Do I actually have a joint loan

corbyboy

I originally posted this on the PPI forum but have decided to ask additional questions here. Here is the original post.

In November 2006 I took out a £7,000 personal loan with Halifax that included PPI merged into the total cost.

I was initially rejected for the loan, most likely due to insufficient income, so I was told if I added my dad on they would approve it. I did this and the loan was approved.

I remember very clearly the salesman telling me that my dad would never be liable for the payments on the loan, and that he was just there as extra security. Before you laugh at me, remember this was a few years ago and if the man at the bank told me something I had no reason to believe he might lie.

So it seems we actually have a joint loan. From what I have posted does this seem to be the case? I am looking at reclaiming the PPI since this only covers me. If this turns out to be a joint loan I think I might have a case.

corbyboy

I just wanted to add some more details here as I still have all the paperwork from when I took out the loan.

My dada is clearly listed under "2nd applicant" and his signature is required everywhere that mine is on the paperwork. At no point is my name listed anywhere on the paperwork just by myself, it is always both our names.

There is a final sentence at the bottom of the paperwork that says "You agree to pay the total loan on the basis of the conditions set out above and in the Conditions booklet, a copy of which you have received." This has both our signatures above it.

So can anybody confirm that this is indeed a joint loan and my dad will be liable for repayments too?

david39

If your father has signed everywhere that you have signed then, unless there are other reasons why the whole loan agreement is invalid, your father is as liable for the repayments just as you are.

You will probably find the term "jointly and severally" somewhere in the wording of the agreement which means that both of you are equally liable and, if you fail to repay the loan, then each of you can be sued for the whole of the remaining balance - that means that if one of you absconds or dies, then the other person becomes liable for the whole of the repayments, not just half.

You have a joint loan.

corbyboy

Thanks for the reply. It seemed clear to me that it was a joint loan. Glad to have somebody else's viewpoint on it.