Guarantor on loan. Payment defaulted

Jaymie1989 · 7 December 2017 at 1:00PM

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?

[Deleted User] · 7 December 2017 at 1:06PM

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 · 7 December 2017 at 1:13PM

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 · 7 December 2017 at 1:16PM

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

IAmWales · 7 December 2017 at 3:05PM

Is there any equity in the property you're trying to sign over to someone else?

bearcat16 · 9 December 2017 at 7:27PM

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 · 10 December 2017 at 1:39PM

bearcat16 wrote: »

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..

This would be a sensible step to take.

bearcat16 wrote: »

Then use that loan to pay off the amigo loan. .

This would also be a sensible step to take.

bearcat16 wrote: »

Then pursue the friend for the payments..

This would be a complete waste of time and energy and will only give false hope to the guarantor.

bearcat16 wrote: »

If you don’t, you’ll continue to be liable for the high interest amigo loan.

Thanks to steps 1 & 2 you'll only be liable for the loan at a sensible interest rate.

[Deleted User] · 10 December 2017 at 4:10PM

Jaymie1989 wrote: »

My partner stood guarantor for a friend of 25+ years for a loan up to 10k for a loan from Amego.

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.

Guarantor on loan. Payment defaulted

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