Loan Default

Knightowl

Hi,
Seeking advice and a way forward.

My Wife in a previous marriage took out a loan in 2012 with the Halifax.

As part of their divorce settlement her previous husband agreed to indemnify her from this loan.

He of course defaulted , in 2014 without advising and her credit record is now in default which affects us both. The Halifax said the indemnifying means nothing.

The loan was initially circa £11,000 with interest £16,000. Prior to the default they had paid £5,000.

The Halifax chose to appropriate the £5,000 and insist £16,000 is still owed.

Her ex has since paid a further £1,800.

Were they right to revert the loan back to the £16,000 ?

I have noted there are no physical signatures on the loan agreement .
Any advice please.

Thank you in advance

Ben8282

What you say above makes very little sense.
I do not believe Halifax pre-loaded the interest.
I do not believe Halifax gave your wife a loan with monthly repayments less than the interest payable in a month.
If the initial loan was for 11k, after 2 years of payments the balance would have reduced. 5k of payments over 2 years would imply a monthly repayment figure of approx. £200.
Your statement that Halifax 'appropriated' the £5k and require repayment of £16k defies belief.
Any private arrangement made between your wife and her ex-husband with regard to the repayments of this loan are a private matter between the two of them. She took out the loan in her name and she is responsible for it.
It is difficult to give advice when the story simply is not plausible. Perhaps you should double check the facts here.

Knightowl

I got my hands on the paperwork for the first time last night. Up until then we were being told by her ex with a vagueness.

Oddly the bank have an arrangement with her ex and although they have defaulted my wife they wont talk to her as they say its in breach of her ex's data protection, that I do know is true.

Duration of the agreement was 86 months and yes your right payments are circa £200 a month.

As for the "defies belief" her ex swears that this is the case I too thought it "highway robbery" and does not make sense. Thne bank as I stated previous wont talk to my wife as there dealing with her ex husband,

glentoran99

Knightowl wrote: »

I got my hands on the paperwork for the first time last night. Up until then we were being told by her ex with a vagueness.

Oddly the bank have an arrangement with her ex and although they have defaulted my wife they wont talk to her as they say its in breach of her ex's data protection, that I do know is true.

Duration of the agreement was 86 months and yes your right payments are circa £200 a month.

As for the "defies belief" her ex swears that this is the case I too thought it "highway robbery" and does not make sense. Thne bank as I stated previous wont talk to my wife as there dealing with her ex husband,

If your wife is named on the loan, and therefore has had a default placed against her on her credit file then they have to speak to your wife

MEM62

Knightowl wrote: »

My Wife in a previous marriage took out a loan in 2012 with the Halifax.

Then they have no choice but to deal with your wife.

Much of the in formation you have does not add up. I suggest that the information from the ex is not reliable and that a visit to the Halifax is in order to clarify things. IMO They either address the matter with her or they absolve her of any responsibility and expunge her record.