Loan without partner knowledge

Idiot3

I recently sent in a new thread due to computer problems I have had to re-register in order to continue the discussion.
The original entry read.......

"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?"

I had not expected the level of vituperation in the replies as I am only too aware that what I did was stupid but I should have explained that the reason I did not concern my wife was that at the time she had recently suffered a stroke and I was advised to avoid stressing her further, later she was bereaved losing her brother.
My question was NOT to seek approval for my silly and ill advised action.........for which I shall be paying emotionally for the rest of my life but to simply find out if others felt that it would be advisable for banks to suggest consulting one's partner before getting into deep water ( whether or not it was a legal requirement it would be a sensible one.)

ILW

Surely when you marry a become financially linked, you know that your partners behaviour can affect your own finances. If you wish to avoid this, just do not marry and keep your finances separate.

hcb42

no, I do not agree the bank should advice you should seek your partner's advice before committing yourself to payments you cannot afford.

It is a personal responsibility ultimately.

RichGold

You're wasting your time here. How could the banks force one partner to tell the other? Even if they did suggest it, it would be wide open to abuse.

Its about trust. And trust is often abused.

Tixy

She doesn't need to include her income in the figures for your management scheme. She could choose to have this money paid into a separate bank account and spend it as she wishes.

If you have a joint overdraft she would become responsible for paying it if you are unable to. When you both chose to have a joint overdraft this tied you to each other financially and requires both parties to accept the financial actions of the other.

Perhaps you could consider bankruptcy as an option if your own income isn't sufficent to pay back your debts even under a debt management plan. Have you had some advice from one of the debt advice charities?

Tixy

Your previous thread is here if you were unable to find it OP - https://forums.moneysavingexpert.com/discussion/3405977

bouncydog1

Whilst I can understand your angst at how you have been left financially, when you open a joint account you have to advise who can sign to operate the account - either one or both signatories.

Clearly you and your wife trusted each other to operate the account on one signature.

At the end of the day the bank operated authorities for repayments in accordance with the mandate. It is not their responsibility to make sure that individuals tell their partners what they are doing financially. What about people who finance "surprises" for their partners knowing they can afford them - what would happen if the bank advised the partner?

In the event that you had been able to continue making your repayments you would not be complaining about the bank. I believe you should forget about the bank who have not done anything wrong and look into the various options for sorting out the problem - as Tixy says bankruptcy may be an option and give both you and your wife some peace of mind.

There is also not the same stigma as there was years ago if that is what you are worrying about.

immoral_angeluk

The data protection act prevents banks from discussions things with non account holders, so I can't see it ever happening. There are also cases such as domestic violence etc where it would cause severe consequences.
I believe in the current system based on it being the responsibility of people to tell their spouses. A relationship is about trust, and if one partner is purposefully decieiving the other partner it's not the bank's fault, it's that persons.

RobertoMoir

You chose to take out a loan, max out the cards, etc. You had problems with it. You chose to include her money in the DMP. You chose not to tell her until it was too late.

I agree that its a shame that your wife is affected by what has happened here. I just don't agree that its the fault of the banks.

skintandscared_2

Idiot3 wrote: »

I had not expected the level of vituperation in the replies as I am only too aware that what I did was stupid but I should have explained that the reason I did not concern my wife was that at the time she had recently suffered a stroke and I was advised to avoid stressing her further, later she was bereaved losing her brother.
My question was NOT to seek approval for my silly and ill advised action.........for which I shall be paying emotionally for the rest of my life but to simply find out if others felt that it would be advisable for banks to suggest consulting one's partner before getting into deep water ( whether or not it was a legal requirement it would be a sensible one.)

In the circumstances you've laid out, would it have made any difference if the bank HAD suggested you consult your partner? You still wouldn't have, as you didn't want to stress her out (completely understandable).

By giving a reason why you did NOT consult your wife, you are basically admitting that you knew you should have. I'm really sorry if you found the previous advice harsh and I'm really not having a go, but do you honestly think it's the bank's responsibility to make sure a husband talks to his wife about a major financial commitment?

DCFC79

Why did you have to re register due to computer problems.