Problematic Loan

debt_free_soon

Hi MSE's, I need some advice please.

I'm posting here on behalf of my sister as she doesn't have Internet access.

A year ago, she took out a joint loan with her partner for £15k with Alliance and Leicester.
She is the prime signatory on the loan account and the repayment comes from her bank account each month.
3 months ago they split up, agreeing that he would pay his half of the loan repayment into her account each month.

He has never been very good at doing this, although he has always paid eventually.
He has now lost his job, so allegedly cannot afford to pay his half this month.

The problem is that my sister doesn't earn enough or have enough in the bank to cover the complete loan payment.

She has been in contact with A+L who are not even vaguely interested in helping out. (she was hoping that they'd be able to split the loan, as she doesn't want to default on her half - they won't do this)

Any suggestions as to what she should do next?

tom188

Unfortunately she is fully liable for the entire amount of the repayments. The loan may be in joint names but each name is jointly and severably liable for the whole loan - ie if one person is unable to pay half then the other person must pay the total amount. If she is unable to pay she must see if she can negotiate a longer repayment time with AL and try and come to an arrangement with her partner regarding when she will get back the payments she is owed from them.

lotte123

Your poor sister . Unfortunately lenders not caring sounds all too familiar. I was left with a joint overdraft with my ex that the bank would not split or be at all helpful in dealing with it. Legally she has no redress and Tom's advice is spot on. It's a horrible and unfair position to be in and sadly not uncommon. I wish her all the best in dealing with it.