Advice on joint loan

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kevin557

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Post by kevin557 » Thu Aug 12, 2021 6:40 pm
HI I have just entered an IVA, my partner and I have a joint loan, we contacted natwest to arrange repayment agreement of which they did and set up, we paid and then they sent the money back, I have queried this and they said the agreement should have never been set up and now my partner is liable for the full amount, if he cannot pay then they will close his bank account down as well, his bank account is in his sole name it is not a joint bank account just the loan, any advice regarding this as it seems really unfair that my partner is affected so severely by my IVA. any help appreciated, it is currently within their complaints team

Foggy

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Post by Foggy » Thu Aug 12, 2021 6:58 pm
They are correct in that an arrangement for payment by you and your partner cannot be entered into outside of the IVA. In a joint loan, if one party defaults the other becomes solely responsible and NatWest will liase with the solvent account holder regarding repayment of the full loan --- they might agree to you simply continuing the current payments.

They are also free to decide who they provide banking services to and, if he doesn't come to an arrangement over repayment of the joint loan, they will regard him as being in default and no longer acceptable as a customer.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

kevin557

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Post by kevin557 » Thu Aug 12, 2021 8:47 pm
Hi. The issue is he is not saying he won't pay the loan off. He will, just that they are demanding the full amount be paid off. They are not allowing a payment option at all so he cannot pay monthly and basically has to clear the whole amount otherwise they will put him on default and close his bank account down.

It seems really unreasonable that they are not giving any option in regards to repayment he is paying the remainder. Over the same term only another 12 months to go so they are not losing out at all but by demanding full payment without offering any other repayment options ie to pay monthly just feels really unfair and places him in an impossible situation

Foggy

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Post by Foggy » Fri Aug 13, 2021 9:02 am
Has he actually asked for a monthly repayment option ? They may not offer it automatically because the terms of the loan will often state that full repayment is due on default. But they may consider it if actually asked.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk
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