miss sold loan??? options plz

alshcaca

my partner took out a loan of £15,200 in aug 2010 unbeknown to me,she thought she was doing the right thing by clearing an existing loan,credit cards +overdraft,but i have recently found out that the credit cards + overdraft are maxed out again(to my woes),after finally getting info from her about the loan she has been charged 21.44%apr from a "reputable"bank who said to her it was a guaranteed loan for her being a long standing customer.my partner(common law by the way)only earns £686/mth and the bank knows she has a mortgage of £267/mth,the repayments on loan are £345/mth,they told her the loan was based on her earnings+child benefit(£135/mth) +CTC(£159/mth)+NOT ON my earnings which go into her account(£1600/mth), doing the math this clearly doesnt add up, income total £980/mth,outgoings mort+loan alone £612/mth this leaves £368 for council tax £100,gas+elect combined £125,
water £40/mth,tv licence£12/mth house ins£32,car ins£17/mth(all these are clearly payments by DD from said acc)total=£326 so how is it possible to survive a mth on £42 needing food /petrol/nursery fees with two children.So i personally think they must of took my wages into acc even tho my partner says they didnt because i was not contacted for the loan agreement,(which if i had i would of told them where to shove it!!)do we have any case against said bank, plz help someone ,any advice plz would be greatfull, ty .

barbarawright

Do you make no contribution to the household at all then?

vulture

"NOT ON my earnings which go into her account(£1600/mth), "

Think you can see he does contribute Barbarawright. sorry I can be of no help but hopefully someone on here will be along to help you soon

rebeccatom

Another mis sold loan story, she wanted to borrow the money, she has to pay it back. it is not the banks fault that she has run up the cards and overdraft again, she could have cancelled them when the loan paid them off.

If taking into account that you would pay half (at least, since you had the higher earnings) then i don't see where the affordablilty issue is.

Maybe you should get her to look at the boards and see if she can learn to live within her (and your) means.

alshcaca

thanks for putting barbara right vulture,WE been doing a lot of thinking how to solve debt problems suggestions please
1)we split up and she gets iva(so as not to lose house)but will lose equity!
she will be able to claim tax credits (approx£600/mth)+agreed 20% of my wage(330/mth),I'll see kids at weekends.
2)we stay together and fight on!
2.1)will it be poss to get transfer on credit cards
2.2)and/or maybe a cheaper rate loan(than the 20.44% robbers) to clear and start again secured or unsecured?remembering her credit history might not be great now ive found out there's been late payments.
theres approx 40k equity in house.
ps help im only here 4 kidz at mo!

DevCoder

If there is equity in the house then sell it, clear your debts and rent for a while.

You can split up (which seems a rather odd first option) but the IVA will probably be linked to you as well if you have any financial connection whatsoever.

The loan wasn't mis-sold, it was mis-bought.

We were in a similar position and sold our place, paid off debts, rented for a year before getting back on the property ladder. Yes our latest place isn't as nice as the one we sold but then we aren't stressing and at wits end coping with debt.

You have no chance with an unsecured loan by the way, Im surprised you managed to get the original one as your income to debt ratio is too high (now its astronomical).

If you do clear your debts, cut up all those cards and close down any credit lines.

bargainbetty

It might also be worth doing a statement of account/proper budget, and working out what you can afford on your combined income. It might be worth considering a Debt management plan in the meantime, and you can go to one of the free providers (payplan, CCCS, to ask for help in sorting out repayments and possibly get some interest frozen (its not a guarantee).

Unless your house sells quickly, and you can set aside the money for a deposit on a rental place, this might be a way to keep the wolves from your door. It would also stop you getting decent credit for a long time, so bear that in mind if you want to get back on the property ladder later.

If you are running up that level of debt, you need to address the causes, rather than just the effects, or it will happen again. I know, I consolidated twice!

Best of luck x

alshcaca

ty betty,
theres a chance we might be able to get a remortgage,if i put my name on the mortgage,this would take up most of the equity in the house, but drastically reduce the monthly outgoings against the rise in the mortgage payments.
1)do you think this could be a good option if its possible?
2)do you think we would get a fair deal ie apr rate(or would it be a higher rate due to cred history)?
3)IF this happens how do i make sure she cannot get any more credit cards without me knowing?
4)if this happens we should be able to budget for an xtra months mort payment each year,i believe this reduces ur mortgage length considerably?
ty all help thankfully appreciated

Tixy

Is the house and mortgage currently just in her name?

to your questions -
1) what do you mean by most of the the equity? what loan to value would it take you to?
Its generally considered a bad idea to turn unsecured debt to secured debt and potentially put your house at risk.

2) do you know what is on her file in terms of missed payments etc? any defaults? how recent are the missed payments? its likely to affect your chance of remortgaging and certainly of getting a very competitive APR.

3)You cannot - as an adult she can take out cards if a lender is prepared to accept her as a customer. No obligation for any lender to tell you - even once you become financially connected.

4) overpaying your mortgage would bring the mortgage term down (you'd need to check whether your mortgage allows overpayments without penalty).

[Deleted User]

I'm lost by your suggestions, do you mean split up? or just for financial reasons and pretend?

Seems a rather weird thing to suggest, when your next option is to take a balance transfer.

You won't get anywhere with the miss sold idea, they probably did take your earnings into account. Yes you are not liable, but if she said you were earning then thats her issue.

All rather strange, I think you need help if your genuine with these suggestions... If you just want to do some fraud with the splitting up then that's your choice , best keep it quiet though :rotfl:

amyloofoo

alshcaca wrote: »

thanks for putting barbara right vulture,WE been doing a lot of thinking how to solve debt problems suggestions please
1)we split up and she gets iva(so as not to lose house)but will lose equity!
she will be able to claim tax credits (approx£600/mth)+agreed 20% of my wage(330/mth),I'll see kids at weekends. This seems like an odd first option to mention - are you actually in love with your partner / do you want to carry on with the relationship? If you want to be with your partner then I'm not sure why you're considering this, unless you're considering committing fraud and claiming to be apart when you're not going to be. That would be not only unethical, but also very stupid as you're soooo likely to be caught and would be in an even worse financial position when tax credits have finished with you.
2)we stay together and fight on! Only do this if you actually want to stay together - I'm confused about why your relationship seems to be dependent on finances, especially when there are children involved as well as housing, etc. If you do decide to stay together then please approach one of the debt management charities for advice, such as CCCS, or if you're not considering a DMP then citizen's advice should be able to give you some good pointers.
2.1)will it be poss to get transfer on credit cards This really depends on your financial position and whether you're willing to have this debt in your own name, as I doubt your partner will get a good deal on a 0% card given her income and credit history. If you're able and willing to do this then maybe it would be a good option - if you can cancel the other cards once the transfer has been made so OH can't run up the debts again.
2.2)and/or maybe a cheaper rate loan(than the 20.44% robbers) to clear and start again secured or unsecured?remembering her credit history might not be great now ive found out there's been late payments. So again, my advice would be as above, it's likely that this loan would have to be in your own name, and there is always the possibility that your OH could continue to raise debts after this has been transferred out of her name. Does OH fully understand the seriousness of the situation? Has she had her LBM? If not then you may just be delaying the inevitable.
theres approx 40k equity in house. I'm not sure if this could be used to offset the debts? There are others who are more knowledgeable in this area so hopefully they'll be able to advise.
ps help im only here 4 kidz at mo!
or id already be dead. This isn't a very helpful comment - presuming you're serious, please seek help as no amount of debt (particularly debt that's not even you're own) is worth ending your life and leaving your family and friends with the scars that would cause. Your GP should be your first contact as they'll be able to signpost you to other services in the area. Out of hours or if things get bad, then please contact the Samaritans for support.

Like others I'm a bit at a loss with your options here. The level of debt is not unmanageable if you're prepared to share responsibility with your OH, but is obviously a lot more serious if she's expected to repay from her income alone. Either way, she needs to get some advice from one of the charitable debt management agencies, such as CCCS in order to ensure that the situation doesn't get worse.

You've listed your options, but have you talked these over with your partner? What is her preference? It seems that quite apart from the debt, your relationship is suffering from a lack of communication as she didn't discuss this situation with you sooner. If you do plan to stay together, maybe it would be a good idea to get some relationship counselling? Agencies such as Relate are able to help couples to communicate and may also be able to help your partner have her LBM with regards to the debt.