. Contact the debt collector to ask for your repayment options. Some will allow you to make smaller payments you can afford over a longer time. Others won't. Whatever you do, do not ignore letters. You could end up facing court action, which will make everything much worse. If you can't afford to repay the debt, contact one of the organisations listed on the Government's website for free and confidential help. They will be able to guide you on your best options and are not financially incentivised to advise you take out expensive debt relief orders or declare bankruptcy. Try to avoid those routes if you can. Finally, you and your parents need to make this right between you or it will fester. Where there is money involved, feelings can become bitter over time. I'd suggest you sit down with them over a cup of tea at a pre-agreed time to discuss it. Have all the paperwork in front of you and let them know beforehand that you'd like to consider how they could help you with the repayments so they aren't blindsided. You might decide to write off some of what they borrowed in your name – it sounds like you're sympathetic to their financial situation and want to help if you can. I wouldn't recommend letting them off scot-free though. That's not fair on you and, frankly, if there are no consequences for them, what's to stop it happening again? After all, they seem to have been using your credit pretty freely to pay for more than just their rent and fixing the car. Use the meeting to work out what you and your parents can realistically afford each month. Add up all their income and subtract all their bills, allowing for some extra cash each month to cover unforeseen expenses. You should do the same. Anything left should go towards repaying the debt. Ask your parents to set up a standing order with their bank to transfer their share to you on a fixed date every month. Once that's done, contact the lender or debt collection agency and – perhaps with the help of one of the charities above – agree a repayment plan that you can afford to maintain until the loan is paid off. It might be worth agreeing an amount you can afford even if your parents stop contributing. I'm sure you don't need telling twice that, even with the best of intentions, things can go awry. Got a Money Problem of your own? Have you been ripped off by a romance scammer? Fighting with family or friends over who should pay for what? Struggling to get by despite a decent income? Or simply want to vent about how you've been treated by a major company? If you've got a money problem you'd like Sarah to look into, fill in this form or email providing as much detail about your situation as possible. No issue is too big or small, and all submissions will be treated with the strictest confidence. Sarah Davidson is an award-winning financial editor and head of research at WPB Got a money worry or dilemma? Email
Metro
4 days ago
- Business
- Metro
My parents took out loans in my name and ruined my credit
Welcome to the latest instalment of Metro's Money Problem, from award-winning personal finance journalist and consumer champion, Sarah Davidson. Every Monday, she investigates a reader's money dilemma, offering a no-nonsense perspective on what's gone wrong along with guidance and advocacy to help make things right. This week, we hear from 25-year-old Lily, who's torn between family and her financial future. After her parents borrowed money under her name and then defaulted on the loans, Lily's credit rating has plummeted. And even though this could stop her getting a mortgage, she just can't bring herself to report them for fraud. Have you been ripped off by a romance scammer? Fighting with family or friends over who should pay for what? Struggling to get by despite a decent income? Or simply want to vent about how you've been treated by a major company? If you've got a money problem you'd like Sarah to look into, fill in this form or email providing as much detail about your situation as possible. No issue is too big or small, and all submissions will be treated with the strictest confidence. Before I start, I know people will judge my mum and dad for what I'm about to tell you – or call me stupid for letting it happen – but we all feel terrible already and really just need advice. About two years ago, my parents' rent went up at the same time as their car broke down, and they needed some money but had been refused credit. I was at uni and only working part-time, which barely covered my own rent and living expenses. I did have a good credit score though, and when I asked how I could help out, my mum suggested I could take out a payday loan of a few hundred pounds. I'm of the opinion that you do what you can for your family, so I agreed – and as promised, they paid it back on time. The issue is that they then kept borrowing small amounts each month (which the company seemed to allow without any additional checks). The high interest rate got them further and further into debt and it snowballed into the thousands, which they couldn't afford so ended up defaulting on. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video I didn't find out until I checked my credit report recently, as I've now graduated and started saving to buy a house. Even though I'm angry at them (mostly for not telling me) I could see how ashamed my mum and dad were about what they did. Is there any way I can fix this without getting them into trouble? Oh Lily. The road to hell is paved with good intentions. I don't think you're stupid for 'letting' this happen. It's a bitter pill to swallow, but in the eyes of the law, your parents stole from you. That's a criminal offence and you're a victim. If you're not okay with that, you need to report it to the police. If you are okay with that, then covering the cost of that theft is on you. It's also up to you to work out how to deal with what your mum and dad did. If you had lost money as a result of another person taking a loan out in your name without your knowledge, you would normally take the following steps: Report it to Action Fraud, the police department that deals with financial crimes. You can do this online, by calling 101, or by calling their fraud or cybercrime specialists on 0300 123 2040. When you submit a report you will receive a police crime reference number. Report the incident to the payday lender, including the amounts and dates of the additional advances taken without your knowledge and your crime reference number. The company will either agree to reimburse you for the money taken, agree to a part payment or refuse to cover your losses. If you're unhappy with this outcome, you can make a complaint to the company. If you're still unhappy, you can wait eight weeks (usually) and then make a further complaint to the Financial Ombudsman Service. However, your question is whether there is any way you can 'fix this without getting them into trouble', which I'm guessing means getting your money back and/or getting this black mark struck from your credit record. Sorry, Lily. No can do. The bottom line is that unless you report the crime to the police, you are accepting that 'you' took the loans and failed to repay them. That gives you no recourse to get your money back and no grounds to challenge the damage it's done to your credit score. If you don't want to dob your mum and dad in, then you need to forgive the past and focus on mending the future. To have any hope of that happening, you need to be comfortable accepting that – in the eyes of the law and of the lender – this is your problem to fix. You haven't said whether you've had any letters or contact about the default, other than that you saw it on your credit file. You need to talk to your parents to find out why not – have they changed the contact details on your account with the payday lender? Have they had emails, calls or letters? Once you've got all the facts and paperwork from your parents, here's what I'd suggest: Contact the payday lender to find out how much debt you owe and ask them if it's possible to agree a repayment plan with smaller monthly amounts that you can afford. Just be aware, they don't have to agree to this. Also make sure they have your correct contact details. If you have savings (you mention you're saving for a house), you could use them to clear the debt and then start rebuilding your credit score. Be realistic: the first will be a labour of love and the second will take time. Don't be tempted to use a credit card or another expensive loan to pay off this debt. However, if you can afford to take a fixed term loan and pay it off monthly at a lower interest rate, this could keep interest costs down. There are lenders that offer responsible loans for this type of situation – try searching credit unions and community finance in your area. Campaign group Fair4all Finance invests money into responsible lenders across the UK – you can find a list on their website. Your payday lender may already have referred you to a debt collection agency. If this is the case, the lender can give you their details – or your parents might have these already. Contact the debt collector to ask for your repayment options. Some will allow you to make smaller payments you can afford over a longer time. Others won't. Whatever you do, do not ignore letters. You could end up facing court action, which will make everything much worse. ignore letters. You could end up facing court action, which will make everything much worse. If you can't afford to repay the debt, contact one of the organisations listed on the Government's website for free and confidential help. They will be able to guide you on your best options and are not financially incentivised to advise you take out expensive debt relief orders or declare bankruptcy. Try to avoid those routes if you can. Finally, you and your parents need to make this right between you or it will fester. Where there is money involved, feelings can become bitter over time. I'd suggest you sit down with them over a cup of tea at a pre-agreed time to discuss it. Have all the paperwork in front of you and let them know beforehand that you'd like to consider how they could help you with the repayments so they aren't blindsided. You might decide to write off some of what they borrowed in your name – it sounds like you're sympathetic to their financial situation and want to help if you can. I wouldn't recommend letting them off scot-free though. That's not fair on you and, frankly, if there are no consequences for them, what's to stop it happening again? After all, they seem to have been using your credit pretty freely to pay for more than just their rent and fixing the car. More Trending Use the meeting to work out what you and your parents can realistically afford each month. Add up all their income and subtract all their bills, allowing for some extra cash each month to cover unforeseen expenses. You should do the same. Anything left should go towards repaying the debt. Ask your parents to set up a standing order with their bank to transfer their share to you on a fixed date every month. Once that's done, contact the lender or debt collection agency and – perhaps with the help of one of the charities above – agree a repayment plan that you can afford to maintain until the loan is paid off. It might be worth agreeing an amount you can afford even if your parents stop contributing. I'm sure you don't need telling twice that, even with the best of intentions, things can go awry. Sarah Davidson is an award-winning financial editor and head of research at WPB View More » Got a money worry or dilemma? Email MORE: I said goodbye to my stillborn baby on Christmas day MORE: My dying mother revealed a life-changing secret — I wish she'd kept it to herself MORE: The Doctor Who finale will 'shock and terrify' — here's what parents need to know
Metro
19-05-2025
- Business
- Metro
Phone thieves stole £10,000 from my savings but the bank says it's my fault
James's banking app was open when his phone was snatched (Picture: Getty/Metro) Listen to article Listen to article Your browser does not support the audio element. Welcome to the latest instalment of Metro's Money Problem, from award-winning personal finance journalist and consumer champion, Sarah Davidson. Every Monday, she investigates a reader's money dilemma, offering a no-nonsense perspective on what's gone wrong along with guidance and advocacy to help make things right. This week, we hear from James, a 35-year-old Londoner who recently had his phone snatched – only the thieves took things one step further, draining his online accounts shortly after. When he tried to claim the stolen cash back, James's bank refused, leaving him £10,000 down and extremely frustrated. Submit your Metro Money Problem Have you been ripped off by a romance scammer? Fighting with family or friends over who should pay for what? Struggling to get by despite a decent income? Or simply want to vent about how you've been treated by a major company? If you've got a money problem you'd like Sarah to look into, fill in this form or email providing as much detail about your situation as possible. No issue is too big or small, and all submissions will be treated with the strictest confidence. The problem… On a night out a few months back, I was checking my banking app when two guys on a moped grabbed my phone and drove away. It all happened in a matter of seconds, and by the time I rushed home to report it, they'd stolen £10,000 out of my wedding fund with a cash transfer service. I did all the things you're supposed to: cancelling my cards, changing my passwords and contacting the bank with my crime number. The police were sympathetic but said there wasn't much they could do, so I was relying on the unauthorised payment claim to get the money back. However, I've just been told my refund has been refused because of 'gross negligence' on my part. I feel like I'm being blamed when I was the victim of a crime – do I have grounds to appeal the decision? The advice… First of all, I am so sorry this happened to you. Being robbed, assaulted or made the victim of any crime is abhorrent, and leaves lasting emotional damage that can still affect people years later. In your case you lost not just your phone – which likely cost upwards of £700 – you also saw £10,000 of savings drained from your bank account. That's a huge chunk of money, and made worse by the fact it was destined to pay for your wedding. Sadly, you are far from alone. In September last year the Home Office published figures showing that 78,000 people had their phones or bags snatched out of their hands in the previous 12 months – equivalent to more than 200 snatch thefts every day across England and Wales. Far, far too often victims are blamed for their 'stupidity' in falling for online or telephone scams that result in them authorising a payment from their bank account to a fraudster. To hear that this is happening when a person is physically subjected to a robbery and then loses money as the result of an unauthorised payment is, frankly, sickening. This said, there are a few things to say here – and some we can learn. The bank claim he was 'grossly negligent' (Picture: Getty Images) First, you did all the right things as you say. Cancelling cards, changing passwords and reporting the theft to the police and your bank as soon as you were able was a sterling effort. Well done. Check your home insurance policy and whether your bank account has mobile phone insurance covered. With the crime number, you should be able to claim back the value of the stolen phone after paying an excess. The second thing to say is going to sound less palatable. Unfortunately, your £10,000 is barely a drop in the ocean of money stolen by criminals each year. The latest fraud report from UK Finance showed an eye-watering £1.17 billion was stolen by fraudsters in 2023. Within that total, £709million was unauthorised payment fraud affecting almost three million victims. You're one of them. And that's what you're up against in your fight to gain recompense from your bank. If they have reasonable grounds to refuse to reimburse you, they'll do it. They have a duty to their shareholders after all. The third is to understand what your rights and protections are. Your phone was stolen from you while your banking app was open. As such, you did not authorise the transfer of £10,000 from your account but the payment itself was authorised from within your banking app. Your case falls under rules that state your bank can refuse to reimburse you if you fail to 'take all reasonable steps to keep safe personalised security credentials relating to a payment instrument or an account information service'. In order for them to refuse to cover your loss, the bank must prove that you 'acted intentionally or with gross negligence, by not keeping the payment instrument safe, adhering to the terms governing its use, or failing to report its loss theft or misappropriation'. Here's where the thump in the chest comes I'm afraid: that payment instrument is your mobile phone. Now, it's completely unreasonable to expect anyone to prevent themselves from being targeted by thieves as you were. But, even though it leaves a sour taste in the mouth, it is reasonable to expect you to ensure you're in a safe environment when you're logging into your banking app. You say two guys on a moped grabbed your phone and drove away. That suggests you're standing outside on a pavement, near the kerb or in the road. You won't be the only one who's done it but, in hindsight, I'm sure you can see that was probably not a decision you'd make again. Though you did not want to disclose the name of your bank, meaning I cannot check this with them, I would strongly suspect this is where your claim has fallen over. Tips to stay safe Most banking apps should have additional security layers to prevent unauthorised transfers, even in the case that your phone, laptop or tablet is stolen while the app is open. Check what two-factor authentication steps are available and enable them. Set up remote locking and wiping facilities on your phone. It will mean getting to another phone or laptop, but it is nonetheless worth doing. Enable your phone's theft protections – some phones can detect if they've been snatched and will lock automatically. Ensure all your phone's security features are enabled, such as biometrics and screen lock after a very short inactivity period. Thieves try to steal phones while they're unlocked as that gives them full access. Typically, they'll switch it to airplane mode so you can't use the remote locking feature. To jump this, use your phone's shortcuts app to create an automation that locks your screen automatically when your phone is turned onto airplane mode. Only ever open banking apps in a safe and secure environment, never in the open, by a road or in a public or crowded space. If you are a victim of robbery, report it to the police or contact Crimestoppers. The following organisations may also be able to help. Action Fraud Victim Support Citizen's Advice To go back to your question: you feel like you're being blamed when you were the victim of a crime, and want know if you have grounds to appeal the decision? To answer the first part: yes. You are being blamed when you were the victim of a crime. It is indisputably not fair. To answer the second part: no. You are governed by the law that underpins your contract with your bank and you did something innocent but silly. You do have the right to complain though, and the steps to do so are below. I'd also take from this absolutely gutting, galling situation a cautionary lesson. Next time, do everything you can to keep your money safe before something goes wrong. Final thing for me to say. I'm sorry. Genuinely. It makes me feel ill to think you've lost your wedding savings in such an unfair and despicable situation. But, as my mum has always said, life isn't fair my girl. Get used to it. How to complain if you're unhappy with your bank If you feel like you've been treated unfairly by a financial business, or if you're unhappy with a financial service, you have the right to complain. Follow these steps from the Financial Conduct Authority. Contact the firm The firms we authorise must have a process in place for resolving complaints. So if you're unhappy with a financial product or service, get in touch with the firm. Tell them what happened and when, and ask them to put things right. Make a record of how and when you got in touch. You normally need to complain within six years of the problem happening or, if later, within three years of you becoming aware that you had cause to complain. You can check the Financial Services Register to make sure a firm is authorised. You get a response Unless they resolve your complaint within three business days, all firms must reply in writing to let you know they've received your complaint. In general, firms must get back to you in writing to let you know the outcome of your complaint within eight weeks. They must tell you whether your complaint has been successful or not, or why they need more time to investigate. Payment service providers and e-money issuers must normally respond to certain complaints within 15 business days. If they can't provide a final response, they must explain the reasons for the delay. You must then get a final response within 35 business days from the day when you first made the complaint. Contact the Financial Ombudsman Service If you're unhappy with the firm's decision, or you don't hear from them in the right timeframe, the Financial Ombudsman Service may be able to help. Find out if they can, by using their online complaint checker. The Financial Ombudsman is a free, independent service for settling disputes between financial services firms and their customers. It can deal with complaints about a wide range of issues, from pet insurance to stocks and shares. Once you've contacted them, the team at the Financial Ombudsman will talk to the firm and then decide whether to uphold your complaint. If they decide in your favour, and you agree to the terms, the firm must comply with the decision. If the firm does not comply with the decision, you should contact the Financial Ombudsman. It's important you contact the Financial Ombudsman within six months of receiving a final response from the firm, or they may not be able to help. Sarah Davidson is an award-winning financial editor and head of research at WPB Got a money worry or dilemma? Email Arrow MORE: The £1 pension trick that could save you losing thousands Arrow MORE: Pensions: How much you should save a month and when to start Arrow MORE: Can't get through to your bank? 4 ways to demand the service you deserve
Metro
12-05-2025
- Business
- Metro
Mum is moving in with me — can I make her pay my mortgage?
Welcome to Metro's very first edition of The Money Problem, from award-winning personal finance journalist and consumer champion, Sarah Davidson. Every Monday, she'll investigate a reader's money dilemma, offering a no-nonsense perspective on what's gone wrong along with guidance and advocacy to help make things right. This week, we hear from 31-year-old Esme, whose newly-divorced mum needs somewhere to stay. Although Esme and her boyfriend have offered up the spare room in their Edinburgh flat, family think she's out of line for asking their mum to chip in for their mortgage. Have you been ripped off by a romance scammer? Fighting with family or friends over who should pay for what? Struggling to get by despite a decent income? Or simply want to vent about how you've been treated by a major company? If you've got a money problem you'd like Sarah to look into, fill in this form or email providing as much detail about your situation as possible. No issue is too big or small, and all submissions will be treated with the strictest confidence. My parents recently got divorced and while my dad has moved into a new place, my mum is struggling to find somewhere. She works as a receptionist at a dentist, but with rent prices through the roof near us, her salary is barely enough for a tiny bedsit – and there's no way she can flatshare at nearly 60. After chatting with my boyfriend, we've agreed to let her live with us – at least while she's getting back on her feet. We have a big spare room with an en-suite, so there's no issue with space. Her living here will add to our bills though, and we want to ensure she covers these extra costs (at the very least). Would it be fair to set her 'rent' at half our monthly mortgage payment, or is there a better way to calculate what she contributes? In my opinion we're doing her a favour and she's getting a good deal compared to what she'd pay on the open market, but my siblings are calling me a money-grabber. Good question. On the one hand, you're helping your mum out in a tricky situation, but it is going to create additional costs for you and your boyfriend. Why then are your siblings accusing you of being money-grabbing? I think there are two questions you need to answer here. The first is why you're asking your mum move in with you. The second is what she might reasonably contribute financially. On the first question, you clearly don't want your mum to have to live in a bedsit or to be forced to get a room in a shared house. That tells me you care about her dignity, comfort and that she has family support after her marriage has ended. On the second, should you be charging her rent and if so how much? You say that, in your opinion, you're doing her a favour and she would be getting a good deal compared to renting on her own. This may be true if you compare those options purely in financial terms. But this decision isn't just financial. To be blunt, asking her to pay half your mortgage is unreasonable. There are going to be three of you in the house after all and whether or not she moves in with you, you and your boyfriend are going to have to cover your mortgage. It sounds like you're confusing helping your mum because you love her with the opportunity to make some cash out of your big spare room with its en-suite. It may be that your boyfriend, whose home it is too, wants to see some benefit in return for giving up your privacy as a couple. After all, she is not his mum. But it would be far fairer to ask her to pay the difference between your household bills now and after she moves in. I'd also encourage you to think about what your priority is here. You say this is a temporary situation while she's getting back on her feet. What's the best way to help her do that? Is it taking a chunk of her income every month so you can pay off your own mortgage sooner? Or, is it to give her time to save enough money to get her own place to live? The more rent you charge her, the longer it's going to take her to regain her independence. You might also want to consider how much money she and your dad have spent on your upbringing over the years. I think you, your boyfriend and your mum need to have a frank conversation not just about her moving in but also what her plan is longer term. The chances are she wants this arrangement to be temporary too, so then the question becomes how to make that happen. One final thing I'd caution you on. Mixing family and money can be absolutely toxic for relationships – even if you think everyone's on the same page at the start. More Trending She's your mum. She's in a horrible position. Her entire life is changing following a divorce. You're thinking with your head here. Perhaps it's time to have a heart. Sarah Davidson is an award-winning financial editor and head of research at WPB . Got a money problem that needs solving? Submit using our online form or send via email to Do you have a story to share? Get in touch by emailing MetroLifestyleTeam@ View More » MORE: I won the £4,500,000 Omaze London house — goodbye, studio flat MORE: This is what happens to your body when you have babies in quick succession MORE: I'm still breastfeeding my nearly 4-year-old daughter
