Guarantor / Credit Union / Default question - Urgent!

tates1979

Hi all -

Further to a previous post a year or so ago... Ill basically explain situation.

1. My father acts as a guarantor for a family friend (stupid, I know) for a £2000 loan with the credit union (a local, irish-based money-lending service - decent rates etc) - think for loanee's wedding.

2. Loan is happily being repaid. Loanee asks for two additional amounts of 500 and 500, each of which my father has to sign for to approve. (even more stupid)

3. Loan still being happily repaid, 100 a month or so..

4. Father gets a letter 8 or 9 months later, saying that loan is no longer being repaid and that a default has been registered on his credit file. Meanwhile, father's credit score, which was extremely high, has been wrecked!

5. Father contacts the credit union and sees the loans supplied to said loanee.

6. Transpires that the Credit Union, after my father approved the two additional amounts of 500+500; then loaned the loanee another 1k, an amount that my father did not approve or sign for.

My father isn't too hot with all this stuff so i said i'd ask friendly folk on this forum for advice. He said he's going to solicitor tomorrow to do same, but would be good to have him briefed. My question is this - have the Credit Union negated the original credit agreement by agreeing to lend said loanee an extra 1k without my fathers express permission? From my POV, this could be seen as irresponsible lending on their behalf, and extra payments etc may have resulted in their failure to pay back the loan etc. Added to the fact that as my father was acting as guarantor, he would have had to have approved this amount.

Does he have any legal angle on this to help him out in any way?

Thanks guys.

tates1979

Bump for a post quickly disappearing!!!