My wife's spending secret - Help needed

[johnwalker]

On checking our joint bank account online this morning I noticed a loan had been taken for very large amount, over £30k.

I called the bank as I was very concerned that someone may have used our personal details to obtain a loan.

After speaking to the bank countless times and to cut a long story short, this evening my wife has admitted to owning 6 credits - owing a total of £25k - taking a £7.5k loan out 2 years ago and a new loan of £16k a day ago to consolidate the bank loan and help give her cash to pay towards the credit card payments.

All in all she has spend a fortune over the last 5 years - so while I'm watching every penny in out joint account she's been having a right time.

It's all come to a head tonight and TBH if we didn't have a young daughter, one of us would be walking.

It seems the loan for £16k was taken out by her forging my signature and with insurance the amount would be over £36k spread over 7 years. Therefore, the loan is in my name and hers!

I have told her to call the bank on Monday 1st thing and cancel the loan for £16k. As she has just taken the loan I understand she can cancel it within 14 days as per the Credit Act of 2004.

If this goes okay, then she'll be left with around £30k of debt in her name.

I have told her to call the CCCS on Monday and tell them about the cards and the loan for £7.5k and that she can't afford to pay them. Even with my wage there's no way we can pay these things off.

Todays proceedings have left me very upset and distressed. TBH, I don't trust her and struggle to even talk to her.

Am I liable for my wife's debt if my name is not on the account?

I would appreciate some feedback on this post. Thanks for reading it.

[scampjet]

Obviously your relationship has deteriorated for whatever reason and I appreciate that it will be hard for you, but in my opinion it would help you both to seek some kind of mediator to your problems. As you are both involved in this, might I suggest that you both talk to citizens advice initially regarding this debt. They are very approachable and will be able to advise you of your liabilities in this. Whether you are liable or not I cannot say, but CAB should be able to advise you further. The important thing here if I may say so, is to stay calm and deal with the problem together if possible. I would assume that this level of loan from a bank has been made subject to some security eg. Property? If this is joint then you will have to deal with this together more so, and the sooner you can, the sooner you will come to a resolution. Cancelling the loan from yesterday is definatley a good idea (assuming of course that no money has been recieved). I sincerely hope you can see a way through this together, and I wish you well.

[Michael Browne]

Can I also suggest talking to National Debt Helpline here:
National Debtline England & Wales | About National Debtline

[yourbank]

Loan cancellation should be fine within the first 14 days. Has any of the new loan been spent?

[johnwalker]

Thanks for your posts.

Seems the loan was applied for last Wednesday and is now in my wife's account. No monies have been drawn from it, the monies only showing in the account yesterday.

It is real important that we are able to cancel this loan, as the £16k comprises of consolidating a loan of £7.5k and a new one for £9k. The new one of £16k includes insurance and a absurd interest rate making it a total of over £36k. It seems the amount is shown in full at £36k and as it was taken out using my name as 2nd borrower, appears in my internet banking. If she had taken it out by herself I would never have known about it!

I'm really struggling with this. In the last few months, we've managed to pay of a loan on a motorbike and conservatory early which improves our monthly cashflow. My wife was made redundant last year and her new job pays her £200 less a month.

I cant take it in she's managed to hide this for 5 years. Looks like she took cash from the cards to help pay the £7.5k loan and pay the minimum payment on the cards. Looking at the statements it seems the latest payment is due within the next few days. I cant afford to make any payment on the cards as it will leave us with no money to run the house.

[yourbank]

As Michael has said speak with CCS.
I am going to ask this question and I may get slapped by others for doing. Is it possible to re mortgage the house to clear the debt completely, as a re mortgage MAY be cheaper than a loan? Is there equity in the house, i can see you have made improvements to it.
The question i am asking really is whether taking additional equity on the property will ease the burden of how you can run the house and will have the cards completely off your back. It is an avenue that you may or may not want to look at.

[johnwalker]

I have been thinking about a re-mortgage. However, this will increase my debt too and will mean repayments that will really hammer our monthly outgoings.

I have 'told' my wife to cancel the loan first thing in the morning and then call CCCs.

The question is am I liable for her debt and if the house is in joint names I am liable?

The car and motorbike is in my name along with most of the utility bills. The only real reason why I'm still around is our daughter. Without her, I'd have left and sought divorce.

This is not the first time she has lied about money but that was a few grand - This is £50+ today and all being well £30k tomorrow.

[yourbank]

If the credit cards are solely in her name(ignore remortgage idea, for now) then the debt is hers alone. Anything in joint names is jointly and severally liable. There is another much more unpleasant route to go down which is reporting it as fraud on joint applications. This has to be considered carefully.

With regards to remortgage idea. I would work out how much it is costing now, possibly look at the net as to how much it could cost, and then work out if it is the route to go on. As I said remortgage clears the debts and leaves one. OR another route
You wife looking either to balance transfer credit cards for a lower apr. Concentrating on minimum payments on the worst offenders and paying as much as possible onto the lowest credit card outstanding to get it paid off and working on that bit by bit by bit.

[johnwalker]

Originally Posted by yourbank

There is another much more unpleasant route to go down which is reporting it as fraud on joint applications. This has to be considered carefully.

Not even an option. I have a daughter who is only 9 and very sensitive. This would cause too much trauma to her and leave us even worse off.

As I spoke with the Bank's personal lending yesterday and asked them to look into the £36k showing in the account, tomorrow I have to call them to say an error has been made by me and that I understand what the amount is for. This is extremely embarrassing as I told them I yesterday I had not taken any loans out (yet my wife forged my signature only last Wednesday). They of course tape everything so I will have to be real candid and tell them that I cannot discuss the matter any further. Hopefully this will be enough.

I'm a tight git with money and every penny counts. However, despite being married for over 16yrs my wife has learnt nothing about finance.

For years I have only taken c/cards out which have 0% finance promotions - using them to pay for car insurance and odds and ends to avoid paying interest on them and then clearing the balance before taking a new card on! I do this to save £30 a year on insurance interest, so you get an idea how careful I am with money!

What baffles me is how she can get £8500 on a c/card when I am only offered £2500 when I get a new one.

I just hope that she is tough enough tomorrow to tell the bank she does not need the loan tomorrow.

Wife's parents are coming over today (god knows why). I'm opting to get out in the car, taking my daughter to the park so she can avoid hearing all the stuff she heard yesterday. Perhaps they'll find £50 to put in the kitty.

[yourbank]

There was unfortunately a time when to get an automated increase in your credit card all you had to do was not pay off the full balance. When you ring them simply say you have worked out what it was for and that you saw the total balance and thought that it was something else.(calls recorded may well not be kept for that long).
With regards to the comment I made that you highlighted, it is precisely that which is why I said what I said. Where family and kids are involved, I am sure it is a route you don't want to go on.

[johnwalker]

Originally Posted by yourbank

There was unfortunately a time when to get an automated increase in your credit card all you had to do was not pay off the full balance. When you ring them simply say you have worked out what it was for and that you saw the total balance and thought that it was something else.(calls recorded may well not be kept for that long).
With regards to the comment I made that you highlighted, it is precisely that which is why I said what I said. Where family and kids are involved, I am sure it is a route you don't want to go on.

Thank you for your posts - they're most appreciated.

[johnwalker]

Letter written to hand into bank to cancel loan.

Wife is going with her parents to CAB tomorrow.

[yourbank]

Good luck with everything and if you need more advice, post on here and I'm sure people will help you, even if it is by lending an ear.

[johnwalker]

The update is:

Wife went to CAB on Monday who advised her to write to the 6 credit card companies and inform them of the situation. She then wrote to each one with a token payment.

On Monday she went to the Bank with the loan cancellation letters but no one was available to help! This was because the personal finance person was not there and neither the Bank Manager or Asst Bank Manager could help. She made an appointment for Tuesday.

She spoke with the finance person on Tuesday advising him in writing and via conversation that 'we' wanted to cancel the loan.

Two days later I am chasing my wife to chase this person to ensure the loan has been cancelled - it's still showing on my internet banking.

In conclusion the wife is waiting for an appointment with a debt advisor c/o CAB. I don't trust her at all but I will stay put as we have a daughter.

One thing is for sure, she aint taking me down the road of re-mortgaging the home or using all my wages to pay for her extravagance. If we didn't have a daughter one of us would not be in the house.

Perhaps I'll have to wait 10 yrs til my daughter is at University before I move on!

[yourbank]

This is a terrible situation. Remember, that as a co signer on the loan(albeit without permission), you can also chase this cancellation up as well.
I think you need to give her credit for going to the CAB and that she is facing her debts openly.
Hopefully you can speak to her and see how bad it is a whether or not maybe you can help her if she has charges(late payment/overlimit ones) on the Credit Cards.

[johnwalker]

I haven't and wont praise her for going to CAB - I'm not even sure she's said sorry yet!

We have a joint account and I am watching every penny. As for the late payment / min payments - well, my wages wont cover the min payments on all the cards and allow us to live.

I have asked her what CAB said but apart from the advice re sending the letters I have been told nothing else.

What are her options though?
Small monthly payment to each card (for the rest of her life)
Bankruptcy (that might effect me with the joint mortgage)

[yourbank]

I have to be perfectly honest and say, that I don't know. That question is maybe better in the debt forum as I am no expert on her options.