Re: Bank Loan Defaulter

bsadmin

Hi.
I used to share my accommodation with a person from Europe for 4 years . He just returned back to his country but yesterday I got a letter from his bank that he has got a loan of £10000 and hasnt paid his last 2 monthly payments.
The letter clearly states the possibility of legal action and future troubles for any type of loan on this property.

Since he put my address as his bank address and he is not replying to my phone/email, I am pretty sure he is not coming back.

Is there any way, that the bank can track him and make him pay for his loan or does it simply mean that I m screwed since my credit history will also get a hit ?

Are banks allowed to trace the recent transactions through his bank account in order trace where the money has been transferred and can claim the money back ?
I understand that his country might not be in UK bank jurisdiction and can perform any legal actions towards him.

Any reply or suggestion is truely appreciated.

Thanks

B

Hang_Tight_Harry

Assuming the loan is in his name alone, it should not affect you - even if you shared an address (and I assume, when you wrote this "Since he put my address as his bank address" you mean he gave your address as his home address?).

bsadmin

Yes, he gave my address as his home address.
Its a relief if its not going to affect me.
But are our bank laws so mellow that any one can take advantage of our banking system and can run away with such hefty loans ?
I mean isnt there any kind of law against it so it will make such defaulters to pay back or atleast stop from entering UK again in future ?

gb12345

bsadmin wrote: »

But are our bank laws so mellow that any one can take advantage of our banking system and can run away with such hefty loans ?
I mean isnt there any kind of law against it so it will make such defaulters to pay back or atleast stop from entering UK again in future ?

UK debts can be chased abroad (particularly in other EU countries), so if they know where he lives they can pass the debt to a local debt collector.

[Deleted User]

Most people don't need to go to the trouble of fleeing abroad. I believe the general course of action is to 'lose' your debit card and stop opening the post.

At least, that's what's I've learnt from hanging around this board...

malcolmffc

Deleted_User wrote: »

Most people don't need to go to the trouble of fleeing abroad. I believe the general course of action is to 'lose' your debit card and stop opening the post.

...and then accuse the bank of mis-selling the loan, and complain that nobody will give you a consolidation loan.

Apples2

bsadmin wrote: »

The letter clearly states the possibility of legal action and future troubles for any type of loan on this property.

They are just debt collectors. They make many empty and worthless threats. You never know, someone might believe it and start making payments toward someone elses debts.

Chuck 'em in the bin.

When you say "you" got a letter, can we assume it was addressed to him but you opened it?
If it does have your name on it, we may have some work to do.

bsadmin

My name isnt on it, I just opened it as I have got similar looking letters earlier as well on his name.
This makes me realize how vulnerable is our banking system. I understand they cant trace the money through his bank account, other than that, they can just sell of their debts to these debt collectors and people just exploit the system as much as they can.
Pity.

27col

Whether the banking system is feeble or not will have no affect on you. As long as you are not financially linked to this clown. The loan was taken out by a person, not an address. Don't fret about it, it is not a problem for you.

michael1983l

27col wrote: »

Whether the banking system is feeble or not will have no affect on you. As long as you are not financially linked to this clown. The loan was taken out by a person, not an address. Don't fret about it, it is not a problem for you.

It kind of is a problem for him and every other responsible person. As it means lower posative interest rates and higher borrowing rates. It is everybodys problem.

27col

I was only referring to the immediate affect on the op, not generalising about defaulters and their affect on the rest of us.
It seems to me that keeping out of debt as much as possible is quite a sensible creed to live by. If you have no debt, you are unaffected by the affect of defaulters on the interest rate.