idem Servicing - Ex partner's debt

teffers

I have a friend and their ex-partner, of around 15 years ago, went bankrupt around 8 years ago and then he (my friend) started being chased by idem Servicing for payment of a loan (in the ex-partner's name but my friend was the guarantor) and a joint account.  He was told by idem that he owed the money now and he simply started paying the debts off slowly.

8 years later they are still paying their ex-partner's debts off.  He's on a low wage now and money is more difficult than ever.

I realise that my friend has spoken to idem and probably unwittingly accepted the debt and has made payments etc.  They're unsure to what exent they have 'accepted' the debt however.

He's sent the 'prove-it' letter and received the response that they have requested the original credit agreements but in the mean-time as he has previously spoken about the debt and also made payments, they don't accept that he doesn't have 'knowledge of the debt' so they intend to continue seeking payments.

I'm fully aware it was a long shot in the first place but is this game over for my friend in terms of trying to get this stopped ?  Nothing has ever appeared on his credit reference regarding this.

TLDR: Basically put two people in a relationship (not married) one of them needs a loan, my friend agrees to be a guarantor, I think as a lot of people would do for their partner, (and is told they have to be added to the other person's account for this), they split up and 7 years later they decide to go bankrupt and now he has beeing paying that debt of for 8 years (paid around 8K so far).  idem say that because they've spoken about the debt and and payments they will continue to seek payment.

Are the original credit agreements the key or is the fact that it's been discussed and payments have been made the final nail in the coffin ?

Thanks in advance.

bargainbetty

If he was the guarantor, he is liable for the loan. That is the purpose of having a guarantor on the loan, because they tend to be used by people who have previously had credit issues. A joint account would also hold both parties jointly liable. 

Sorry, I know it's not what he wants to hear. 

teffers

Thanks bargainbetty for the reply.  I think he realises he's technically liable as he signed as a guarantor many years before the relationship break-up and subsequent bankruptcy.

What he's really looking for, is information as to the enforceability of the debts in relation to the creditor not being able to provide the original credit agreements showing him as liable for his ex-partner's debts and, whether previous payment removes the responsibility for the creditor to provide the CCA.

I'm tempted to suggest he replies stating he won't make any further payments until the CCA request is satisfied and they provide copies of the original agreement.

fatbelly

I'm not sure a guarantor has the legal right under CCA s77-9 to see the agreement. I'd like to be wrong about this.

However there has been a lot of movement in guarantor complaints including referring those to the FOS.

Debt Camel has done a lot of work on these. It's worth reading her writings and maybe emailing her.

https://debtcamel.co.uk/amigo-complaints-by-guarantor/comment-page-1/

MEM62

teffers said:

Thanks bargainbetty for the reply.  I think he realises he's technically liable as he signed as a guarantor many years before the relationship break-up and subsequent bankruptcy.

He is not technically liable - they don't have him on a technicality.  He is liable because he agreed to be.  There are no get out clauses based on the relationship failing or similar changes in circumstances - otherwise the guarantee would be meaningless.  The fact that the lender required one in the first place was because they considered that his ex was likely to default.  Unfortunately, your friend was incorrect when he thought he knew better. 

It is worth seeing what else the lender comes back with but I think he might be sunk here.  Do you know what happened in the 7 years between them splitting up and the ex going bankrupt?  Could it have gone SB in that time? Also, how big was the original loan and did it default?    

sourcrates

There is no statute of limitation on a guarantors obligations unfortunately, the fact the debtor went bankrupt absolves them of liability for the debt, but not your friend.

In the same vein, they don`t have the legal right to ask for information under sec 77/79 CCA either, as they are not the debtor.

His best bet is go with the advice from fatbelly, and see what transpires.

teffers

Thank you fatbelly and sourcrates for your replies.  We'll look at the Debt Camel pages and possibly look at that route.

In the meantime I think I may suggest a low F&F in an attempt to clear the debt as it has dragged on far too long.

TripleH

Thanks Sourcrates. I had (wrongly) assumed guarantor loans were a way of technically charging sub prime rates to those with better credit records. Its strange that whilst you are liable for the loan, you're not allowed any information on it (under the s77 79 cca).

Peklams

I have issues with idem trading as paragon, a company called resolvecall has sent a text saying they are visiting my property, now I've informed idem/paragon of change of surname several times, they still insist on sending paperwork in my previous name, it was a secured loan which they bought from Picture, I've not paid a penny for 7 years to Idem/paragon it's not on any credit file it's not anywhere only on house land registry in my dead husbands name not mine, can resolvecall debt agency visit the property.

fatbelly

Resolvecall have no powers to do anything. They can be safely ignored

ManyWays

What happened when your husband died, who was the executor, did you inherit his share of the house?