Nemo unsecured loan repayment impossible.

[blanko1]

Hi Everyone,

I am new to the forum and also relatively new to debt problems unlike my partner who has got a large debt problem. I am trying my best to help him, as he is tending to ignore it, and have searched for hours online and I am now asking for your help as the worry of it all is making me and my partner ill. I apologise in advance that it will be a long explanation as it has got quite complex over the years.

 

Unbeknown to me, my partner took an unsecured loan out in 2010 with Nemo finance for what totalled up to 75,000 including a large amount for PPI (explained later), to pay off a mortgage (my partners) on a house he was left by his mum of around 43000. He used the rest for funeral expenses and put some in a pension scheme. When I found out he had done this about 2 years after, I knew it was totally the wrong thing to have done and there were many rows. Now all we want to do is get it sorted.

 

The payments originally were £400 per month, a hefty amount on a salary of about £12000 per year. I don't think he should have been sold this loan on this basis and also that he was sold the loan to pay off a much lesser interest rate mortgage with a high street bank ( which though was a higher rate because he had had court injuntions for debts in his first marriage) was still taking out a much more expensive loan to pay off a lesser one, if that makes sense. He also accumulated a large overdraft at the bank because he couldn't make these payments and also bank charges etc for going into unauthorised overdraft. So his debts were spiralling.(He is always living in overdraft now which is about 1400. So my first question, was it missold in the first place??? Once I have a definite answer to this we can then move on to the next step of forgetting that and sort out what to do about paying it off. Thanks in advance for any help given towards this.

 

About a year ago Nemo offered a reduction in the loan as we looked into the fact that there was a PPI on it that had been sold unfairly, they offered a reduction in the loan and gave 8% for redress etc and the loan was reduced to 37000 and payments reduced to 230 per month. I'm not trying a sob story as I know he was silly to take on this loan but I am disabled and he is on a low income and he has missed payments as he can't afford them. Consequently, he has got a letter from the company now saying that they will serve a Court Order on him to retrieve the money. They have offered him the alternative to fill out a budget form and he is now taking notice and going to fill it out. Now the second question, we have been looking into an IVA but this costs thousands, or bankruptcy, or if he could make some sort of lower payments to Nemo would this be the best way? and how would he be best approaching the company to do this and should we be able to ask them to freeze the interest payments? Or do we just have to follow whatever they say he has to do. There is not a lot of income left from his pay once bills, fuel, living expenses are paid out.

 

I maybe should add that he lives with me, I was a widow and the house is mine fully paid off and that no loans have ever been in my name which I presume means that our home is safe but would they take my income into account?

 

Best wishes to all for some resolution to our problems and any help offered would be gratefully appreciated.

 

Blanko1

Edited June 28, 2013 by citizenB
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[citizenB]

If you are looking just for your partner to enter bankruptcy and he has no assets of his own (the house being in your name) then you are correct, they cannot take your home.

 

If this loan is purely in his name then there is no comeback on you whatsoever.

 

Did Nemo refund ALL of the PPI along with associated interest ?

 

You could indeed enter into a repayment plan with them however, unless they freeze the interest and cease adding charges, then this is not going to resolve the problem for you.

 

You might find it worth speaking to National Debtline and I will also send out an S.O.S for caggers to see if they have any ideas as well.

 

 

http://www.nationaldebtline.co.uk/

 

or call National Debtline free on 0808 808 4000

• Monday – Friday 9am-9pm
  
• Saturday 9.30am-1pm
  

[blanko1]

Many thanks for your quick response, My partner contacted the National Debtline about a year ago and they sent an information pack but didn't really advise as to what was the best option. I should also add that the house he was left by his mum was sold and the loan was making up the shortfall of the mortgage on it, so he doesn't have that asset now.

[citizenB]

Many thanks for your quick response, My partner contacted the National Debtline about a year ago and they sent an information pack but didn't really advise as to what was the best option. I should also add that the house he was left by his mum was sold and the loan was making up the shortfall of the mortgage on it, so he doesn't have that asset now.

 

TBH, if he has no assets, and a fair amount of "personal " debt, then that is the best time to apply for bankruptcy ! The only thing is it will screw up his credit file for 6 years - even though the BR will very likely only run for about 12-18 months when he will then be debt free.

[thebaneofbanks]

what I dont understand is if the house was left to him by his Mother (who I am assuming has died) and there was a shortfall why he had to take out a loan. Surely that would have been the responsibility of the estate and if there was no money in the estate then that would be the end of the debt. Who advised/told him he needed to repay the shortfall as that tome seems to be very dubious.

[blanko1]

Hi there, thanks for taking an interest (no pun intended!). Yes I know where you are coming from, it was difficult to explain everything in my first post. His mum put the house in his name when she was alive as he had lived with her for many years and paid the bills etc for the house. He remortgaged the house along the way for some work on the house and other things. At the time of sale he paid off the mortgage early and took the loan out to cover early payment of the mortgage and the other expenses. It isn't the way I would have done things at all but I was unaware of all this. He just wanted to get rid of the house as it had become a drain, as they do when not being lived in, and was allowed by Nemo to do it this way. One of the reasons that I think he was missold by Nemo. It was all done through the solicitor who was selling the house too so I'm not very happy that they didn't say anything or maybe that's not their job!!!

[blanko1]

Hi Citizen B, sorry, I should have got back to you before now but was waiting for any other replies. I see what you mean about going for bankruptcy, it is a lot of money to be owing and a noose around our necks and we are thinking of applying for it, but I still have this feeling that it was missold. Time is ticking away now I feel, should he send in the budget plan to Nemo or just directly go for bankruptcy? We feel something should be done before they start with any Court proceedings? Another thing Nemo did which I don't think was right was they turned up at my door whilst my partner was away demanding to see him and that they would be definitely sending someone else around to speak to him at the end of the week. I just told them we were having problems and that I didn't know where he was but would pass a message on. I know it wasn't true but they worry me and I don't think they are allowed to turn up unannounced?

Thanks for your help as I am feeling very alone in this and don't know what to do for the best and neither does my partner.