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

Brock_and_Roll

Just a thought, is the OP's daughter actually able to make a legal claim against the ex for his share of the payments? She is not the lender and as they are jointly and severally liable for the loan, has she actually "suffered a loss"?

rizla_king

Brock_and_Roll wrote: »

Just a thought, is the OP's daughter actually able to make a legal claim against the ex for his share of the payments? She is not the lender and as they are jointly and severally liable for the loan, has she actually "suffered a loss"?

If there was an agreement between the daughter and the ex that they would share the payments equally, then she may have grounds for legal action against him. Even verbal agreements are technically binding, but would be almost impossible to argue or prove.

Unless there is something in writing between them I think any legal action would be dicey.

matttye

Brock_and_Roll wrote: »

Just a thought, is the OP's daughter actually able to make a legal claim against the ex for his share of the payments? She is not the lender and as they are jointly and severally liable for the loan, has she actually "suffered a loss"?

Yes, if they agreed to pay half each. Hopefully she can show he has benefitted from the loan and not her.

matttye

rizla_king wrote: »

If there was an agreement between the daughter and the ex that they would share the payments equally, then she may have grounds for legal action against him. Even verbal agreements are technically binding, but would be almost impossible to argue or prove.

Impossible to argue or prove in a criminal court, maybe ('beyond reasonable doubt'), but not in a civil court ('balance of probabilities.')

The burden of proof in civil courts is much lower.

rizla_king

matttye wrote: »

in a civil court ('balance of probabilities.')

True. ........

HappyMJ

rizla_king wrote: »

If there was an agreement between the daughter and the ex that they would share the payments equally, then she may have grounds for legal action against him. Even verbal agreements are technically binding, but would be almost impossible to argue or prove.

Unless there is something in writing between them I think any legal action would be dicey.

He has the car. That's good enough for a civil court. He has the benefit of the loan and isn't paying for it. If it comes right down to it one of the enforcement options is to repossess the car to pay the debt.

Brock_and_Roll

In any event, the OP's daughter should invest £40 or whatever the cost is these days in starting a MoneyClaimOnline claim (aka small claims court). The process in not particulalry swift but there is a good chance that the first notice of legal action to drop on the ex's doormat might trigger a settlement given that the ex is unlikely to want to spend money on legal advice as to how good or bad the case is legally.

If he does not enter a response, you get judgement against him, then you can start enforcement - the costs soon mount up so he would be very unwise to ignore this if he has assets or is earning.

meer53

If the daughter is going to refinance this loan, it needs to be done as quickly as possible. If the full repayment isn't being made, a default will soon be issued. Once the default is there, it will be very difficult for her to get another loan.

The bank won't really be interested in who agreed to pay what and when, it's a joint loan, they aren't bothered who pays.

Is it that she can't afford the payments or that she objects to paying the ex's half ? If she manages to refinance the loan, it will be for the full amount outstanding anyway, so she'll still be paying his debt for him won't she ?

weel82

I, myself find it disgusting that banks penalise both parties, however, to slate this parent for being worried about their child, especially if you are all parents is horrendous.

I, from what i have read, think your daughter should take her ex partner to court.

I can only imagine the worry your daughter has and hope it is resolved quickly.

Voyager2002

WorriedParent wrote: »

I

7. The cost of taking the ex to court is too great and simply exacerbates the situation, so not an option.... kneecap maybe, court action no.. I'm kidding, of course.

WP

The cost of court action against the ex would be several orders of magnitude less than that of challenging the bank on the legitimacy of "joint and several" liability. A few posts ago you seemed prepared to embark on this course of action, yet the legal issues that would be involved are extremely complex; the legitimacy of such contracts is of enormous importance to banks so they would be willing to deploy the best and most expensive lawyers in the country to defend their position; and of course they can afford to spend whatever is necessary in order to win their case. Which is what they would do, I am sure.

OTOH the cost of court action against the ex would be relatively modest, and there is a high probability of success (meaning that he would be required to pay all your daughter's costs). As the advert says, it's daft not to.