loan advice needed

Lewigreg081281

Hi people advice needed,

basically my partner has a joint loan with an ex she took out years ago.
he is complete wast of space and financially is in a mess with credit cards personal loans etc all given by Natwest.

We have just returned off holiday to find that the account she shares with him for the joint loan is to be closed due to a communication breakdown with her ex. This account has no problems and is paid every month in fact more than the amount needed is paid and there are no problems with the joint loan so this letter was out of the blue.

My partner has gone into the branch today to get to the bottom of it and they have stated that there is nothing they can do and in 30 days the debt will be passed onto debt recovery. Also she will receive bad credit. ALthough the lady she spoke to understood that she should not be held responsible for his personal finances there is nothing she can do, he spoke to the collections department who sent the letter and also the branch manager and they too said the same.

She said she cannot believed the way my partner is being treated as she is a good customer and her personal banking is also great.

1. surely my partner can't be held responsible for the mess her ex is in when the joint loan is fine and he does actually pay each month for this. Although in the past he hasn't and my partner has had to pay some months but we have always got it back off him.

2. what will happen if they do shut this account this is how the loan is taken each month.

Basically it turns out all the other debt he owes to Natwest he isn't paying and is using the payment protection to cover the payments. But this shouldn't effect my partner?

Natwest have been useless over the last year or so often taking double payments on the joint loan then saying they cannot retrieve it etc etc. Also they often mess up other banking requests for my partner to the point where she now does her personal banking through Halifax. I also hear the same problems with Natwest from friends 'helpful banking' my !!!!!

i honestly do not know what the problem is with the joint loan it is paid every month and has never had any problems. My partner has requested the bank to split it in the past and this is not something they can do apparently. Although Natwest suggested she take the loan on solely (not a chance!) if it is this easy to transfer the loan in to her name only why is it not to split it?

help needed

Lewis

milliemonster

I don't understand how if the loan is being paid every month then the debt is being passed on to debt recovery? they would only do that if the loan was in default and payments are not being paid. Can you clarify what is happening? Is it that your partner is paying her half to he ex each month?

Or are you saying that the bank account her ex has where the loan repayments come out of is being closed because of his conduct? If that is the case, then unless your partner shares this account with him (not the loan) then she should not be affected (unless he stops paying the loan), if this bank account is a joint account then she should have closed this when she left him.

Any joint finances that your partner still has with her ex she will be jointly liable for, if he defaults, they will come to her for the money

Lewigreg081281

Yes sure thanks, they both have a joint account )(they share this account) from which the loan payments are taken each month. The loan payments are paid every month and there are no problems with this account. She cannot shut this account as the payments are taken from this account each month for the joint loan.

it is only his personal account that the bank has problems with, the fact being he isn't paying anything back regarding his personal loans etc. However because he is linked with this joint account although this one is fine and up to date my partner is suffering.

thanks

CLAPTON

is your partner actually paying the full loan payments or is he paying half?

Lewigreg081281

he has been paying half each month, there has been the odd month where he hasn't paid on the actual date but my partner pays it out of her money then gets it off him at a later date. The loan is paid each month no matter what, i think they are using her to get him back in communication with them

lewis

CLAPTON

Assuming his credit record is poor then this will be affecting your GF's as they share a joint account.

How much is the loan?
I would seriously consider refinancing the loan (i.e. getting a new loan) and paying off the old and then also closing the joint a/c
I understand this may mean that he stops paying but I guess that depends upon how mcuh the loan is.

In principle halifax could raid the joint a/c to pay off his individual debts under their general right to offset debts from any related account.

Lewigreg081281

thanks again,

how does the Halifax thingy work? my partner has been with them a month or so now, will this still apply? there is about a year and half left on the loan i'd say roughly around 4k.

He will have poor credit. Is my partner best to just get that account closed asap then? how bad will this affect her credit rating and will it affect me at all?

CLAPTON

I'm not sure what you mean that your partner has been with them for a month or so... presumably she has had the a/c and loan for several years?


Basically if people have joint loans or current a/cs this usually shows on their credit records as they are linked financially

so when either apply for credit, the potential creditor will check both credit records.. best if she checks her credit files.

Lewigreg081281

the joint loan was with Natwest, her ex banks with Natwest, my girlfriend did use Natwest for her personal banking but due to their constant mistakes she now uses Halifax who she has been with for only a month or so.

The only account she holds with Natwest is the account of which the loan is taken.

lewis

CLAPTON

i misunderstood that... but that sounds encouraging if Natwest gave her an a/c ok
but I would still suggest she gets copies of her credit files.

Lewigreg081281

Halifax gave her an account ok, she was with Natwest for years, if Halifax have given her the account recently then that is a good sign?

how does the 'general right to offset debts from any related account' work with halifax?

cheers mate