Getting a loan without telling partner

Did_it_wrong

I wonder if anyone has come across what seems to be an unneccesary hazard for people who are thinking of taking out loans and obtaining credit cards. We are a retired couple who have got into financial difficulties as result of what to us is a serious flaw in the Financial System.
We thought at first this would be a specific complaint about particular Banks but it appears that all banks work along the same basic lines.

Two years ago I got into financial difficulties as the result of running up a bank overdraft, maximising two credit cards and obtaining a personal loan. I did not inform my wife of the situation until it had become critical. This means that now,although she was not involved with my running up an overdraft,obtaining a second credit card and a personal loan, the burden of repayments through the resulting Debt Management scheme has fallen on to our joint Bank Account and consequently she is having to suffer the results through no fault of her own. Importantly she has lost access to and control of her State Pension and Disability Allowance as these have had to be included in the Management scheme to obtain realistic payments and the minimum settlement time. Being partially sighted she trusted me to deal with the Family finances and we had changed to paperless on line statements.
Surely it is wrong that I could get a personal loan, a second personal credit card and commit our joint account to the burden of repayments and the ensuing overdraft without ,as far as the banks were concerned, informing my wife....in other words advising me to discuss it before committing myself.
There must be a very serious loophole in the system which can allow this to occur and we wonder if you have come across it before. For the sake of other people we should like to bring a stop to such a lax and cruel system.
Has anyone else done such a daft thing and does anyone know how to get the Banking Law changed?

Apples2

Marriage is about trust.

Your wife trusted you enough to become financially.linked, she trusted you to be sensible and ensure the well being of both of you, likewise, you did the same.

You can't go blaming everyone else as if you are the victim.

BoGoF

There are alternatives to a Debt Management scheme, bankruptcy for example so you choices not to involve your wife in the paying back of the debt.

copier_guy

why did your wifes income have to be included on a repayment plan? is that normal?

skintandscared_2

With all due respect, you are not in this situation due to a flawed financial system. You are in this situation because you took on this debt without telling your wife. It is not up to a bank to ensure that you discuss it with your wife; you are a grown-up and you know you should have discussed it with her, without being told!

Yes, it IS wrong that you could get the overdraft, credit card and loan without informing your wife, but do you not think it's you that's in the wrong?! The bank have no moral obligation to your wife - you do! You are supposed to be her partner and take care of her!

It's really no big secret that couples who are financially linked can be held jointly responsible if one of them over-commits on debt. I have debts, which I'm dealing with through CCCS and which my partner knows about, but we have purposefully never opened a joint bank account or had any financial links, so he will never be responsible for my debt.

It's probably time to stop blaming other people, and take responsibility for your actions. It might be worth contacting one of the free debt counselling services such as CCCS, who are fantastic at helping organise payment plans and get debt down to a manageable and realistic monthly payment. Then just concentrate on living within your means, getting the debt paid off and earning back the trust of your poor wife!

antrobus

Did_it_wrong wrote: »

Surely it is wrong that I could get a personal loan, a second personal credit card and commit our joint account to the burden of repayments and the ensuing overdraft without ,as far as the banks were concerned, informing my wife....

I agree. What do you think your punishment should be?

theoretica

Did_it_wrong wrote: »

Importantly she has lost access to and control of her State Pension and Disability Allowance as these have had to be included in the Management scheme to obtain realistic payments and the minimum settlement time.

I believe that disability benefits are classed as an income which may not be taken into account when determining debt repayments. They are given because they are deemed necessary for living with the disability which is more important than a 'minimum settlement time' of a spouse's debts.

jonesMUFCforever

Another troll alert! Stupid preposterous tale.

jamesd

Your wife has no liability for your debt. Your own income must be used to handle it, but not hers. She can freely switch her money to be paid into a different account if she wants to. The exception is debt incurred in an overdraft on the joint account, or any other debt that she actually signed for herself as a co-signer.

There is no minimum or maximum settlement time. If all you can afford is £1 a month after paying your part of the essential living expenses of the household then that's all you have to pay and it lasts as long as it lasts.

Assume that debt collection companies will lie to you about this and stop treating her money as yours. It isn't yours, it's hers.

If you haven't contacted a debt help charity like CCCS I suggest that you do that and start getting some honest answers and proper arrangements set up to deal with your debts, without unnecessarily involving your wife.

Emmzi

if you move out and divorce she won't need to support you. simple.

immoral_angeluk

DMP companies/debt charities usually use household income when calculating what you can offer to creditors, BUT in case where clients don't want their partners to know, or a family has TOTALLY seperate finances then sole income could be used. However it is normally suggested to the client that they NEED to talk to their partner as debt never affects just one person in the household.It's unusual for the whole household income to be considered without the knowledge of the other partner though as obviously this would have a big impact on family finances.
Also, DLA is rarely included as income,and is taken off expenditure as 'adult care costs', UNLESS the client has specifically requested it be used. That's based on guidance from the BBA's common financial statement and OFT debt management guidance.

What DMP company did you use and did you tell them to use household income and the DLA?

Also, how did she 'lose access' to her pension and DLA? All a DMP would do would be to take a payment from your account once a month same as other bills, not freeze the account or anything, so the only way she would lose access to them would be if you physically stopped her.