Single name loan suddenly in joint names!

JoviAli

On behalf of my friend - HELP! Advice needed please!

Are you sitting comfortably, then I'll begin...

Once upon a time a chap called N took out a loan on line to buy a boat. The loan was duly approved and a cheque issued. When the cheque was delivered, his wife J, signed for it as N was at work. J was also asked to sign another bit of paper that she thought was for a receipt and certainly, nothing was said about this second bit of paper that would have lead her to believe otherwise.

Now, over a year later N & J are getting divorced. J changes her mortgage so cancels direct debits to Building Society. J then gets letter saying she hasn't made the loan payment... But why should she, it was coming out of N's account and is in N's name only - WRONG, loan is in JOINT NAMES according to Building Society (we'll leave the point that N was supposed to have paid off the loan with his share of the equity in the house!:mad: ).

What I need to find out, is can they do this? Nothing was ever said that signing for the cheque meant she effectively put her name on the loan - and when she cancelled the direct debits, again nothing was said.

I have advised her to complain to the Building Society or the powers at be, but going through a sticky divorce with a git of a soon to be ex is stressing her out so much she can't cope with more.

Can anyone advise on what to do? Any thoughts would be great - I'll pass them on.

Thank you in anticipation

JoviAli xx

olly300

I have two questions:
1. If the loan wasn't legally in joint names then how come J was allowed to sign for it?

2. What does the piece of paper say that was signed?

Debt_Free_Chick

Ask for a copy of the Credit Agreement. This will show the terms of the loan and should also show who signed the Agreement.

JoviAli

olly300 - 1st one - good point!, 2nd - I don't know what the piece of paper said - I'll have to ask J but I don't think she has seen a copy since, so that would be a good starting point.

I will also ask about the Credit Agreement (Debt_Free_Chick). I don't think J can get her head round this so I think I will need to help her. Just knowing the correct terminology is half the battle!

Thanks guys

Bossyboots

I can't see why they would deliver a cheque and ask one party to sign their agreement to the loan at that point. that just doesn't make sense. Don't signatures have to be witnessed for this? I have certainly witnessed a fair few documents for neighbours relating to mortgages and loans.

It sounds more like she has signed previously and not read the document or her signature has been forged.

JoviAli

I'm wondering if it is something to do with the fact it was an online application? I've never applied for a loan that way, so perhaps it's something to do with that?

The only items she signed were when the cheque was delivered - that's it.

I think I'll get her to get copies of all documents with her signature and go through them with her, which should be what the Building Society did but when she went to see them, their attitude was "well you signed when the cheque was delivered - that's it". Even if she did sign what was the agreement, surely someone should have said "If you sign this, it means the loan will be in your name as well"?

Somerset

JoviAli wrote:

Once upon a time a chap called N took out a loan on line to buy a boat. The loan was duly approved and a cheque issued.... WRONG, loan is in JOINT NAMES according to Building Society

This is just a thought, but it could explain things. How does your friend KNOW her ex took the loan out in his name only. She assumed it ... trust etc. What if he was a git then too and applied in joint names online ... the paperwork she signed on acceptance of the cheque accepted the online application ?

As previously advised, she needs to get a copy of the Credit Agreement/Loan application. Reputable lenders don't scam like this, though they do make mistakes. My money would be on the ex making a joint application without telling your friend the truth, and the confusion by your friend about what she was signing as being her agreement to the loan.

A mess if the above is true !!! Getting copies of the paperwork is the starting point ... see what that says.

JoviAli

Well, unfortunately, I wouldn't put it past him - he's a 100% prize-winning b@$&%*d make no mistake! However, in his defense (can't believe I am defending him, even slightly, I would doubt he'd filled in the form without J's help - never has been that savvy on the internet.

She's rung up and asked for a copy of all the paperwork so hopefully we'll get a bit more info then. If it is that he did apply in joint and/or changed it to joint, then there will be fireworks - even if it is after Bonfire Night!

Thanks.

JoviAli

Bossyboots

I still find it hard to believe a loan company would bowl up with the cheque and only get the paperwork signed at that very moment.

I hope she has learned her lesson never to sign anything again without reading it thoroughly.

JoviAli

I think that we can safely say she has!

Xbigman

I once went guarantor for my brother on a car loan, I filled in the guarantor bit myself, but they put it in joint names. Its possible on the internet application that they asked if he was married, then for wifes details. Hey presto, loan issued in joint names.

As for what she signed, do you mean she signed for a letter from the postman that contained the cheque? If you mean she had someone from the loan company come around with paperwork and a cheque then I'm moderately surprised.
Regards


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