Advice needed - Guarantor for a loan I want to get out of!

tommitchelldrum

Hi there.

About a year ago I said that I would be a guarantor for the lead singer in my old bands loan. This was to help pay off some recording costs and I felt like I should be a nice person and help out.

Now I don't talk to the guy and he is starting to miss payments on the loan which is really out of order.

Is there any way I can resolve this eg Can I somehow remove myself as guarantor or something?

Any help would be much appreciated.


Tom.

cabbage

HI
Generally speaking unless you lacked mental capacity when signing or were forced to sign, I think there is very little you can do apart from take him to the small claims court to reimburse you. However, if he has no money to pay you back, then even this route will be fruitless.

jonesMUFCforever

Of course you can stop being a guarantor - all you have to do is pay the loan off.

aj2703

I would also like to know this, as my sister is in a similar situation.

And please no sarky comments like the ones from that stupid manc above.

HopeAndDriftWood

No. If there was a way to cancel, having a guarantor would be pointless!
Some companies might let the loan holder 'change' guarantor from you to someone else, but thats at their discretion. It's much more likely that they will say no.

All you can do is talk to the person about how important it is that they pay off the loan as soon as possible and don't miss payments.

ThrowingStonesAtYou

This isn't what you want to hear, but this is how it is. If the original loan customer chooses not to pay for any reason (eg. they'd rather keep their money and let you pay) then you have to pay it off if you are guarantor. This is how being a guarantor works.

As another poster said, unless you were forced to sign under duress (eg Jack Bauer was torturing you) or were mentally incapable of agreeing to the terms (eg you had drank 10 pints of cider in the hour before) then you have no comeback.

chalkie99

If the "lead singer" had been a decent credit risk the lender would not have required a a guarantor - that should have set off alarm bells at the time.

As mentioned above there would be no point in requiring a guarantor if that person could get out of the agreement when it went pear shaped. Worse still, there is possibly not as much incentive for the lender to chase the borrower when they have your guarantee to fall back on.

If it were me I would start talking to the friend now and let them know, in no uncertain terms, that you intend pursuing them for the default to try and cut your losses. They probably think they have nothing to worry about as they have shifted it to being your problem.

talana

aj2703 wrote: »

I would also like to know this, as my sister is in a similar situation.

And please no sarky comments like the ones from that stupid manc above.

It may have been a sarky comment, but also absolutely correct.
If you act as guarantor for someone else's loan, then you must understand the implications. You are GUARANTEEING that the loan will be repaid (ie by you) if the borrower defaults for any reason. That's the whole point.

Again, all your sister can do is talk to the borrower and try to knock some sense and responsibility into them.

CHR15

There is a simple reason they required a guarantor..... they pretty much KNEW the applicant was not going to repay the loan based on his/her history.

Seems obvious doesn't it??

[Deleted User]

aj2703 wrote: »

I would also like to know this, as my sister is in a similar situation.

And please no sarky comments like the ones from that stupid manc above.

why was it a sarky comment?its the only answer to the problem

inmypocketnottheirs

woodbine wrote: »

why was it a sarky comment?its the only answer to the problem

Some people get very tetchy when they dont hear what they want to hear. And even more so when it points to their own stupidity.