Guarantor on car finance help!!

[Blakey1982]

Hi All

A female friend of mine is guarantor on her ex partners car - he is causing her hassle by saying he will stop making payments if she gets with anyone else (not me by the way - i'm happily married).

Is there a way she can get out of the agreement as they are no longer together?? The finance company said no she is dually responsible until it is paid???

Cheers all

[CLAPTON]

unfortunately, no ... that's what a guarantor is ... someone who has agreed to pay the debt off it the debtor defaults.

She may be able to take him to the small claims court however if he deliberately defaults.

[dad-of-4]

arrange for his car to dissapear, the insurance will settle the finance. end of.

alternativly make the X disapear,

only joking.

[standupguy]

I assume her partner has the car?

Take a look at a copy of the finance agreement - a lot of Finance companies now use joint hirer's rather than guarantors.

If she is second name on the agreement then she has the right to voluntary terminate the agreement.

You need to know if one half of the hp price has been paid - under those circumstances she would have no more to pay.

So, if he stopped paying and the Finance company come to her she can simply vt the agreement and leave the Finance company to get the car from the ex.

[Blakey1982]

Hi all

thanks for the replies

One thing - I'm sure there must be something in the agreement that allows the guarantor to call the shots so to speak.

I mean - if she called the finance company and said "we are no longer together, I dont want anything to do with him or the car?" The dont really have much of a case do they?

I understand she agreed to be the guarantor and this is the finance companies protection but if he starts threatening cant she order the finance company to take the car back as he is becoming threatening???

Cheers
Paul

[nomoneytoday]

Originally Posted by Blakey1982

I mean - if she called the finance company and said "we are no longer together, I dont want anything to do with him or the car?" The dont really have much of a case do they?

Afraid that's not the case. The finance company care about getting their loan back, and not the relationship status of the debtor and guarantor.

Sorry

[iolanthe07]

I mean - if she called the finance company and said "we are no longer together, I dont want anything to do with him or the car?" The dont really have much of a case do they?

I agree with nomoneytoday. She signed the deal; her personal life is of no interest to the bank

[Blakey1982]

Are there any instrances where the Guarantor can either 'get out' of the agreement or reclaim/give back the car?

Need some help on this

[Zapp from Planet Zogg]

Not that I am aware of.

The guarantor has no relationship with the finance house and is not part of the 'normal' contactual relationship in the finance agreement. The guarantor is only called upon when the contract becomes 'distressed', if the named individal on the agreement defaults.

It could be worth her speaking to the finance company and simply asking to be removed from the agreement - I don't think they have to honour such a request, but it is worth a shot and, if the payments have all been made on time, they may consider the ex partner to be less of a risk and can give him sole responsibility for the loan.

May be worth her checking out the 'financial associations' on her credit file too. If things have gone sour permanently, it may be worth writing to the credit reference agencies to get the financial links with that person removed. Then, if he presses the self-destruct button, she will be out of the blast radius, so to speak.