joint loan - ex trouble

nobbysnuts_2

For the last 5 years I have been trapped in a joint loan with my ex boyfriend. We split a year after taking out the loan for £11,000.00 and after 6 months of us both paying half each he stopped paying and refused to negotiate. I paid my half for a year but because the interest was building up as i was underpaying i stopped paying hoping that it would be taken to court and we could split it down the middle. I have battled with Lloyds over this and they have been no help at all saying that the only way it can be split is for us both to take out our own loans to pay off half each of the joint loan.
There is no way my ex would do that and he is just being unreasonable about the whole thing. I have had endless calls and letters from Lloyds and have directed them all towards him, he has made sporadic payments of £50 every 6 months or so which keeps them at bay but i want this to go to court to force the issue and Lloyds are just dragging it out. Now they have sent the loan to Debt Manager Ltd which I only found out after 6 months of hearing nothing to which they have said that they didn't have any contact details for me and have a new address for the ex. It looks like they have rattled him a bit as he has been making payments every month for 'his half'.
I have been happy to pay my half of this loan all along but as I’m a single parent working part time I was hoping to do it amicably as we first agreed, not for it to drag out for four years and the repayment is still £9,700.00!! How can this be allowed to go on so long without any court action?
I have been advised to take him to court for his half but for one I cant afford it as my income is too high for legal aid and also the outcome may not go in my favour.
I have also been told (by someone at Lloyds) that as he has property, is working part time and has no dependants he would be the one most likely to be pursued if it went to court.
As this new company has none of my contact details should i just relax and let them carry on pursuing him for this money as i have stressed about this for long enough while he has been unreasonable and ignorant. I am well aware that I am Jointly and Sever ably responsible but then again............so is he.
One last note. My current boyfriend wants me to move in with him. He rents a house and buildings that he runs a business from and is worried that this will be affected if things get out of hand with this loan. My name would not be connected to anything to do with him, his property or the business so does he need to worry?

nobbysnuts_2

Sorry meant to say he's working 'full time' not part time.

bfgun

Firstly, I wouldn`t do `nothing` and ignore it. Just because they don`t have your contact details you probably wouldn`t be difficult to find and you don`t want a CCJ lodged against your name.

Have you spoken with Citizens Advice? They may be able to provide a solution or at least offer some help in going forward.

sillystudent_2

I have battled with Lloyds over this and they have been no help at all saying that the only way it can be split is for us both to take out our own loans to pay off half each of the joint loan.

Umm got some bad news I'm afraid in regards to 'splitting the loan' - a joint loan is exactly that - 'joint and severable.' It means that you are each responsible for the whole of the loan - e.g. if your ex went bankrupt or fled the country, you would be liable for the full amount. Lloyds, unfortunately, are completely correct in saying the only way to divide it would be to take out new loans - and the law is on their side here

have also been told (by someone at Lloyds) that as he has property, is working part time and has no dependants he would be the one most likely to be pursued if it went to court.

That is true - if you personally have few assets and your ex has a property, Lloyd's will most certainly pursue him (in terms of court orders) for as much as they can (as above, they could in theory pursue him for the whole amount) before going after you, since it would be much
more cost-effective for them to do so.

As this new company has none of my contact details should i just relax and let them carry on pursuing him for this money as i have stressed about this for long enough while he has been unreasonable and ignorant. I am well aware that I am Jointly and Sever ably responsible but then again............so is he.

If Lloyds don't have your details then yes, they will probably pursue your ex first for the whole amount, given that he is comparatively asset-rich and they don't know where you are. The main downside to you will be your credit rating - it will continue to suffer whilst no payments are made on the loan, and if a default is ultimately issued it may seriously harm your ability to get credit for the next couple of years

One last note. My current boyfriend wants me to move in with him. He rents a house and buildings that he runs a business from and is worried that this will be affected if things get out of hand with this loan. My name would not be connected to anything to do with him, his property or the business so does he need to worry?

No - credit records are linked only to individuals, not to addresses. However, I'd strongly advise getting any kind of joint bank account/loan/other financial product with your boyfriend - otherwise your credit record and name will be linked with his, and he may find it hard to get credit then (I'm assuming given non-payment that your credit rating will be below average to poor by now.) As long as you don't get any kind of joint financial product with him, however, there will be no association.

Hope this helps

Ritchie74

Sorry I can't advise on the likely outcome if this were to go to court. Hope you manage to get some resolution. Banks don't care who pays when it comes to joint accounts as long as they get their money.

With respect to your new fella, as long as you don't have any joint accounts then your credit histories cannot impact on each other, ie if he applies for credit, the creditor cannot view your credit file (and vice-versa).

nobbysnuts_2

Thanks for all your replies.

I think my credit rating will be kaput anyway because of all this which is incredibly annoying as i have never defaulted on payments for anything before. I have learnt a valuable lesson about joint loans.