Credit union loan agreement

Discussion in 'Payment Protection Insurance claims' started by Jennywren, Jan 19, 2015.

  1. Jennywren

    Jennywren New Member

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    I was approved A loan with the credit union a few years ago, and I'm just looking to get some advice about it.
    The loan is solely In my name, however, when I was applying for the loan I was only working part time so they had to take my then husbands wages into account in order for the loan to be approved.
    I was literally working 16 hours a week at the time and I was approved this loan which was quite a lot of money, due to the fact that my then husband earned a good wage.
    It states on the loan agreement my ex husbands name, monthly wage and place of work, yet he isn't liable legally to repay any of the loan, and he hasn't signed the loan anywhere
    They also sold me RPI on the loan but it would only come into effect of my then husband was out of work.
    So essentially they approved a loan that is solely in my name, but on the basis of someone else's wages, and the sold me payment protection insurance that would never come into effect for me, the person who has the loan!
    as my husband and I have divorced since, I am left with this loan but he has all the contents this loan paid for. He refuses to pay it and they say he isn't legally liable.
    I'm wondering if this loan agreement seems legit?
    Any advice would be greatly u appreciated
     
  2. Raging Bull

    Raging Bull Frequent Poster

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    It does seem very odd but not sure where you can go with this to be honest. You cant take a CU case to FSO...there is nor much you can do about the loan but you could perhaps take a case against the CU in small claims court seeking return of monies paid on insurance premium...you would be claiming it was "bad service" selling you something you cant claim on
     
  3. Jennywren

    Jennywren New Member

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    9
    I'm just wondering if my ex husband can be hd liable for his half of the loan as his wages were taken into consideration and recorded on the loan. The loan agreement is In my name but his name, wages and workplace are stated on it.
    The loan was both of ours to do our house up when we first bought it, I don't actually know why it was only in my name.
     
  4. 44brendan

    44brendan Frequent Poster

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    Logic would conclude that a person cannot be held liable for a loan that they were not a party to, either by way of being a borrower or a guarantor. Without wishing to be harsh you did borrow this money and your post indicates that you were the sole applicant and beneficiary of the funds. There is nothing either illegal or improper in taking both incomes into account that will absolve or reduce your liability to repay. Separately you may be in a position to take a case against your ex-husband if he has beneffitted from the loan proceeds, but the CU would not be a party to any proceedings. Speak with a solicitor on this issue.
     
  5. Jennywren

    Jennywren New Member

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    9
    Tanks for your advice.
    I completely understand and accept that I have borrowed this money. I'm not disputing that at all.
    My issue lies in the fact that my ex husband possesses all the items this loan paid for, yet I'm the one left to pay it off.
    Could I just clarify what u mean by "a person could not be liable for a loan they were not party to, either by way of being a borrower or a guarantor"?
     
  6. 44brendan

    44brendan Frequent Poster

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    2,540
    Liability means that you are directly responsible to meet loan repayments and can be sued if you fail to meet the terms of the loan agreement. In your case the loan was issued to you as a sole borrower and in order for your husband to be liable the loan would either be in joint names or he would have signed a guarantee for the amount. As neither case applied in accordance with your post you are the only liable party to the loan agreement.
    As I mentioned previously you will need to consult your solicitor in order to assess whether any action can be taken against your ex husband in respect of the posession of the items which were purchased by the loan proceeds.
     
  7. Gerry Canning

    Gerry Canning Frequent Poster

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    Jenny Wren,
    In relation to RPI .
    RPI is normally another Payment Protection Type (PPI) product.
    I cannot see how you could have an RPI on your loan unless ex-hubby signed on loan with you? .
    Also I understand RPI must,( if utilised) come off the loan but the person that may claim ie ex-hubby, must be on the loan?
    Maybe some AAM credit Union poster can contradict me please?
    If I am correct (I think I am) the Union have sold you a product that you could not benefit from , ergo a straight miss-sell ,
    I suggest if Union do not willingly refund the RPI, insist in getting their refusal in writing and go to Small Claims court.

    Please keep me posted and if I can help contact me.
     
  8. Jennywren

    Jennywren New Member

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    9
    Hi Gerry,
    Thanks for that.
    My ex husband hasn't signed the loan anywhere at all.
    His name is in the area where they filled in the income to our house. It states his name, place of work, amount of wage and how often it's paid and obviously where the RPI is mentioned, as the main breadwinner. It states that the loan would be protected should the main breadwinner become ill or redundant.
    But not if I, the sole borrower became ill or redundant..
     
  9. Gerry Canning

    Gerry Canning Frequent Poster

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    Just does not seem right , as I thought RPI attaches to the loan? (could be wrong)
     
  10. Jennywren

    Jennywren New Member

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    I don't really understand what you mean by attaches to the loan. Sorry Gerry, could u explain that to me please?
    I don't think it seems right either and I have been told before that it doesn't sound like something that should have been done.
     
  11. Gerry Canning

    Gerry Canning Frequent Poster

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    2,504
    ...................
    Hope this explains.

    1. Loan is solely in your name.
    2. You are solely responsible for the loan.
    3. Your ex husband has nothing at all to do with the debt on the loan.

    Attaches to loan , means that any payout must go to reduce the loan but if person named on RPI does not have a loan ie your ex , then RPI cannot pay out and RPI was miss-sold to you.

    A. RPI pays out on loans when the person who is, (normally the first named only) on the actual loan gets ill etc.
    B. Usually RPI only pays out on the 1st named on a loan ,and since he did not sign up for loan RPI could not pay out on this loan anyway.
    C. If he fell ill though the RPI might pay out directly to him.

    I am not 100% sure of the way RPI is done in Credit Unions.
    So suggest.

    Ask Credit Union for a full copy of Terms and Conditions on the RPI.
    You can then see for sure if I am correct (I think I am).

    Keep me posted please.
    If you want ring me on 0872437139.
     
  12. Jennywren

    Jennywren New Member

    Posts:
    9
    Hi Gerry
    Thanks for that. I've asked the credit union for a full refund and they refuse to pay it. They say it was not mis sold as I apparently opted to note my ex husband as the main breadwinner. Therefore I could have made a claim on the policy should my ex husband be maxed redundant.. However this atk doesn't make sense to me because I'm still not covered if I'm out of work, only if my ex husband was..
    So now that we are divorced, I'll never have cover..
    The RPI premium was added to the total loan amount.
    It's says on my contract under the breadwinner protection
    If you are not in full time employment, you can still avail of of RPI. Enter the name and date of birth of the breadwinner below and your repayments will be protected in the event of the breadwinner becoming Ill or redundant..
    Also, a number of times over the years I asked for the RPI to be cancelled as I didn't need it or want it and the strongly advised against it every time.
     
  13. Gerry Canning

    Gerry Canning Frequent Poster

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    2,504
    Have spoken to a CU person.
    Apparently on RPI you can have an RPI in someway separate from loan?
    Makes little nuff sense to me for you to (opt)? to cover husband but maybe it is so?
    ...................................................
    It does not sound like an honourable way of doing business and I have great time for Credit Unions and do not wish to bash them.
    ......................................................
    From your note, it looks like you only got loan on the (back) of ex,s RPI.
    That on its own is not satisfactory .

    Get a copy of all loan documents and full RPI conditions.
    To me still smells of at best poor selling !
    I understand most CU,s have stopped RPI , that says a lot!
     
  14. Jennywren

    Jennywren New Member

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    9
    I only got the loan on the back of my husbands wages too.. It could and would never have been approved without the input of his wage as I only worked 16 hours a week at the time and it was quite a substantial loan, yet they didn't think to add my husbands name to the loan agreement even though we were both borrowing it to do our new house up...
    I've spoken to a member of the credit union through email and he had written to me to say I wont be recieving a refund.
     
  15. Gerry Canning

    Gerry Canning Frequent Poster

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    I hear you;

    It is obvious loan was not a runner without CU being comfortable that enough income was coming into the house.
    Good lending practise should have meant you both signed.
    Today though, it is only you who is stuck with repayments.

    On the RPI.
    Maybe CU can add exes name on a policy that would repay your loan should he be made redundant.
    However it still does not seem right?
    Would some CU official who reads AAM please give us some clarity.

    It has the appearance that CU is covered by Letter of the Law, not the Spirit of the Law.
     
  16. Jennywren

    Jennywren New Member

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    9
    Thanks Gerry.
    I just don't know how they could expect me to know when my ex husband is in or out of work you know? It's not like we would be in contact...
    As you say, Hopefully someone can give us more clarity on the situation.