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Is opening a contract for someone to avoid credit checks legal? Watch

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    One of my friends is asking for me to open a phone contract for them as they 'have trouble' with contracts and in particular the credit checks they do. He says he'd pay me for the stuff and that I could transfer it to him after a bit.
    It sounds kinda.. Illegal to me? Not only that but I don't think you can transfer accounts. Plus I already have one phone contract on my account .
    Any views?


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    I don't think it's illegal - after all, parents have phone contracts for their kids, but you have to think about it. Yes, he says he'll pay, but will that continue? And a quick Google search suggests that to transfer the account, the person to transfer it to still needs a good credit rating, so if he can't get one now, it's unlikely that it will be transferred (maybe unless something major happens between now and then, but that's unlikely)
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    It is legal enough, as they will rerun the check when it is transferred. However you will be entirely liable for any debts he runs up on the contract while in your name, which might affect your credit rating.
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    (Original post by marinaim)
    One of my friends is asking for me to open a phone contract for them as they 'have trouble' with contracts and in particular the credit checks they do. He says he'd pay me for the stuff and that I could transfer it to him after a bit.
    It sounds kinda.. Illegal to me? Not only that but I don't think you can transfer accounts. Plus I already have one phone contract on my account .
    Any views?


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    Don't be naive to do it, because if they a do a credit check on you it would also work against you if you needed to take out credit in the future. All checks go on your credit file and leaves an electronic footprint which shows on your credit file for 12 months. At the same time too many searches can affect your ability to get credit. Any failure to pay towards paying the contract itself could led to defaults on your credit file and further action such as debt collection a county court judgement. This could affect your ability to get a job in the future as companies now do credit checks and disclosures on information such as this if you were to work for example in the banking sector, even law firms, some do financial disclosures, as part of their due diligence. Also its pretty apparent if someone wanted to search to see if you had a CCJ its public information.lol.
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    (Original post by marinaim)
    One of my friends is asking for me to open a phone contract for them as they 'have trouble' with contracts and in particular the credit checks they do. He says he'd pay me for the stuff and that I could transfer it to him after a bit.
    It sounds kinda.. Illegal to me? Not only that but I don't think you can transfer accounts. Plus I already have one phone contract on my account .
    Any views?


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    Never get a contract for someone else!
    It is 100% legal but it just means in the eyes of the law you hold the contract not him. Are you recall sure he will continue to pay for 2yrs? Are you sure you'll still be close in 2yrs?
    If he does not pay it will be your responsibility to pay, they will come after you for the money and it will affect your credit rating.

    It's not worth the risk IMO, it's better to not mix money and friendship. Also to not get a phone contract his credit rating must be awful (my bf got one with a CCJ) and if they don't want to lend then it indicates he is not financially responsible or reliable.
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    http://www.worldstarhiphop.com/video...B8LqJhtUnkBZ8t
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    (Original post by Georgie_M)
    Never get a contract for someone else!
    It is 100% legal but it just means in the eyes of the law you hold the contract not him. Are you recall sure he will continue to pay for 2yrs? Are you sure you'll still be close in 2yrs?
    If he does not pay it will be your responsibility to pay, they will come after you for the money and it will affect your credit rating.

    It's not worth the risk IMO, it's better to not mix money and friendship. Also to not get a phone contract his credit rating must be awful (my bf got one with a CCJ) and if they don't want to lend then it indicates he is not financially responsible or reliable.
    Yeah, OP needs to think long term, because once you have a CCJ you can never work for certain companies. It rejects your application, automatically working for a bank, as they do a credit check straight away places like LloydsTSB or any financially advisable jobs.

    http://www.theguardian.com/money/201...ng-offence-ccj

    If you want to go high up in the world don't do it.
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    (Original post by SloaneRanger)
    Don't be naive to do it, because if they a do a credit check on you it would also work against you if you needed to take out credit in the future. All checks go on your credit file and leaves an electronic footprint which shows on your credit file for 12 months. At the same time too many searches can affect your ability to get credit. Any failure to pay towards paying the contract itself could led to defaults on your credit file and further action such as debt collection a county court judgement. This could affect your ability to get a job in the future as companies now do credit checks and disclosures on information such as this if you were to work for example in the banking sector, even law firms, some do financial disclosures, as part of their due diligence. Also its pretty apparent if someone wanted to search to see if you had a CCJ its public information.lol.
    (Original post by Georgie_M)
    Never get a contract for someone else!
    It is 100% legal but it just means in the eyes of the law you hold the contract not him. Are you recall sure he will continue to pay for 2yrs? Are you sure you'll still be close in 2yrs?
    If he does not pay it will be your responsibility to pay, they will come after you for the money and it will affect your credit rating.

    It's not worth the risk IMO, it's better to not mix money and friendship. Also to not get a phone contract his credit rating must be awful (my bf got one with a CCJ) and if they don't want to lend then it indicates he is not financially responsible or reliable.

    Decided not to, told him I wasn't comfortable with it and luckily he understood :-)
    He said his parents have never had credit so wouldn't be able to do it for him, but he'd try himself. Not sure how it went
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    (Original post by marinaim)
    Decided not to, told him I wasn't comfortable with it and luckily he understood :-)
    He said his parents have never had credit so wouldn't be able to do it for him, but he'd try himself. Not sure how it went
    Sorry someone woke the thread up didn't realise it was so old!
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    (Original post by marinaim)
    Decided not to, told him I wasn't comfortable with it and luckily he understood :-)
    He said his parents have never had credit so wouldn't be able to do it for him, but he'd try himself. Not sure how it went
    Just remember credit, is based on the individual it has no relevance to parents. Once each individual hits 18 they have one, its based on several factors such as their relationship with their bank, whether they are on the electoral roll etc. so many young people these days do dodgy things to ruin it and end up with markers on there credit files, bank charges, failure to pay credit agreements, payday loans etc. These last for 6 years on a credit file.
 
 
 
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