Credit union issues

J

Jennywren

Registered User
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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
 
It is not unusual to take a partner or parents income into the equation, but it is usually done in conjunction with the partner or parent signing a guarantee or joining in the loan. As the loan is in your sole name, you are solely liable for it. It was not necessarily a well underwritten loan, but it is a legal contract and you are liable.
The RPI you purchased would pay the monthly loan if your husband was out of work. With RPI, you can nominate the "breadwinner" as another party and if that party loses their job, your loan payments are met from the insurance subject to all the conditions etc. If you still have RPI, you can cancel it now & the unused premium will be refunded into your loan account. If you feel you were mis sold this insurance, it is your right to formally complain to the CU, and if not satisfies go to the next level.
You should talk to your CU and explain your inability to meet the full payments & make an offer based on your having enough to live on after all debts are serviced. You may need to talk to MABS who are specialist support
 
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