Bankcrupt Friend Has Just Got A £75,000 Loan.

[Mick Dundee]

Last night, I met up with a friend who left Uni 2001 with loads of debts and not just student loans. He had overdrafts with 2 banks, credit cards maxed out and had a car on finance that was subsequently repossesed.

Not deterred he took out even more debts for holidays (snow boarder) and got another car on finance. In 2004, he declared himself bankcrupt and went through the proecdure of the being bankcrupt. He couldnt even get a bank account without telling the bank he was bankcrupt and so they wouldnt open an account for him.

Eventually he got his salary paid onto a prepaid card and his bankcruptcy came to end last year. Officially discharged.

He got his credit file and he had a clean slate, thanks to some rather shady lane companies.

Yesterday he turned up at the pub in a brand new Mercedes ML320 (4 wheel drive). Very nice by the way. He also has a wallet full of credit cards and debit cards and is back up to his old tricks.

I had to ask him, didnt he learn the first time and replied, "Yes, run up as much debt as you can because the banks are falling over themselves to give it to you, then got to the court and declare yourself backrupt and 3 years later, start all over again".

I said, "Dont you see anything wrong in what your doing ? " He replied, "Its just a game and if he didnt do it someone else would".

I found later in the conversation that he had taken out a £75,000 loan and that he intends to spend like mad.

You have to ask yourself, is there a way out of this financial crisis or are we just propping up a system that is so very clearly open to abuse.

[Lone_Twin]

He got his credit file and he had a clean slate, thanks to some rather shady lane companies.

I don't understand this part.

.

ST

[Mick Dundee]

I don't understand this part.

.

ST

His credit file simply showed he was on the electoral register. No mention of being backrupt, no county court judgements and no defaults. He used a credit repair service. Dont ask me the details, because I dont know.

[ingermany]

Can't blame the banks.

1. It's not their own money they're lending. Brown gave them it (on condition that they give it away).

2. Brown has told them to lend more. To anybody and everybody. The banks are in no position to argue.

Can't blame the borrower:

1. The system is beyond broken. It's going to be every man for himself.

2. If someone offered you a £75K gift you'd be crazy not to accept.

[Mick Dundee]

Can't blame the banks.

1. It's not their own money they're lending. Brown gave them it (on condition that they give it away).

2. Brown has told them to lend more. To anybody and everybody. The banks are in no position to argue.

Can't blame the borrower:

1. The system is beyond broken. It's going to be every man for himself.

2. If someone offered you a £75K gift you'd be crazy not to accept.

You cannot have a society or community with the philisophy of "Every man for himself". It just doesnt work.

[Mick Dundee]

To add, it does make me think that I might be too soft and honest for my own good here though, like who I am kidding the penalty for taking out unsustainable amounts of debt and then going bankcrupt is .... invitations to take out more debt at unsustainable levels.

This sounds f----d, to me.

[Methinkshe]

You cannot have a society or community with the philisophy of "Every man for himself". It just doesnt work.

True... it only works when it is every banker for himself.....

[barrabus]

His credit file simply showed he was on the electoral register. No mention of being backrupt, no county court judgements and no defaults. He used a credit repair service. Dont ask me the details, because I dont know.

Changes his name by deed poll ?

[MOP]

Sickening.

[200p]

Bankcrupt Friend Has Just Got A £75,000 Loan.

Fine, thats why everyone is dumping £ and swapping for inflation proof assets.

Whats the point of saving your hard earned labour in something, that they are giving away? [i.e. the government and the banks].

Another step toward Zimbabwe economics.

[R K]

To add, it does make me think that I might be too soft and honest for my own good here though, like who I am kidding the penalty for taking out unsustainable amounts of debt and then going bankcrupt is .... invitations to take out more debt at unsustainable levels.

This sounds f----d, to me.

If he is doing it fraudulently and/or has lied on his loan application(s), then if he tries going bankrupt a second time he may have a rather different outcome. IIRC there is a significant number of cases where extended restrictions orders (up to 15 years) are imposed and if fraud is clear, criminal prosecution.

If he's blowing it on expensive 4x4s etc in his twenties and he ends up with a second bankruptcy, 15 year restriction and a jail term he may come to see it as not such a brilliant wheeze after all.

Edit: Oh yeah, this is "deed-poll" boy isn't it.

Edited March 10, 2009 by Red Kharma

[Daft Boy]

His credit file simply showed he was on the electoral register. No mention of being backrupt, no county court judgements and no defaults. He used a credit repair service. Dont ask me the details, because I dont know.

I know they exist but we should speak in hushed tones.

[grumpy-old-man-returns]

His credit file simply showed he was on the electoral register. No mention of being backrupt, no county court judgements and no defaults. He used a credit repair service. Dont ask me the details, because I dont know.

yes, I'm afraid this IS possible.

edited - lying is required though......

the question asked is 'have you ever been declared bankrupt' if you state no & they don't check, then you can slip through.

Edited March 10, 2009 by grumpy-old-man-returns

[Greenstuff]

My friends Mother has been doing this for years, she as been married twice, she simply runs up debts, defaults, then opens another account with id in one of her other names and it starts all over again.

My friend and her sister both had a private education been round the world, cars you name it, she has never ever had a job.

When I was working years back one of my duties was to chase debts, one day I had one from a fella called 'Singh' my boss told me to scrap it, when I asked why he said you cant prosecute somebody under the name Singh as it's not a proper surname it means Mr.

Later I told my then boyfriend who didnt believe me, his best mate was a guy called David Singh, he'd known him years, so he asked him if that was his real name.

No, he replied, it's Siddu (sp) I use Singh for tax purposes.

Later he and his brother defaulted on a small fortune,

This has been going on for decades it was simply made easier a few years back, it was another ploy by our wonderful government to encourage borrowing & debt, I think you may find we all know of at least one of these characters, perfectly legal and to be frank who can blame them?

[cartimandua51]

His credit file simply showed he was on the electoral register. No mention of being backrupt, no county court judgements and no defaults. He used a credit repair service. Dont ask me the details, because I dont know.

Mostly they're a scam & don't do anything much you couldn't do yourself.

It's relatively easy to disappear off the radar if you change your address and have a relatively common name. Bit more difficult if you are Eugenia ffotheringay-Faustenhaugh....

The prepay cards have a system whereby they "loan" you a sum of money (which you have paid upfront) then they can show a nice steady repayment for a year. Year on the electoral register, steady salary & you're back in business.

Correct in that a second bankruptcy through sheer extravagance will be treated more severely. Taking out a loan which you KNOW you can never reasonably expect to repay could certainly lay you open to fraud charges .

Edited March 10, 2009 by cartimandua51

[Mick Dundee]

If he is doing it fraudulently and/or has lied on his loan application(s), then if he tries going bankrupt a second time he may have a rather different outcome. IIRC there is a significant number of cases where extended restrictions orders (up to 15 years) are imposed and if fraud is clear, criminal prosecution.

If he's blowing it on expensive 4x4s etc in his twenties and he ends up with a second bankruptcy, 15 year restriction and a jail term he may come to see it as not such a brilliant wheeze after all.

Edit: Oh yeah, this is "deed-poll" boy isn't it.

If he's changed his name though

?

[cartimandua51]

When I was working years back one of my duties was to chase debts, one day I had one from a fella called 'Singh' my boss told me to scrap it, when I asked why he said you cant prosecute somebody under the name Singh as it's not a proper surname it means Mr.

got my doubts about this - English law is remarkably relaxed about names; it's whatever you are generally known as. You couldn't evade prosecution by calling yourself Mister Mister!!

Bit different from Iceland where I gather it's illegal to change your name. (Genealogist's paradise!)

[Mick Dundee]

Mostly they're a scam & don't do anything much you couldn't do yourself.

It's relatively easy to disappear off the radar if you change your address and have a relatively common name. Bit more difficult if you are Eugenia ffotheringay-Faustenhaugh....

The prepay cards have a system whereby they "loan" you a sum of money (which you have paid upfront) then they can show a nice steady repayment for a year. Year on the electoral register, steady salary & you're back in business.

Correct in that a second bankruptcy through sheer extravagance will be treated more severely. Taking out a loan which you KNOW you can never reasonably expect to repay could certainly lay you open to fraud charges .

The choice here sounds, like he simply dissapears by changing his name and his address and he is back in business, all the while I keep working my ass off.

[Guest DisposableHeroes]

The FSA still true to their roots

Crazy. It's the good people who Witness these peoples dishonest manuva's

As I sit here, contented with my cheese on toast.

Edited March 10, 2009 by DisposableHeroes

[Mick Dundee]

got my doubts about this - English law is remarkably relaxed about names; it's whatever you are generally known as. You couldn't evade prosecution by calling yourself Mister Mister!!

Bit different from Iceland where I gather it's illegal to change your name. (Genealogist's paradise!)

This I know is true, that is why their are names like Magnus Magnusen, Hanson Hanson.

[Mick Dundee]

CRA's will not have a link to your other names unless you supply it.

I would be ASTOUNDED if the courts/ receivers don't check legal records for name change as a matter of course. Anyone know different?

What legal checks can you don on Change of Name deed. Its not lodged anywhere, to my knowledge.

[cartimandua51]

If he's changed his name though

?

A lot of forms ask if you have ever been known by another name - deny it & you'll probably get away with it but if not, you're looking at a fraud charge.

If it's by deed poll there will be records - London Gazette IIRC -, if not you may have problems if your passport is asked for for ID.

The money laundering regulations, although introduced for a different purpose, are making a lot of these old scams more difficult than they were 10 years ago (so do computers - trawling through handwritten records was a no-no!)

[Greenstuff]

Mostly they're a scam & don't do anything much you couldn't do yourself.

It's relatively easy to disappear off the radar if you change your address and have a relatively common name. Bit more difficult if you are Eugenia ffotheringay-Faustenhaugh....

The prepay cards have a system whereby they "loan" you a sum of money (which you have paid upfront) then they can show a nice steady repayment for a year. Year on the electoral register, steady salary & you're back in business.

Correct in that a second bankruptcy through sheer extravagance will be treated more severely. Taking out a loan which you KNOW you can never reasonably expect to repay could certainly lay you open to fraud charges .

Thats the biggest key, having a common name, and using another address, you don't even have to be on the electoral roll.

You don't even need a pre pay bank account, you can go into any bank and ask for a 'basic' bank account, they dont advertise them, but have had to provide them since benefits have been paid only into a bank.

They dont have an overdraft facility and you can only set up certain types of direct debits etc on them, you just need to say you want it for bills to help you budget, or you have just started to claim benefit or you have been working abroad...

or simply open one just before you declare yourself bankrupt, it's so very easy to do.

[Mick Dundee]

A lot of forms ask if you have ever been known by another name - deny it & you'll probably get away with it but if not, you're looking at a fraud charge.

If it's by deed poll there will be records - London Gazette IIRC -, if not you may have problems if your passport is asked for for ID.

The money laundering regulations, although introduced for a different purpose, are making a lot of these old scams more difficult than they were 10 years ago (so do computers - trawling through handwritten records was a no-no!)

This apperently is option. Linky

[erranta]

You cannot have a society or community with the philisophy of "Every man for himself". It just doesnt work.

Well now you can see why Managers esp. Bosses have been paying themselves well above inflation rates for over a decade + their 'golden' parachutes and massive pensions.

Non acheivers who fooked us on the 'back' of a Global pyramid scam!

It is almost as if their Director Associations have told them to do this to prepare them for 'general population' financial breakdown - now you can start looking for the conspiracy that others have warned about for years!

The 'few' lining their pockets whilst exploiting the working population then 'outsourcing' your job when they don't make enough perceived profit for the 'shareholders' (usually other 'wealthy') persons.

Constant mantra - job for life for being loyal hard worker - naaa it's a Global economy don't ya know!

Get on your bike for a new Mc job.