Secured Loan..partner left and wont pay his half

[angelsta904]

Hi everyone...
Myself and my ex partner took out a secured loan against my property in 2008.
The mortgage is in my name and the secured loan is in joint names.
We have since split up.
I am now left paying for the secured loan (which is in joint names)
Can anyone tell me..
A) Is he legally bound to pay back his half
B) How can i go about this
C) Can the loan company split it in half

He signed the papers and agreed for this.
Does it matter what the money was for?

Thanks everyone in advance!!

[Pinky69]

Re: Secured Loan..partner left and wont pay his half

Secured loans below £25000 are regulated by the Consumer Credit Act and those above £25000 are unregulated. If it is below £25000 it is worth checking that all the paperwork is correct. The company will not split the loan. Usually the term"jointly and severally" is used in the agreement, which means if he won't pay they will come after you - the loan is secured on your property. The only way you will be able to get your money out of him is take him to court as being a signature
to a joint agreement. As your home may be at risk I would take legal advice.

[CYNthesys]

Re: Secured Loan..partner left and wont pay his half

Ive never understood how someone can enter into a joint secured loan, if the property is solely owned.?

[angelsta904]

Re: Secured Loan..partner left and wont pay his half

thanks
think i should speak to citizens advice

[The Debt Star]

Re: Secured Loan..partner left and wont pay his half

Ive never understood how someone can enter into a joint secured loan, if the property is solely owned.?

A+B are jointly liable for a loan secured on A's property.

The loan company can pursue A and force her to sell her house, if necessary, to recover their money. No point pursing B. Going after A is enough.

However, A is free to sue B for his share of the liability. Assuming he's worth going after.

As always, Pinky is spot on.

[CYNthesys]

Re: Secured Loan..partner left and wont pay his half

But it surely cant be a joint secured loan in the true sense, as the ex doesnt own the asset that the loan is secured against.
I always believed that you had to personally own an asset to be eligible for secured loan.

[teaboy2]

Re: Secured Loan..partner left and wont pay his half

Actually in regards to joint accounts, when secured against property of other assets, only one person named on the account needs to own such property or asset - They are basically the guarantor in the same sense as a guarantor is on unsecured loans whom themselves need to be homeowners in most cases.

Angelsta904

When you say ex-partner, am i right in thinking you were not married?

[The Debt Star]

Re: Secured Loan..partner left and wont pay his half

Actually in regards to joint accounts, when secured against property of other assets, only one person named on the account needs to own such property or asset - They are basically the guarantor in the same sense as a guarantor is on unsecured loans whom themselves need to be homeowners in most cases.

Angelsta904

When you say ex-partner, am i right in thinking you were not married?

correct. the loan company don't care if A or A+B own the property, all they are concerned about is that they can pursue the legal owner if the loan defaults.

married or unmarried. Relevant in ancillary relief proceedings sure and if so then the joint debt is definitely something that will be taken into account (Form E).

But regardless of this A has a right to go after B under the terms of the joint liability (contract).

[teaboy2]

Re: Secured Loan..partner left and wont pay his half

correct. the loan company don't care if A or A+B own the property, all they are concerned about is that they can pursue the legal owner if the loan defaults.

married or unmarried. Relevant in ancillary relief proceedings sure and if so then the joint debt is definitely something that will be taken into account (Form E).

But regardless of this A has a right to go after B under the terms of the joint liability (contract).

Exactly.

[The Debt Star]

Re: Secured Loan..partner left and wont pay his half

I'm so glad ur here Teaboy

[teaboy2]

Re: Secured Loan..partner left and wont pay his half

I'm so glad ur here Teaboy

Me too Debt Star, and its safe to Safe CAG can goto hell as far as concerned after the way they had treated me and even more so after the way they have treated some of you guys.

Though justice is best served cold so i suspect it won't be the end of the matter as i for one do not give up without a fight, especially when they have made false accusations about me on their forum, whether named or not it is clear to those following the thread in question that they were refering to me.

[Sparkie1723]

Re: Secured Loan..partner left and wont pay his half

If your loan was entered into after 6th April 2008 it is regulated by the New Consumer Credit Act...that was the date the limit was abolished.

I will make the following point on this thread.... and direct everyone to the Swift Advances plc thread.

You will see that I have placed information that states that there is no such thing as "an unregulated agreement" if it is secured by a land charge.............it is an EXEMPT agreement....... there are other exemptions one such is defined as;
A High Nett worth agreement ..........a loan made to a person with an income of over £150,000 per year.......not many of us about with those kind of pennies is there. This never came in until the New Credit Act amendments.

There is a list of them in the OFT Guide on......... Regulated and Exempt Agreements
There are only two types of loan agreements.
Regulated Agreements and Exempt agreements.

There is no statute that states " Unregulated" ....it is a word that has been invented.....and used and everyone takes it for granted............but its wrong.

Unregulated merely means that it is unregulated by the CCA.....it does not mean it is completely unregulated by other statutes.............as I say First charge mortgages are "unregulated" but what that means it is unregulated by the CCA..............that does not mean it is completly unregulated .........because it is regulated........BY THE FSA
Because it is secured by a land charge.

If you had a first charge mortgage loan UNDER £25,000..... i.e. secured by a land charge........it would not be regulated by the CCA......section 16 Barrs it from being so.

My view interpreted from section 16 and what the OFT state
Taken from OFT guide on regulated and exempt agreements.

CONTENTS

Chapter Page
1 Introduction 1
2 Regulated agreements 3

3 Exempt agreements 7

If you read section 189 of the CCA Definitions...........you will find no mention of "unreglated" anything.


To further support my interpretation sect 8 (3) must also be read.

Up till now no-one has noticed this because it has been constantly thrown in your face ...."this loan is unregulated".....not true ...it is secured by a land charge and just like any First charge mortgage ......they are regulated by the FSA and the lender has to have an FSA licence.................some second charge mortgage lenders hold an FSA licence to lend under a secured second charge ..,.....but a lot do not

Pre April 2008 the maximun any lender could lend under a CCA licence was £25,000

Sparkie





I am not a lawyer and this is my own interpretation.......not to be taken as absolute fact ......but to be considered seriously

[angelsta904]

Re: Secured Loan..partner left and wont pay his half

thanks so much guys for your feedback
my loan was taken out before april 2008..
I really appreciate your support and advice.

[Pinky69]

Re: Secured Loan..partner left and wont pay his half

The use of the word "Unregulated" is taken from the agreements themselves which state they are either "Unregulated" or "Non Regulated." They also state they are secured on a standard security. It is not the precise "Exempt" but I think judges will know what it means in the event of court proceedings. My view is that the law pertaining to secured loans should be left to lawyers given the possible repercussions.

[Sparkie1723]

Re: Secured Loan..partner left and wont pay his half

The use of the word "Unregulated" is taken from the agreements themselves which state they are either "Unregulated" or "Non Regulated." They also state they are secured on a standard security. It is not the precise "Exempt" but I think judges will know what it means in the event of court proceedings. My view is that the law pertaining to secured loans should be left to lawyers given the possible repercussions.

Thanks Pinky69 for your input....... it is good to have someone act as devils advocate.
I must add this about your argument just because it states what it does on an agreement as a heading does not mean it is right.

As I have said it merely means that it is unregulated by the CCA...it does not mean it is completely unregulated, your argument is the one that everyone has been misled into believing........there is no such thing as an unregulated agreement........ that is what I am saying.
You can search the CCA from front to back and you will not find the word "Unregulated" anywhere in it.

But I am glad for your argument that way folks can measure the strength of each argument.

Thanks again

Sparkie