Lending Credit Card to a friend Parkerpie

#1
My neighbour has lent his credit cards to some " friends" to help them set up their own business. He is naive and trusting . Unfortunately they have not made the repayments and now the debt has spiralled into around £30k. my neightbour has suffered depression as a result and does not know where to turn. he has tried talking to said people but they have dissolved the company and sprung up under another name. they will not respond to his demands for payment and I would like to know where my friend stands legally on this ? how can he claim back his money ? does he lave a leg to stand on ? I am so upset for him i want to try and help

#2
Unfortunately, as far as the lender is concerned, the debt is his.



He would need to take his own legal action against his 'friends' to get his money back.

#5
IVA or Bankrupt would be the courses of action - unless your friend has property to lose. If he has other unsecured debts then he will add them as well.

#6
So your 'friend' just handed over a credit card with a £30,000 credit limit to 'friends' to use as they pleased?

Presumably the card was used with his consent. He is therefore liable for all debts incurred on it.

#7
In providing his card to his "friends" to use your friend has broken the terms & conditions of his account and will be fully liable for the debt. What on earth possessed him to in effect to permit them to spend his credit in this way? In effect he has assisted these "friends" in defrauding the card issuer by handing over his card details.



What sort of card did he hold with a £30k limit on it???

#9
Absolutely.



The best help you could give your friend is to tell him he shouldn't have been so bloody stupid in the first place, and now he has to deal with the consequences.

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