Unsecured Loan Account Open Years After Bankruptcy
MissVintage
Posts: 15 Forumite
I wonder if anybody is able to advise on this. Does anybody know the legal situation regarding having an open (as opposed to closed) unsecured loan account years after bankruptcy?
Here is the background:
I went bankrupt in January 2013. I had a number of mortgages with my ex-husband. I had problems with a lot of incorrect reporting to my credit files and harassment from the mortgage companies. I took 3 mortgage company complaints to the FOS which were upheld.
There were also 6 mortgages with Capital Home Loans (CHL). I did not make a complaint to the FOS about this company as they agreed to update my credit files properly without me needing to do that. In 2015 they started reporting incorrectly again which took months to resolve but I still didn’t take a complaint to the FOS at that time.
My ex-husband failed to pay the mortgages and the properties were re-possessed about 3 or 4 years ago.
Until recently, my credit files showed the 6 closed secured mortgage accounts. However, in October 2018 some new ‘unsecured loan accounts’ with CHL also began to appear. This would, I expect, be made up of any shortfall and CHL’s fees. I was very annoyed as these new unsecured loans are the sole responsibility of my ex-husband. I wrote to CHL and gave them 28 days to correct my credit file. They made some attempts but there were still errors. I gave them a further 28 days and told them that if they didn’t resolve this issue I would take a complaint to the FOS and the ICO. They didn't resolve it.
I have recently made the complaint to the FOS about CHL and I have also reported a data breach to the ICO. I copied CHL in who then miraculously removed the incorrect reporting from my credit file.
From CHL’s response to me it is clear that following them enforcing their security they have opened JOINT unsecured loan accounts in the name of my ex-husband and myself. This is debt which was included in my bankruptcy which appears to have been created after my bankruptcy. I have complained to CHL that they are in breach of the Insolvency Act 1986 Section 281(1) and 382(1) and therefore in breach of GDPR in showing data on my credit file which is the sole liability of my ex-husband.
Although my credit files are now not showing any CHL errors, I am very angry that they have an open file with my name on for debt which I have no liability for. Surely these accounts should only be in the name of my ex-husband?
Does anybody have a legal stance on this? Have I interpreted the Insolvency Act correctly? I can’t seem to find any further information on this issue.
Thank you.
Here is the background:
I went bankrupt in January 2013. I had a number of mortgages with my ex-husband. I had problems with a lot of incorrect reporting to my credit files and harassment from the mortgage companies. I took 3 mortgage company complaints to the FOS which were upheld.
There were also 6 mortgages with Capital Home Loans (CHL). I did not make a complaint to the FOS about this company as they agreed to update my credit files properly without me needing to do that. In 2015 they started reporting incorrectly again which took months to resolve but I still didn’t take a complaint to the FOS at that time.
My ex-husband failed to pay the mortgages and the properties were re-possessed about 3 or 4 years ago.
Until recently, my credit files showed the 6 closed secured mortgage accounts. However, in October 2018 some new ‘unsecured loan accounts’ with CHL also began to appear. This would, I expect, be made up of any shortfall and CHL’s fees. I was very annoyed as these new unsecured loans are the sole responsibility of my ex-husband. I wrote to CHL and gave them 28 days to correct my credit file. They made some attempts but there were still errors. I gave them a further 28 days and told them that if they didn’t resolve this issue I would take a complaint to the FOS and the ICO. They didn't resolve it.
I have recently made the complaint to the FOS about CHL and I have also reported a data breach to the ICO. I copied CHL in who then miraculously removed the incorrect reporting from my credit file.
From CHL’s response to me it is clear that following them enforcing their security they have opened JOINT unsecured loan accounts in the name of my ex-husband and myself. This is debt which was included in my bankruptcy which appears to have been created after my bankruptcy. I have complained to CHL that they are in breach of the Insolvency Act 1986 Section 281(1) and 382(1) and therefore in breach of GDPR in showing data on my credit file which is the sole liability of my ex-husband.
Although my credit files are now not showing any CHL errors, I am very angry that they have an open file with my name on for debt which I have no liability for. Surely these accounts should only be in the name of my ex-husband?
Does anybody have a legal stance on this? Have I interpreted the Insolvency Act correctly? I can’t seem to find any further information on this issue.
Thank you.
0
Comments
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What happened with the fact that your name was jointly on the mortgages in your bankruptcy? Were the properties that the mortgages were for included as assets in your bankruptcy?
You were jointly liable for these mortgages, at which point did your ex buy you out and your name was removed from the mortgages?
From what you have said the mortgage were in arrears after you were discharged from your bankruptcy... is that right? And then the properties were repossessed after you were discharged. So I think the unsecured debts are post bankruptcy debts?0 -
Hello, yes the mortgages were of course included in my bankruptcy.
The OR wasn't interested in any of the properties as they were all in negative equity.
My ex didn't buy me out and my name wasn't removed from the mortgages.
My liability for the mortgages ended on my discharge from bankruptcy when I was released from all my debts (as per Insolvency Act 1954).
Any arrears on the mortgages after my discharge were the sole responsibility of my ex-husband as I was no longer liable.
The unsecured loans for any outstanding balance and fees are certainly included in my bankruptcy (see Insolvency Act 1954 sections 281(1) and 382(1). You are mistaken in saying they are post bankruptcy debts. The debt for the mortgages was entered into long before my bankruptcy.
My quibble is that CHL still have open accounts in my name that I believe is in breach of GDPR as they are the sole responsibility of my ex-husband. CHL are fully aware that they cannot require me to pay these loans and they have not requested I do so. I also have 3 FOS final decisions in similar cases ruling that the mortgage companies are not to contact me or hold me liable for these debts which are included in my bankruptcy. These other companies are not an issue as they don't keep "accidentally" reporting things to my credit files for debts my ex-husband is responsible for.0
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