# Can someone else's loan be transferred to my loan?



## Kiciusia (22 Aug 2014)

Long time listener, first time caller.

I headed up a local event c'ttee and as money was outstanding after an event a few of us took individual loans to cover the bills.  Since then one of the lads has, lets say, disappeared.  As part of some debt restructuring on my personal loan and as I was the head of the committee it was put to me to take on the other fella's loan.  To be fair the event was my brainchild and I felt beholden to the loss we delivered so I agreed.

I've suddenly got a bit worried though.  This debt was transferred to me with no authorisation from the other fella who has departed the country.  Can a CU do that, just transfer over a loan?  If they can that's great, but if they took some regulations shortcuts, with me in the middle, then i'm a little bit worried about repercussions.  

Any insights?


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## Brendan Burgess (22 Aug 2014)

Effectively, you have borrowed €400 to pay off someone else's loan of €400. 

This seems perfectly reasonable. The original borrower should be notified, as he now owes this money to you. 

Brendan


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## Crugers (22 Aug 2014)

Kiciusia said:


> ... As part of some debt restructuring on my personal loan and ... I felt beholden to the loss we delivered so I agreed.


 You appear to have had an adjustment in your loan. If the there was a change in any of the terms - adjusted principal, repayment amount or extending the term, then you would have had to sign a new credit agreement.



Kiciusia said:


> ...This debt was transferred to me with no authorisation from the other fella...


In effect that may be what happened. In reality the CU topped up your loan and used those funds(the monies you borrowed) to repay his outstanding balance.

My concern would be that the CU may have discussed the other fella's "situation" with you!


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## Bronco Lane (23 Aug 2014)

I certainly would not have agreed to transfer over another persons loan to my account under these circumstances. I am sure that he knew what he was getting in to when he took out the loan. You say that it was "put to you" to take over this person's loan when your own financial situation came up for review. You were under pressure at the time.
However you did agree and whether you can back out now is another matter.


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## Brendan Burgess (23 Aug 2014)

Bronco Lane said:


> I certainly would not have agreed to transfer over another persons loan to my account under these circumstances. I am sure that he knew what he was getting in to when he took out the loan. You say that it was "put to you" to take over this person's loan when your own financial situation came up for review. You were under pressure at the time.
> However you did agree and whether you can back out now is another matter.



That was my initial reaction too. But, on reflection, the OP took a very strong moral stance at the outset to accept responsibility for the deficit. So taking over an unpaid loan is merely an extension of this initial stance.


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## Kiciusia (25 Aug 2014)

Thanks for input folks.  I'm happy to pay it off, well obviously be great if it hadn't accrued to begin with, but under circumstances happy to have had the support form the CU to be able to pay the outstanding bills.  You just get so much thrown at you about signing money laundering forms and what not, so was worried about breaching something along those lines.

We'll drive on, doesn't look sound like there is anything to be worrying about. Cheers.


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