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Joint loan worries
Hiya,
I want to thank anyone in advance who can offer me any advice...I am going to see CAB next week, so was hoping to get any extra advice beforehand...
In 2005, I go a joint loan with a partner who had debt and was pretty bad with finances, I was 21 and just wanted to fix everything! The loan was for £11,000.
The idea was to consolidate his various loans and credit etc. and for an extra bit of money to buy a motorbike and a car. £1000 of this was used initially to buy my first car, of which I payed back myself straight away out of my student loan. The reminder of the money was all for his consolidations etc.
We have been split up since 2005, and we are still in contact. As far as I was aware, he was paying this loan (he accepts all responsibility for the loan, much appreciated), and other loans he has had since.
A few days before xmas I received a letter from a debt collection agency for £10,000. They had bought the loan from the AA, as he had not been paying it, and they were asking for payment from me.
Apparently, they have been unable to get in contact with him as he had moved address, and therefore he has not been paying the loan for a while hoping the debt had been 'wiped off'. I have now learnt that he has an IVA with other loans, but does not include this one.
He has arranged a payment plan with the debt collection agency paying over a 5 year term. I have rang them to confirm this. Having spoken to the consultant, I am now the main account holder (of which I was never on the original loan) and cannot remove my name from this agreement in any way.
I have checked my credit report with both experian and equifax, and there are no defaults on there (as yet). I have a great credit rating, and no debt problems (apart from this!).
I understand that joint finances are JOINT and I cannot get out of this. I am concerned that if he falls out of work, or has an accident that this £10,000 loan will fall on me to pay.
I was once briefly advised by nationwide that I could get life insurance for him, and if any circumstances like this were to arise, I would be covered. Does anyone know anything more about this? Not in a dodgy way I might add...we are still friends!!!!
Thank you very much again for any help you can offer me!
I want to thank anyone in advance who can offer me any advice...I am going to see CAB next week, so was hoping to get any extra advice beforehand...
In 2005, I go a joint loan with a partner who had debt and was pretty bad with finances, I was 21 and just wanted to fix everything! The loan was for £11,000.
The idea was to consolidate his various loans and credit etc. and for an extra bit of money to buy a motorbike and a car. £1000 of this was used initially to buy my first car, of which I payed back myself straight away out of my student loan. The reminder of the money was all for his consolidations etc.
We have been split up since 2005, and we are still in contact. As far as I was aware, he was paying this loan (he accepts all responsibility for the loan, much appreciated), and other loans he has had since.
A few days before xmas I received a letter from a debt collection agency for £10,000. They had bought the loan from the AA, as he had not been paying it, and they were asking for payment from me.
Apparently, they have been unable to get in contact with him as he had moved address, and therefore he has not been paying the loan for a while hoping the debt had been 'wiped off'. I have now learnt that he has an IVA with other loans, but does not include this one.
He has arranged a payment plan with the debt collection agency paying over a 5 year term. I have rang them to confirm this. Having spoken to the consultant, I am now the main account holder (of which I was never on the original loan) and cannot remove my name from this agreement in any way.
I have checked my credit report with both experian and equifax, and there are no defaults on there (as yet). I have a great credit rating, and no debt problems (apart from this!).
I understand that joint finances are JOINT and I cannot get out of this. I am concerned that if he falls out of work, or has an accident that this £10,000 loan will fall on me to pay.
I was once briefly advised by nationwide that I could get life insurance for him, and if any circumstances like this were to arise, I would be covered. Does anyone know anything more about this? Not in a dodgy way I might add...we are still friends!!!!
Thank you very much again for any help you can offer me!
0
Comments
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If he falls out of work or is sick then a PPI policy would cover him.0
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