A Horrible Situation!

Apologies in advance: this posting will be a long one, but I'd appreciate it if you would stick with it - I need the help as I'm really confused.

I moved in with a partner at the start of 2004 aware that she had huge debts but prepared to support her by bringing an extra wage into the household. To emphasise my committment, I was happy to open a joint NatWest Bank account with her so that bills could be paid from this. Whilst both of our wages went into the account, the bulk of hers went to paying off her various debts. Three months after moving in, my ex discussed with me the possibility of taking out a loan in order to consolidate HER debts, debts that were run up prior to our relationship. I agreed that she should do this as it meant less going out each month. I have a vague recollection of her mentioning the need for her to quote my income in her application, though I can't be sure. I can't remember signing anything as regards this loan but if I did, it would have been in the belief that the reason was to confirm my income so she could get the loan. The loan was awarded - all done over the phone to my recollection. I think the amount was something like £26000.

Payments of around £360 were made each month to pay off this loan but the relationship folded a year and a half later and I made my own way in life. However, some time later, on requesting my credit reference file, I discovered that the loan was listed as a JOINT account on my record! Not only that, but the account was in default and had been passed on to a debt management agency. Throughout, I have seen nothing in the way of statements regarding this loan or indeed been involved in the process of creating a debt management plan.

I did pursue things to an extent and discovered that the loan was with GE Capital (I think the original references were to Royal Bank of Scotland, though I could be wrong). When I rang GE, they told me that the debt was being paid off at a rate of £80 per month. They didn't want anything from me but said that if it went into default, they then may do. I did not give them my current address and just left it at that. To be honest, I wanted to see a document with my signature on, but was fearful that in giving my address to GE, they would then chase ME for the money. I was also worried because having had a couple of loan applications granted, they were then revoked because of a link to a financial associate, my ex!

I am now happily married and my wife and I would love to have a joint bank account etc. However, because of this 'link' we have opted for separate ones as I do not wish to tarnish my wife's unblemished credit record.

Last August, I decided to take the bull by the horns and ring my ex. I wanted to ask if there was any way she could get my name removed from the account ( a debt which even if I did sign for is not morally mine). I wondered if perhaps a family member could guarantee the loan for her thus removing the association with me. No answer, so I left a couple of messages on her answerphone to this effect. I didn't leave a number or address - just wanted her to do the decent thing.

Four weeks ago, I rang up Experian to discuss a report I'd obtained previously. There was now no reference to this account and Experian agreed to remove all links to my ex. However, on checking my Equifax online report, and my Callcredit file, the account is there in black and white showing the defaults in 2006 and the fact that £23 000 was still owing. I called Equifax telling them about Experian and they advised me to contact GE Capital.

GE Capital told me that I owe them nothing because they had passed on the debt to CL Finance. When I contacted CL, they wouldn't discuss the debt with me because they said my name was not on the account. I argued that in that case, my Equifax and Callcredit files should read 'Settled' as it looked as if I owed £23000 and they said I didn't. They agreed to contact GE and sort the matter with them.

Unfortunately, I now feel like my whole world has crashed around my ears! CL contacted me by email asking for my home address as they had now discovered I am jointly responsible for the outstanding debt and wanted to arrange recovery of it. My first reaction was to withold my address and tell them that I knew nothing about the loan. I received a second email from them stating that if I wished to dispute ownership of the account, I would have to send them my driving licence or passport.

I decided just to give them my address and yesterday received a notice of assignment stating that the figure owed was c. £21000. They said they were made aware by GE Capital of the fact (?) I (?) had made an arrangement to repay the loan at a particular (unspecified) rate. They said they would honour this and take no action as long as repayments are made as agreed (???!!!).

Whew!! I am appalled, confused and scared all at the same time. I am currently jobless though I do receive a regular small pension and do generate an income through supply teaching and exam marking. However, the fact is there is no way I could afford to repay this debt should it fall upon me to do so; I am already repaying 2 other debts run up as a result of the same relationship and these actually SHOULD be joint ones. Nevertheless, I'll have got rid of them two years from now.

Is there anything at all I can do? I don't understand any of it - why, for example, did my Experian report show no reference to the association etc? I desperately want this off my back for the sake of my health and that of my wife, who is also extremely worried.

Thanks in anticipation.