probs re joint debt after the big B

pickingupthepieces

Hi,I got a lot of help here preparing for bankruptcy,without it I would have been lost so many thanks to the posters

Have lost my original log in details so had to re-reg

I've been sat on tender hooks for the last year year waiting on my automatic one but it now looks like I have been discharged for maybe 4 months or more without anyone deciding to let me know! I was so scared I was afraid to ring the OR to ask in case I made matters worse

I also had a fear of looking at my credit record as I just didnt want to see it,but as my auto discharge date was approaching I decided I had to deal with it

Have studied all the posts about writing to creditors and asking them to stop applying the defaults & removing the pending balances they still hold against me etc. I'm fine with that.

My problem lies with a joint loan with other half. I always knew this would have to repaid as it was just I going bankrupt & he would be responsible for it. This loan was up to date,exhorbinate interest I must add so little coming off balance,but it was a DD on my current account,so obviously once I went bankrupt payments were missed,

The company contacted us after 2 missed payments,I assume by then they were aware of the situation as I personally wrote to them advising them,the letter stated if the situation was not resolved it would result in adverse credit score & possibly default,

My credit score at this stage was in a mess,so little odds to me, but to try protect hubbys I rang them,the same day,they wanted around 400 to bring account up to date,but were quite nice about it and agreed that if he resumed normal min monthly payment under the circumstances interest would be frozen & they would not expect the arrears,so I agreed yes,he will do that & gave them a date payments would resume

For the next few months payments were made as agreed,he received a letter about last dec saying that since agreed payment had been received for several months on time they were prepared to update his credit file as long as it continued,

Fine I thought and payments have been continued as arranged

Was devasted though tonight when checked his record & found they have given him a default notice back at the time the agreement was made! Also they have obviously been applying interest as he's lost over half what he has paid in interest rates judging by the balances they are showing,

I feel there is something underhand here as he receives no statements or correspondance from them,there has not been 1 since I went bankrupt except for the 2 letters

On a positive note to anyone considering bankruptcy and worried I will be happy to tell them how all my worry was for nothing ,I think it works a bit differently in northern ireland so hopefully that may help someone

wherediditallgo

First of all, congrats on your discharge.

Regarding the default, I think that, unless you specifically ask them whether a default will go on the credit file & about the interest being frozen, & get written assurances on both, quite a few companies will do this. From their point of view, payments were late & there were arrears, & though you came to an agreement to sort them out, until the first payment was made the account was in default. Also, you went BR so he's their only chance of getting their money. You/he can write to them to complain about the default & the interest charges & you've got nothing to lose by doing that, but they may refuse to budge if you didn't get either of them in writing. Sorry.

allofadither

Hi PUTP,

I had a similar problem with Capital One who having agreed to accept reduced monthly payments thru a period of unemployment defaulted the account anyway but did not inform of this. :mad: Even though I maintained the agreed arrangement they also recorded each of these payments as being late. :mad:

They did not respond to my phone calls or letters so I contacted the financial ombudsman who agreed to look into my case. The FSA said Capital One did not have a legal obligation to notify me of the default but they still considered that they had acted inappropriately and put misleading information on my credit file given that I had maintained the agreed arrangement satisfactorily. The FSA insisted Capital One removed the default and all references to payments being late. :T It took several weeks to get it corrected but it was worth the effort.

pickingupthepieces

Hi,thanks for your replies,

I am still so angry with them at their underhand tactics,the account had been running for about 10 years,in that time not one missed payment,not until I went bankrupt & 2 were missed as they were DD's from my currrent account which was obviously closed & I wrote straight away after filing and explained the situation,awaited their response & once I got that rang them and arranged a monthly date when they would get their normal payment,

I asked them twice was the interest definately frozen & was told,yes,interest was always frozen under the circumstances,

The interest charge they make was always over the top anyhow,about a third of actual payment came off balance each month! At this rate its going to take maybe 10 years to pay off instead of my expected 3 or less

I intend giving them a call tomorrow & asking what they are playing at,am thinking if they dont agree to remove the default on his I will give them a more valid reason to default it,maybe if they think there is chance payments will stop it may make them honour what they agreed to?

pickingupthepieces

another question i must ask,we also had had an other joint current account with a bank at the time,OR froze that,then took half of the balance,wasnt my money ,it was hubbys but we werent so much bothered,it was only a 100 or so in it

Just wondered now can I unfreeze that (and by which means) and either use the balance or get the balance withdrawn...or will they just close it. I didnt owe them any money

wherediditallgo

It's not the OR who freezes your account, it's the bank. The OR will have informed them of you going BR, whereupon the bank freeze the account to give them time to deal with further info from the OR and/or to allow them to deal with your account especially if you owed them money. Once you've gone BR, all accounts you had on that day become the property of the OR, & he can take all or part of any balance towards servicing your debts.

If you want the account unfrozen & any balance sent to you, you need to write to the OR & ask him to contact the bank to let them know he has no objection to you using the account and/or having any balance remaining in it. Some banks automatically close the account and send any money remaining in it to the OR, & some will send it to you (in such cases, you need to tell the OR you've received the money & ask if you can keep it). However, you still need to go through the OR as the bank won't release the funds to you because it's no longer your account.

pickingupthepieces

Rang the company this morning,what a surprise,they say there was never an agreement to freeze the interest,in hindsight it is a real shame I didnt think of asking for it in writing at the time,we live and learn. Twice I was told it was by 2 individuals working for the department

They also say they have no record of placing a default on both accounts,this seems strange. They apparently checked backed through all their records and said no,they didnt do it. I even gave them the date...but nothing

Asked me to fax copies showing they applied these defaults ,which I did,but no response as yet despite advisor saying she would ring me back this afternoon once she consulted with manager

wherediditallgo

Sorry to hear about the interest situation - maybe you could take the matter up at a higher level, but without it already been supplied in writing or you having a recording of the conversation, it's going to be very difficult to get them to change their mind. And if it's company policy not to freeze the interest, that's more likely to work in their favour than yours.

As for the defaults, keep on at them about that. It does seem unfair to penalise you twice, but if they did it they should have a record of it & should be prepared to give you an explanation for doing it in writing. Once you've got that, then you can look into taking the matter further.

pickingupthepieces

I'm well gutted about the interest still being applied,its a real let down after thinking we could be debt free once that was cleared but now its going to take a lot longer than expected,

In saying that its a lot better than situ I was in this time last year,so suppose I shouldnt moan,

I will fight on to remove hubbys defaults,he doesnt desreve it,i do

But at end of day i can relax,just 1 loan to pay,excellent!


Before it was a absolute nightmare!

pickingupthepieces

Still no response from company,I wonder if I can insist they pull up phone records to prove what was said? anyone know?

wherediditallgo

pickingupthepieces wrote: »

Still no response from company,I wonder if I can insist they pull up phone records to prove what was said? anyone know?

I very much doubt it, I'm afraid. The usual phrase while you're waiting to be put through to someone is "This call may be recorded for training & monitoring purposes...". You'd first have to prove that the calls were actually recorded in the first place before you could even think about getting to listen to the material. If they say the calls weren't recorded, you're stuck at first base.

Even if they did let slip that the calls were recorded, it would take legal action via a solicitor to get them to say whether the recordings still existed. Then you'd probably need a court order of some kind to get them to hand them over. All of that would cost you a lot of money, for which you'd be unlikely to get legal aid.

And let's not forget that, even if the calls were recorded & even if they did make comments about the interest and/or defaults within that call, they can still argue that the person you spoke to wasn't in a position to make that decision. Thus, when a supervisor/manager looked at the matter they decided it couldn't be done, which is why they didn't confirm anything to you in writing. If your call was taken via a call centre rather than by the company's own staff in its own offices, that argument is likely to hold more weight than yours.