Help needed for bank account crisis.

dogegg

My partner had an overdraft of approx. £1000. She arranged a payment plan with the Halifax. I have just found out that she broke the payment and the bank offered her a loan to pay back the overdraft which she accepted. She then didn't keep up the repayments on the loan. A recovery agency are now saying that she owes £2800, £1000 for the original debt, £1000 for the loan and £800 in charges. This doesn't seem right to me and now that we are married I am liable for this debt. The recovery agency have said that they want a payment in full by the end of the week but this is obviously not possible.

Please, has anybody got any advice on how to reduce the amount owed and the best way to approach this problem?

Floss

Can I just ask why you have become liable for the debt, by now being married, when your wife took on the original debt? Is any of this in your name or in joint names?

peb

Being married does not make you liable for the debt. It seems that the bank are trying to get their £1000.00 twice; surely the loan repaid the overdraft and therefore there should just be the loan to repay - unless she has run up the debt agin. I would also want a detailed breakdown of the charges before coming to an arrangement.


Good luck

dogegg

I assumed that if this debt was to continue as my wife cannot pay then ultimately I would be responsible. Is this not the case? My name is not involved with it.

Also would like to help her pay it, just not an exaggerated amount.

Is it best to speak to the bank or the debt recovery agency?

GeorgeUK

Contact the bank in the first instance. They may say they cannot discuss it with you as you were not the account holder though. If this is the case then that answers part of your question. How can you be liable for something they will not discuss with you.

When did all this happen? Could the debt be statute barred?
Do you know if the DCA is acting on behalf of the bank or if the bank has sold the debt. Get a copy of your (and your wife's) credit history - free at experian. Are there accounts on there that should have been closed?

poppy10_2

You can't be liable for your wife's debts unless the loan was taken out jointly.

dogegg

Sorry GeorgeUK, excuse my ignorance but what does statute barred mean?

poppy10_2

If a debt is over 6 years old and no attempt has been made by the creditor to chase the loan over that period, then the loan is statute barred and you don't need to pay it. Make sure you don't acknowledge you owe them anything.

dogegg

Thanks, the debt is more recent than that.

GeorgeUK

Something else that some DCA's do is buy debts that the banks has written off. That's why i was wondering if you knew if it was the bank that the DCA was acting for, or on their own behalf.

Definately need to contact the bank to see why they are claiming for the original amount as well as the loan. You should at least be able to make progress from there. It isn't the case that your wife got the loan to pay for the overdraft, but also spent that is it?

Edit: Just a thought - have you started reclaiming CC charges yet?
Also, for a debt of this size, could you get a CC and do a 0% BT? That may cut down the amount of interest you may need to pay on it. (Although for a loan it may need to be a super balance transfer)