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  • FIRST POST
    • Jaymie1989
    • By Jaymie1989 7th Dec 17, 12:00 PM
    • 4Posts
    • 0Thanks
    Jaymie1989
    Guarantor on loan. Payment defaulted
    • #1
    • 7th Dec 17, 12:00 PM
    Guarantor on loan. Payment defaulted 7th Dec 17 at 12:00 PM
    Hi,

    Looking for some advice.
    My partner stood guarantor for a friend of 25+ years for a loan upto 10k for a loan from Amego.
    Since there has been 3 repayments have been made, her friend has stopped repayments and since not been contactable via multiple ways. Amego and my partner have been in contact with each other. Since she stood as guarantor her financial situation has changed a lot as well as now pregnant she's informed them that she can't afford the repayments and has done everything Amego have asked in terms of a budget planner and such.

    What/how do we go down the route of taking her to court for this loan amount?
Page 1
    • zx81
    • By zx81 7th Dec 17, 12:06 PM
    • 14,389 Posts
    • 15,184 Thanks
    zx81
    • #2
    • 7th Dec 17, 12:06 PM
    • #2
    • 7th Dec 17, 12:06 PM
    You could try, but I doubt you would be successful unless you had a contract that allowed you to pursue her.

    The purpose of a guarantor is to make the payments when the borrower no longer wants to.
    • TrickyDicky101
    • By TrickyDicky101 7th Dec 17, 12:13 PM
    • 2,827 Posts
    • 1,829 Thanks
    TrickyDicky101
    • #3
    • 7th Dec 17, 12:13 PM
    • #3
    • 7th Dec 17, 12:13 PM
    If the friend doesn't have any money, there's little point pursuing her through the courts - you can't magic money up out of thin air I'm afraid.

    What action are Amigo taking against your partner?
  • National Debtline
    • #4
    • 7th Dec 17, 12:16 PM
    • #4
    • 7th Dec 17, 12:16 PM
    Hi Jaymie


    In my experience, your partner's chances of recovering this money from her "friend" will (regrettably) be virtually nil. The best she can do for now is to negotiate affordable repayments with Amigo and ensure that they are fully aware of her financial/personal circumstances. If she hasn't already sought independent advice from one of the free debt charities already, I strongly recommend it.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • IAmWales
    • By IAmWales 7th Dec 17, 2:05 PM
    • 1,853 Posts
    • 3,842 Thanks
    IAmWales
    • #5
    • 7th Dec 17, 2:05 PM
    • #5
    • 7th Dec 17, 2:05 PM
    Is there any equity in the property you're trying to sign over to someone else?
    • bearcat16
    • By bearcat16 9th Dec 17, 6:27 PM
    • 318 Posts
    • 368 Thanks
    bearcat16
    • #6
    • 9th Dec 17, 6:27 PM
    • #6
    • 9th Dec 17, 6:27 PM
    Your partner should look to get a loan in her own name from a mainstream lender like Tesco, Barclays etc. This will be at a decent rate (ie ~4%) not the high rate of 50% that amigo charge.

    Then use that loan to pay off the amigo loan.

    Then pursue the friend for the payments.

    If you don’t, you’ll continue to be liable for the high interest amigo loan.
    • dresdendave
    • By dresdendave 10th Dec 17, 12:39 PM
    • 672 Posts
    • 789 Thanks
    dresdendave
    • #7
    • 10th Dec 17, 12:39 PM
    • #7
    • 10th Dec 17, 12:39 PM
    Your partner should look to get a loan in her own name from a mainstream lender like Tesco, Barclays etc. This will be at a decent rate (ie ~4%) not the high rate of 50% that amigo charge..
    Originally posted by bearcat16
    This would be a sensible step to take.
    Then use that loan to pay off the amigo loan. .
    Originally posted by bearcat16
    This would also be a sensible step to take.

    Then pursue the friend for the payments..
    Originally posted by bearcat16
    This would be a complete waste of time and energy and will only give false hope to the guarantor.

    If you donít, youíll continue to be liable for the high interest amigo loan.
    Originally posted by bearcat16

    Thanks to steps 1 & 2 you'll only be liable for the loan at a sensible interest rate.
    • Bedsit Bob
    • By Bedsit Bob 10th Dec 17, 3:10 PM
    • 9,835 Posts
    • 51,610 Thanks
    Bedsit Bob
    • #8
    • 10th Dec 17, 3:10 PM
    • #8
    • 10th Dec 17, 3:10 PM
    My partner stood guarantor for a friend of 25+ years for a loan up to 10k for a loan from Amego.
    Originally posted by Jaymie1989
    Not liking the sound of "up to 10k".

    What/how do we go down the route of taking her to court for this loan amount?
    Firstly, you need to find her, and, judging by your statement that she has "not been contactable via multiple ways", it's sounding like she may have done a bunk.

    Even of you can locate her, and get her into court, it's likely she hasn't the money to make the payments, so it could be costing you a lot of time and money, to get a judgement, which may be impossible to enforce, and certainly during any reasonable timeframe.

    My advice is, arrange a payment plan with Amigo, and don't stand guarantor ever again.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1161
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