What can you do with a joint loan when partners split?

claret_mike

I would advise her to speak to her HR team at the bank to explain the situation and to seek their guidance. If she is already employed by them and she speaks to them rather than them find out by doing a credit check, then it may not necessarily mean that they will get rid of her.

As her employer, the regulator asks them to ensure that their staff are fit and proper for the role. If they can demonstrate that the employee approached them to advise of potential issue and she can evidence that she has acted proper throughout, then there is a strong possibility that she will be ok to work with the bank still.

It's only if the bank conduct a credit check, see defaults left right and centre and then have to approach the employee that they struggle to say that they are fit and proper on the basis that they could perceive as being deceptive and hiding things. See if she can get a hold of the employee manual/procedures - it may say something around fit and proper that they understand from time to time that financial difficulties arise and if this is the case you need to speak to HR. Just to default is far worse than to speak to the lender and enter a DMP with them. It demonstrates you are prepared to pay back what you borrowed.

As a business man, surely you know how to chase up debts, small claims court. Can you not assist with the shortfall and you take him to court? If he is in the same industry too, trust me, he will want to pay. For all you know he could think, she can afford the full payment and I know she cannot afford to default, I will let her pay it...

At the end of the day, as others have said, to ruin a career and put your daughter back into a job market that is less than favourable, it's not good advice at all...

somethingcorporate

I agree, you sound petty and vindictive and your advice is terrible. You'd rather punish the ex at your daughter's expense? just wow.

Why not do what you can to keep the loan propped up so it doesn't harm your daughter, forget about the ex - he is now irrelevant. Your daughter needs to service a loan SHE signed up to and agreed she would cover the full loan when she accepted the terms.

I'm really surprised you needed to ask this question on the board at all, your daughter works in a bank and should be able to tell you how these things work.

sharp82

Also to point out, the loan amount will increase with default charges, debt collector fees etc. So she'll end up paying more.

You didn't mention if the ex is working? If not, the bank are likely to aggressively pursue your daughter.

How much is the loan/repayments? Can you not help her out? I know its against your principles to help the ex, I understand that but harming your daughter career and credit rating does seem a little odd.

Only thing you and your daughter can do, is suck it up and pay it. Put it down to one of lifes cruel lessons

WorriedParent

Now we're talking, this is more like it. Initially there were no options, but now there's some discussion about compromise, extending the term to make it more manageable etc... all very encouraging, so thanks again.

I don't wish to defend what some of you would consider indefensible, nor do I seriously wish to advise my daughter to deliberately default, but as I have said right from the start, she has no desire or intention to do so. But contracts can rightly be challenged when they totally conflict with common sense, or fairness, and this forum has built its entire reputation on doing just that, challenging unfair decisions and practices, especially when it is with good intention for all parties at heart.

The issue here is that the ex has taken a deliberate action and that makes them the bad guy, not my daughter or me for trying to seek unbiased advice on what can be done.

The overwhelming difficulty is trying to find that advice and I appreciate all the response and guidance and yes, even the criticisms.

WP

imoneyop

WorriedParent wrote: »

Now we're talking, this is more like it. Initially there were no options, but now there's some discussion about compromise, extending the term to make it more manageable etc... all very encouraging, so thanks again.

As a starting point, she could try sending the ex a letter before action for 50% of the outstanding loan amount. If she can get his half of the loan cleared (either through him voluntarily paying or through small claims) then she can talk to the bank about extending the term of the remaining loan to make it affordable for her.

John1993_2

WorriedParent wrote: »

contracts can rightly be challenged when they totally conflict with common sense, or fairness

There's nothing unfair, though, about expecting this one to be honoured. A joint loan means that both parties agree to be liable for the whole debt. No-one's been cheated here, your daughter got the loan, as agreed, and it's fair that she pays it back.

As others have said, how about you pay it back for her?

matttye

WorriedParent wrote: »

Now we're talking, this is more like it. Initially there were no options, but now there's some discussion about compromise, extending the term to make it more manageable etc... all very encouraging, so thanks again.

I don't wish to defend what some of you would consider indefensible, nor do I seriously wish to advise my daughter to deliberately default, but as I have said right from the start, she has no desire or intention to do so. But contracts can rightly be challenged when they totally conflict with common sense, or fairness, and this forum has built its entire reputation on doing just that, challenging unfair decisions and practices, especially when it is with good intention for all parties at heart.

The issue here is that the ex has taken a deliberate action and that makes them the bad guy, not my daughter or me for trying to seek unbiased advice on what can be done.

The overwhelming difficulty is trying to find that advice and I appreciate all the response and guidance and yes, even the criticisms.

WP

It may not be fair or just, but them's the terms she agreed to when taking out the joint loan. They should each have borrowed half of the money in separate loans if they wanted it to work the way you describe.

HappyMJ suggested in post #3 (http://forums.moneysavingexpert.com/showpost.php?p=62919113&postcount=3) that your daughter can take the ex to court for his share of the loan. That is the way of bringing some fairness into the situation without jeopardising her career.

You say you're a businessman. Is there any way you can help her out financially with this in the short term while she figures out a way of making it work?

Defaulting on the loan is really not a good idea, for reasons already mentioned by others.

HappyMJ

Just how much is this loan for anyway? What are the monthly repayments? Why can't she manage the loan?

WorriedParent

There may be a possible breakthrough here, our company lawyer believes there is precedent where the two borrowers can indeed be separated, especially since the ex has now married.

He is now investigating that case to find what legislation was actually used to force this action, so here's hoping.

Meeting with him on Monday to discuss. :-)

WP

WorriedParent

The loan was for consolidation approximately £20k in total. Less than £5 of that was for my daughters purposes, while the ex got a shiny new car...