Help!

sarahec

I really hope someone can help i dont know where else to go. My partner has a loan with FLM (dont ever go there) and of course it is with a guarantor. The guarantor is someone from his past and no longer in contact, we are due to marry in July so want to get everything sorted. Unfortunately a couple of payments have been missed and the money is taken from the guarantor, which ultimately causes stress on us to find the money quick and post on to this person. Is there anyone who knows of a way to get the guarantor out and have it taken from our account each month on time?? We dont have an option to change to a different guarantor already asked all 2 people we know who own their own house. I really hope someone can help? Also from a £3000 loan over the last year only £300 has been paid off because of interest at over 49%, what can we do??:(

savingmummy

Hi welcome to the board, i have no advise but it may be worth you posting on the loans forum too for more advise.

Hope you get things sorted out x

GeorgeUK

Welcome Sarah.

That's a horrible APR, but i've seen worse.
I take it he is unable to get any decent creditstill? Is his credit file unhealthy (defaults/CCJ's)?

To get the money coming out of your account on time you may want to set up a standing order. This will ensure that as long as there is money there, the loan will get paid.

Can't offer any advice in getting the guarantor removed.

Have you tried looking at getting a loan from a credit union?
Their rates aren't as good as the banks but are alot less than 49% - even the poor credit rating may not be a problem. You need to be a member for a few weeks sometimes, but not always. Might be worth looking into.
http://www.abcul.org/page/members.cfm

How much are the monthly payments? If it's £110pm then that's about right and will take another 4 years to get rid of. If you are paying more than this then you should check to see if you have payment protection insurance (PPI) on the loan and check to see if it was missold.
http://www.moneysavingexpert.com/reclaim/

niccatw

According to this thread
http://forums.moneysavingexpert.com/showthread.html?t=2121879

it doesn't look like you can change the situation. There is a link in it later on (it goes a bit off tangent as people get annoyed with each other!) that might help. Sorry.

fatbelly

FLM is part of the Richmond Group.

Their CEO is James Benamor who is 32 and worth £77M. Was ranked 8th richest person in the UK under 30 two years ago!

He has hit on an interesting business model of giving 'guarantor loans' at 49% apr to people with debt problems who can persuade a homeowning friend or relative to act as guarantor. So if the loan defaults, they go after the house.

How do they make contact with these people with debt problems? Oh yes, they also run Debtline, 'a free telephone consultation to loan applicants struggling with multiple unsecured debts and looking for one easy monthly repayment'

Yes it does have a name very similar to the genuine debt help charity National Debtline, doesn't it? I wonder if anyone ever gets confused and ends up with Debtline rather than National Debtline?

Just thought I'd give some background info for our readers....

tigga_1961

hi, im in the last yr of my loan with flm and cant wait till its finished, there is no way you can change the guarantor he signed to pay for the loan should you fail but to get the loan paid from your own account make sure the money is in on time or you can pay at a paypoint or over the phone in advance of the due date to make sure they dont go to the guarantor, i was having financial difficulties and so was my guarnator being a builder in a recession, but flm wouldnt let me reduce the payments or anything to help they want their money, end of now im in a postition where i could pay off the loan early but as the interest is front loaded it wouldnt save me anything, so roll on december, hth