Removing Name from Lloyds TSB Loan

DownButNotOut_2

Hi all

Looking for a bit of advice on behalf of my husband.

About 9 years ago he had a joint loan with his ex girlfriend. He paid off his part to her when they separated and went to Lloyds to remove his name from the account, they said they needed her to go in aswell (separately) and he assumed she had.

Fast forward to the last couple of years and he was being chased for overdue payments on the account (this was the first he knew that the she had kept the loan instead of closing the account and starting a new loan in her own name).

We realise that he is jointly liable for any monies owed on this loan and that Lloyds can come looking to him to pay it back.

We have contacted Lloyds who say it is still up to her to change the details of the loan and start a new loan in her name (which she obviously won't do as she seems to be in difficulties and probably won't be able to get a new loan in her own name).

As we have been married for over a year now and my husband has had no other link with this lady for the last 7 years, is there a way to prove some sort of disassociation with her and the loan and get him removed? Can a court get involved to force her to remove him from the loan?

Or is it a case (as we suspect) that he will be named on this loan for the foreseeable future until she eventually pays it back (if ever)?

Thank you for reading

Emmzi

No he cannot be removed. And if he cares about his credit rating he may be as well paying it off and then taking her through small claims to recover any money she has. (not worth it if she has none).

If you now have joint mortgages, accounts etc this will impact your credit rating too.

Apples2

Sadly you have it all wrong. The entire amount of this debt is as much your husbands as it is his ex's. He didn't sign up to only owe half of the loan and his ex the other half, both are responsible for all of it.

No amount of disassociation now will mean he is no longer responsible for this debt.
If no payments are being made, both his and her credit files will be getting trashed.

Take a good look at his credit file to see what damage is being done.

DownButNotOut_2

Thanks for the replies. It's as we thought then.

As I understand it, the loan has been paid and then continued to be used by the ex. It's unfortunate my husband didn't make sure she closed the account years ago, but that's the lovely thing about hindsight.

We won't be making any payments on her debt and will try one more time to contact her about this as it is damaging our credit rating.

Nicolakated

If you dont make any payments on the debt they will still chase your husband and that will damadge your credit further. If a legal agreement was made by a solicitor when they split best thing to do id pay off the borring and take her to court with any documentation to prove it was agreed a joint split. Otherwise they will chase him and take legal action.

chalkie99

DownButNotOut wrote: »

We won't be making any payments on her debt

It's not her debt it's their debt, both hers and your partners.

If she is not paying it is entirely his debt.

You can only try and recover something from her directly, the lenders won't be interested.

DownButNotOut_2

I understand it his their debt in the eyes of the law. We will be contacting the ex again as the she has taken out more money against the loan which my husband did not agree to and should not have to pay (although I do realise, in the eyes of the law, he will be liable for).

Nicolakated

Its impossible for her to borrow more money on the origional loan unless she had forged his signature.
once a loan is taken out the only way further funds can be borrowed is if its refinanced again she would have needed his signature to do this.

rhcp

I don't understand how she can take out more money against the loan. Surely the loan was a fixed amount repayable over a specified period of time. Was this an actual loan? How long is left on the loan? How much is outstanding? Or is it a joint account?

Emmzi

Do you mean it was an overdraft or a revolving credit agreement of some kind? Can you clarify?

DownButNotOut_2

Husband always calls it a loan but I'll have to clarify with him.

We're going to do an onlline Equifax thing tonight to see what's going on and then contact Lloyds again to see how much is outstanding. Last time my husband called Lloyds, the total amount of the 'loan' had gone up (considerably), which is why we assumed she'd taken more money out against his name.

I appreciate all your advice