Advice regarding joint loan liability

louisiannie

Hello to all,
Fairly new to site, amazed by positive support, advice and genuine care shared. I have 'lurked' as they say and now find confidence to post.

Looking to find resolve for situation, so here goes (gulp)... I rather stupidly agreed to my ex-partners request to change my personal account to a joint account, unaware at the time of his past financial history and elements of his personal history.

To cut a long story short...a loan was taken out against the account, we separated not long after in extremely difficult circumstances. He initially agreed to take full responsibility for the loan, however as I later discovered he failed to do so....leaving me with CCJ. The debt has been sold on twice. I am on a low income, have been paying an arranged minimum payment. I recently received a letter arrived that indicated to me that his name had been removed from the debt. I add that the letter did not inform me of this, I was not informed in writing of this. When I spoke to the DCA, they simply said that as I had been paying off the debt and as the account was originally in my name I was now solely responsible. Dumb struck! And yes, feeling very dumb at having been convinced by the ex-partner that loan was sensible option - at the time I thought it was for is personal career development...more fool me! Bah! We live, we love, we learn.
In my mind I am responsible for half the loan, which I have almost paid off...however the current situation presents a different perspective. I have considered requesting if a settlement agreement would be considered by DCA.

Guidance, thoughts and advice greatly appreciated.

Gosh, can't quite believe I have managed to share this.

chez000

Aremyou aacutally jointly responsible for the loan or was it just coming out of a joint account? are you named on paperwork have you signed agreements?

Is it a CCj you have or is it just with debt collectors - reason I ask debts usually stay with whoever obtained the CCJ and dont get passed anymore.

If you are actually jointly responsible then you are both responsible for the full loan not half each.

Might help if you can post some of the paperwork you have

CCCS_Matthew

Hi Louisiannie,

Sorry to hear about your situation.

If the debt was originally a joint one it will fall under something called "joint and several liability". Unfortunately, the creditor can chase either party for the full amount of the debt. If you have paid off half of the outstanding balance, legally, you are still as responsible as your ex-partner to pay off the remaining half.

You mentioned you have received a letter mentioning he has been taken off the agreement. The only time that would happen to my knowledge is if your ex-partner has been made bankrupt. Who did you receive the letter from? If it was from a DCA I would to suggest to take what they have said "with a pinch of salt". If they have lost contact with your ex, they may try to back you into a corner trying to suggest he is no longer liable for paying it.

You also mention the debt resulted in a CCJ but you are still discussing the debt with the DCA. What arrangement was made through court regarding the debt? Did you definitely receive court paperwork in reference to this particular debt?

Regards,
CCCS

RAS

louisiannie wrote: »

I rather stupidly agreed to my ex-partners request to change my personal account to a joint account, unaware at the time of his past financial history and elements of his personal history.

To cut a long story short...a loan was taken out against the account, we separated not long after in extremely difficult circumstances. He initially agreed to take full responsibility for the loan, however as I later discovered he failed to do so....leaving me with CCJ. The debt has been sold on twice. I am on a low income, have been paying an arranged minimum payment. I recently received a letter arrived that indicated to me that his name had been removed from the debt. I add that the letter did not inform me of this, I was not informed in writing of this. When I spoke to the DCA, they simply said that as I had been paying off the debt and as the account was originally in my name I was now solely responsible. Dumb struck! And yes, feeling very dumb at having been convinced by the ex-partner that loan was sensible option - at the time I thought it was for is personal career development...more fool me! Bah! We live, we love, we learn.
In my mind I am responsible for half the loan, which I have almost paid off...however the current situation presents a different perspective. I have considered requesting if a settlement agreement would be considered by DCA.

hi Louisannie

Sadly, these boards are full of people who got caught like this, and by paying a samll amount they have rendered themselves liable for the lot.

As Matthew says, some of the things here do not quite tally so you may be getting a story from the DCA.

Have you

Confirmed that there is a CCJ outstanding on this?
Sent CCA request to confirm that the DCa have the right to collect the debt?
Checked whether OH has been made bankrupt?

chez000

If you want to check if your OH is bankrupt you can check on this website
http://www.insolvency.gov.uk/eiir/

louisiannie

Intially...thank you for the responses, which have been helpful.

The loan was in joint names, we both signed credit agreements.

Much of the paperwork was 'hidden' from me at the time, the original agreement and additional paperwork was apparently destroyed by ex-partner. I subsequently managed to get copies of CCJ issued to us both.

Have checked and it does not appear that he has been declared bankrupt.

RAS, I don't quite understand... 'Confirmed that there is a CCJ outstanding on this?'
I assumed that once there was a CCJ that was 'that'.
It was when the original DCA contacted me that I became aware that ex-partner was not dealing with outstanding loan as agreed and therefore a problem.

Never having been in this position before I feel a tad ignorant, however will steal myself to call DCA and speak to them personally. I was just rather disturbed/concerned/shocked that there was no written documentation sent to inform me that I am now in the position that I appear to be solely responsible for debt.

Your 'inputting' has been greatly appreciated!

louisiannie

I forgot to add that the realisation that ex-partners name had been removed was on envelope from DCA containing payment slips.

RAS

Loiuseannie

Unless OH has been made bankrupt, his name cannot be removed from a jointly owned debt, as far as I know. You really do need proper advice on this. Try the National debtline or Community Legal Advice here http://www.moneysavingexpert.com/loans/debt-help-plan#help

I would also think there may be (very maybe) scope to challenge the CCJ if you were not advised of the proceedings. Alternatively you may be able to challenge the payment arrangements. So please get proper advice.

As for the paperwork, your are legally entitled to see copies of the originals which must be provided by the creditor, whether or not they are the original one.

chez000

I not 100% that there is a CCJ on this debt not that the lack of one reduces your liability, but the lack of one means the creditor/DCA hasnt been to court about the debt and therefore can not enforce the debt with bailiffs etc.

When a creditor/DCA applies for a CCJ defense packs are sent to all who are liable so you and your OH would have recieved 1.

If a defence pack is not returned to the court then the creditor would most likley have got a forthwith judgement by default, which would mean that all the money owed was payable in 14 days or they can use bailiffs etc to recover,

If the defense pack is returned to court then then an offer to pay the debt by installments would be made and providing it was reasonable accepted, if all repayments were kept to then no enforcement action is possible.

It is possible to apply to court to have a forthwith judgement made payable by instalments.

So the fact that you are paying in installment suggests that someone has either filled in a defense pack or applied to court to very the CCJ if this wasnt you it must hve been your other half.

If OH had negotiated CCJ to be paid by installments then the company would be pursuing him (you would still be liable) as he would have at least made some payments to them.

your OH not being on payment slips only proves that the payment slips the DCA has sent have been printed only in your name, he may have recieved similar.

Who is the DCA and original creditor

louisiannie

Unfortunately the DCA has been unable to trace him. It comes to light this is not the first time he has behaved in such a manner.

Original loan TSB. DCA are London based and I must say have been pretty good, previous DCA not so empathetic.

Just feel like a bit of a mug....question of heart ruling head me thinks...anyway onwards and upwards.

louisiannie

Have been in contact with DCA again today, they agree that an error may have been made and are looking in to it for me...although yes, I am still liable.
Thanks to all for input....the simple act of sharing helped.